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3 Top Dividend Stocks With Massive Dividend Growth

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Canadians need dividend stocks right now. But even more than that, they need stable dividend stocks. These are stocks that will continue to see dividends grow years from now, and it’s not easy to find. Sure, you can find a list of high-yield stocks out there, but what good is that if the company can easily slash the dividend?

Luckily, there are solid companies out there that continue to promise years of dividend growth. These dividend stocks are large companies that have been around for ages and aren’t going anywhere. Let’s look at three dividend stocks that just raised their yields.


The oil and gas sector hasn’t been doing well lately, and that’s no secret. One of the companies continuing to suffer is Enbridge (TSX:ENB)(NYSE:ENB). The company provides the solution to the oil and gas glut through its pipeline projects, but it is still down in share price until that happens. Yet it has decades of long-term contracts that will see revenue remain steady as well as dividend growth.

The company has paid a steady dividend for over 66 years to shareholders and recently grew its dividend by 3%. That’s despite three quarters of lower revenue. But Enbridge management remains convinced the company will eventually rebound, and shares have started to follow as well. But if you’re in it for the dividend, the company has raised it at a compound annual growth rate (CAGR) of 14.84% over the last decade!

Royal Bank

The Big Six banks have been trying to keep things stable since a market crash was predicted. That’s not to say the pandemic was predicted, but some sort of economic meltdown sure was. That meant companies like Royal Bank of Canada (TSX:RY)(NYSE:RY) needed to prepare and keep dividend payments going.

That’s exactly what happened. The company raised the dividend yield back in February 2020. Since then, it has been stable, even as revenue collapsed. But if there’s one bank you can count on to continue payouts, it’s Royal Bank. The company is the largest bank by market capitalization, with growth in several industries and companies that will continue to see revenue rise after the crash is over. Meanwhile, the bank’s dividend growth remains at a strong CAGR of 7.93% over the last decade.


There aren’t many telecommunication companies to choose from in Canada, but TELUS (TSX:T)(NYSE:TU) has to be at the top right now. The company managed to put down wireline throughout most of Canada right before the market crash. It can now sit back and charge higher prices, with all the hard work behind the company — all this while Canadians switch providers as they start working from home.

The company announced during its latest earnings report that it would be raising its dividend by 6.8%! TELUS management maintains it will continue raising the dividend by about 7% per year — something investors can certainly look forward to. If you look back, it’s usually better. TELUS has a CAGR of 9% over the last decade in dividend increases.

Foolish takeaway

You can guarantee that these companies will continue dividend payouts, even through another market crash. What you can also practically guarantee is that you will continue to see strong share growth, as these companies come out the other side. We could all use some extra cash, and these dividend stocks continue to pay it out in spades.

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 Amy Legate-Wolfe owns shares of ENBRIDGE INC and ROYAL BANK OF CANADA. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends TELUS CORPORATION.

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