Passive-Income Hunters: 3 Top Stocks to Add $6,250 to Your Annual Income

This group of dividend-growth streakers, including Manulife Financial Corporation (TSX:MFC)(NYSE:MFC), can help build your wealth the prudent way.

Hello there, Fools. I’m back to highlight three top dividend-growth stocks. As a quick reminder, I do this because businesses with consistently increasing dividend payouts

  • can guard against the harmful effects of inflation by providing a growing income stream; and
  • tend to outperform the market averages over the long haul.

The three stocks below offer an average dividend yield of 2.5%. Thus, if you spread them out evenly in an average $250K RRSP account, the group will provide you with a growing $6,250 annual income stream. And it’s all completely passive.

Let’s get to it.

Living the good life

Leading off our list is life insurance giant Manulife Financial (TSX: MFC)(NYSE: MFC), which has steadily grown its dividend 72.5% over the past five years.

Manulife’s payout growth should continue to be supported by solid operating efficiency, strong growth from Asia, and a sound financial position. In Q1, core earnings improved 15%, new business value jumped 31%, and core ROE increased to 14.2% from 13.4% in the year-ago period.

“We continue to make progress in the execution of our digital customer-centric strategy, including the roll-out of our electronic claims systems in Asia, as well as an industry-first voice-enabled retirement product in the U.S.,” said CEO Roy Gori.

Manulife shares are up 24% so far in 2019 and currently offer a healthy dividend yield of 4%.

Rolling right along

With smooth dividend growth of 97% over the past five years, retail giant Canadian Tire (TSX: CTC.A) is next on our list.

Canadian Tire’s dividend is nicely underpinned by favourable real estate locations, strong brand recognition, and a steadily growing financial services business. In the most recent quarter, consolidated same-store sales — a key metric in gauging the health of a retailer — were up 6.1% year over year. Moreover, financial services revenue increased 7.8% over the year-ago period.

“Ending our winter season with exceptional sales performance positions us well as we enter our second-largest quarter of the year,” said President and CEO Stephen Wetmore.

Canadian Tire shares have climbed 21% so far in 2019 and currently offer a solid yield of 1.6%.

Stan the man

Rounding out our list is engineering and construction company Stantec (TSX: STN)(NYSE: STN), which has provided five-year dividend growth of 55%.

Stantec’s wide geographic reach and significant market share should continue to benefit shareholders, as infrastructure spending grows globally. In the most recent quarter, net income jumped 22%, revenue improved 11.8% to $904 million, and contract backlog grew to $4.4 billion.

“We are particularly pleased with the strong organic growth achieved in our global business, which demonstrates the value of our growing geographic reach and augments the diversity of our business mix,” said President and CEO Gord Johnston.

Stantec shares are up 6% so far in 2019 and currently offer a decent yield of 1.8%.

The bottom line

There you have it, Fools: three attractive dividend-growth stocks worth checking out.

As always, don’t consider them formal recommendations. They’re simply a starting point for more research. The breaking of a dividend-growth streak can be especially painful, so plenty of due diligence is still required.

Fool on.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.   

More on Dividend Stocks

man shops at grocery store
Dividend Stocks

A High Dividend Yield Can Be a Warning Sign: Here’s Why

A high dividend yield can signal trouble. TELUS and Slate Grocery REIT show why investors should examine what supports their…

Read more »

Real estate investment concept
Dividend Stocks

Paying Off the Mortgage or Saving for Retirement First? A Guide for Your 40s and 50s

Find out how rates, renewals and tax rules shape your choice in your 40s and 50s, and where blue chip…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

$14,000 in a TFSA: 2 Stocks I’d Buy for Meaningful Monthly Cash Flow

Cardinal Energy (TSX:CJ) and another monthly income play that's fit for those seeking huge dividends and deeper value.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use a TFSA to Generate an Average of $500 in Monthly Tax-Free Income

Unlock the potential of a TFSA for tax-free savings. Discover strategies to generate income while minimizing taxes for the future.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

This Stock Pays You a 4.7% Dividend Every Single Month

Sienna Senior Living's seemingly safe 4.7% monthly dividend yield, eligible dividend tax perks, and strong growth potential appear attractive today

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Most Canadians Pick the Wrong Investing Account First: Don’t Be One of Them

Your first investing account matters far more than your first stock. Compare the TFSA, RRSP and FHSA for 2026 and…

Read more »

money goes up and down in balance
Dividend Stocks

Building a Retirement Paycheque: Where Each Dollar Comes From

Thinking about retirement? Find methods to create passive income to cover daily expenses and enhance your financial freedom.

Read more »

Three children jump on an outdoor trampoline
Dividend Stocks

The RESP Deadline is December 31: Ottawa Adds 20% for Free

An affordable RESP contribution can attract a 20% basic grant, with December timing, catch-up limits, and the child's age shaping…

Read more »