3 High Yield Dividend Stocks with Insane Dividend Growth

If you’re looking for high-yield stocks with strong dividend growth, consider Telus Corporation (TSX:T)(NYSE:TU)

| More on:

For long-term investors, dividend stocks are the name of the game. Offering steady income in bull and bear markets, they’re the perfect buffer against the stock market’s natural vicissitudes.

For many income investors, a high dividend yield is a worthy prize in itself. If you earn 5% a year without even worrying about your stock price, you can really watch your income grow.

But it’s not only high yields that dividend investors should look for. In addition to the yield you’ll get today, you also need to consider your “yield on cost” tomorrow. By investing in dividend stocks with rising payouts, you can watch that yield grow steadily over time.

If you’re a Canadian investor with an eye for high yields and dividend growth, you’ve got many great TSX stocks to choose from. The following are just three of the best.

Canadian Utilities Ltd

Canadian Utilities Ltd (TSX:CU) is a diversified energy company with $22 billion in assets. The company provides electricity to homes and businesses with assets in pipelines and natural gas storage. This year, the company is mainly investing in regulated utilities, having laid out $241 million in capital expenditures on this part of its business to date.

Between 2019 and 2021, the company plans on investing $3.5 billion in regulated utilities in Canada and Australia, which it says will grow its earnings base considerably.

In its most recent quarter, CU grew its adjusted earnings from $0.39 to $0.46 per share for a year-over-year growth rate of 17%. The company’s stock pays a dividend that yields 4.4% at current prices, and the payout has increased by 10.2% a year on average over the past five years.

Telus

Telus Corporation (TSX:T)(NYSE:TU) is one of Canada’s largest telecommunications companies. It provides phone, internet and IPTV services to customers nationwide. In its most recent quarter, the company added 186,000 new subscribers, posted record revenue of $3.59 billion, and grew its earnings by 31% year over year.

The company’s stock already has a yield of 4.6%, and its solid growth offers hope that it can keep raising the payouts in the future. Speaking of which, the company has increased its dividend by about 9% a year on average over the past five years and aims to raise the payout by 7-10% per year over the next three years.

Enbridge

Enbridge Inc (TSX:ENB)(NYSE:ENB) is one of Canada’s largest energy companies, a pipeline network that ships oil and natural gas across North America. As a pipeline, the company makes money by charging set fees rather than by a cut of oil sales, which makes its revenue more predictable than the average energy company.

This shows in its results: over the past four years, the company has increased its earnings from $250 million to $2.8 million in a time when oil has been far from consistently strong.

Due to its relatively stable income stream, Enbridge is able to raise its dividend year in and year out. It already has a massive 6.47% yield and has raised its dividend by an astounding 17% a year on average over the past five years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

data analyze research
Dividend Stocks

Dividend Powerhouses: Top Canadian Stocks to Enhance Your Portfolio

These stocks have increased the dividend annually for decades.

Read more »

dividends grow over time
Dividend Stocks

The Smartest Dividend Stocks to Buy With $5,000 Right Now

The smartest dividend stocks on the market can provide decades of growth on autopilot. Here's how and what stocks you…

Read more »

Canadian dollars are printed
Dividend Stocks

Build a Lucrative Passive-Income Portfolio With Just $35,000

Canadians can build a lucrative passive-income portfolio with a small capital and a pair of dependable dividend payers.

Read more »

profit rises over time
Dividend Stocks

Buy 2,990 Shares of This Stock for $165.25/Month in Passive Income

A high-yield dividend stock can transform your investment into monthly passive income streams.

Read more »

close-up photo of investor Warren Buffett
Dividend Stocks

3 Warren Buffett Stocks to Buy Hand Over Fist in November

Warren Buffett has been buying Occidental Petroleum (NYSE:OXY) hand over fist. He previously owned the similar Canadian oil giant Suncor…

Read more »

dividend growth for passive income
Dividend Stocks

Is Intact Financial Stock a Buy for its 1.8% Dividend Yield?

Intact Financial's dividend is not that attractive, but its strong history of execution and dividend growth are compelling factors for…

Read more »

Hourglass and stock price chart
Dividend Stocks

Where Will Brookfield Stock Be in 5 Years?

Based on its recent successes, Brookfield Corp (TSX:BN) looks poised to be more valuable in five years' time than today.

Read more »

hand stacks coins
Dividend Stocks

The Smartest Dividend Stocks to Buy With $400 Right Now

The market is full of dividend stocks to buy. Here's a look at two options that cater to both growth…

Read more »