Earn $1,155 in Dividend Income That the CRA Can’t Touch

This group of dividend-growth streakers, including Choice Properties REIT (TSX:CHP.UN), can help give your portfolio a much-needed raise.

| More on:
Mature financial advisor showing report to young couple for their investment

Image source: Getty Images

Hello there, Fools. I’m back to highlight three attractive dividend growth stocks. As a quick reminder, I do this because companies with consistently growing dividends

The three stocks below offer an average dividend yield of 7.7%. If you spread them out evenly in a modest $15K Tax-Free Savings Account (TFSA) account, the group will provide you with an annual tax-free income stream of $1,155; on top all the appreciation you could earn.

Let’s get to it.

Top choice

Leading off our list is retail real estate company Choice Properties REIT (TSX:CHP.UN), which has steadily grown its dividend by 14% over the past five years.

Choice shares have held up well during the pandemic-related crash, suggesting that it remains a solid way to play defense. Specifically, Choice’s long-term dividends should continue to be supported by a high-quality portfolio, steady cash flows, and a prudent M&A strategy.

In the most recent quarter, adjusted funds from operations (AFFO) clocked in at $152 million. More important, Choice’s AFFO payout ratio stood at a still-solid 85%.

“The COVID-19 pandemic did not have a material impact on our financial results for the quarter, but our team was busy working on a wide range of measures to help ensure the health and well-being of our employees and tenants,” said President and CEO Rael Diamond.

Choice shares currently offer a rather tempting dividend yield of 6.1%.

Bank shot

Next up, we have financial services specialist Laurentian Bank (TSX:LB), which has grown its dividend payout by 22% over the past five years.

Laurentian shares have yet to recover after plunging in March, but now could be an opportune time to jump in. Specifically, the bank’s decent scale (revenue recently exceeded $1 billion), strong credit quality, and a rock-solid financial position continue to underpin its long-term investment case.

Although both revenue and earnings were disappointing in Q1, Laurentian’s Business Services segment continued to grow, while its personal loan portfolio showed further stabilization. Moreover, the company’s Common Equity Tier 1 ratio stood at a still-respectable 9.0%.

“We have completed a substantial part of the transformation and we are beginning to see real progress in foundational work, growth in our customer base and concrete advancements towards improving customer experience,” said President and CEO François Desjardins.

Laurentian shares currently offer a tempting dividend yield of 9.5%.

Read the tape

With dividend growth of 39% over the past five years, packaging company Intertape Polymer (TSX:ITP) rounds out our list this week.

Intertape shares still remain off about 40% from their 52-week highs, providing Fools with a possible buying opportunity. After all, the company continues to leverage its solid international reach, consistent cash flows, and leadership position in the packaging space to deliver solid results for shareholders.

In the most recent quarter, for example, EPS of $0.24 topped expectations by $0.07 while revenue of $279 million also beat estimates.

“From our perspective, we believe the business is extremely well positioned to weather the downturn,” said President and CEO Greg Yull. “Most importantly, the commitment of our employees to continue to perform in the face of the pandemic we believe demonstrates that they recognize the essential nature of their work as well as the trust in our team to protect their health and safety.”

Intertape currently offers a healthy dividend yield of 7.4%.

The bottom line

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

As always, they aren’t formal recommendations. They’re simply a starting point for more research. The snapping of a dividend-growth streak can be particularly painful, so plenty of due diligence is still required.

Fool on.

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

More on Dividend Stocks

Specialty Brands faces higher raw materials costs.
Dividend Stocks

What’s Next for Premium Brands Stock?

Shares of the specialty food production and distribution company have fallen about 25% since last October.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Investors: 3 TSX Stocks for Tax-Free Passive Income

These Canadian corporations have strong visibility over future earnings and dividend payouts.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

Lazy Landlords: 3 Cheap Canadian REITs to Buy in May 2022

You can become a passive landlord today by investing in Canadian REITs. Here are three cheap REITs to consider this…

Read more »

Target. Stand out from the crowd
Dividend Stocks

4 High-Yield TSX Stocks to Buy Ahead of Their Ex-Dividend Dates

If you have some cash lying idle, consider these high-yielding TSX stocks.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Passive Income: 3 TSX Stocks With Rapidly Growing Dividends

Worried about inflation? Here are three passive-income stocks to buy that pay rapidly growing dividends.

Read more »

Family relationship with bond and care
Dividend Stocks

Retirees: 4 Safe Stocks to Buy for Decent Passive Income

Retirees can offset the impact of runaway inflation by buying safe dividend stocks to create more cash flows.

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

3 Canadian Energy Stocks to Buy for Reliable Passive Income

Canadian energy stocks are gushing cash. Here's three top stocks that are perfect buys for reliable passive income.

Read more »