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3 Top Dividend Growth Stocks to Buy and Never Sell

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Whether or not you’re a dividend investor, buying stocks that return you cash is key to long-term investing. So even if you’re not primarily looking to buy stocks paying a dividend, these companies can be some of the top contributors to the long-term growth of your capital.

And even if you are more of a growth investor, dividend stocks don’t have to be highly resilient than slower-growth companies. Although most dividend stocks are, there are plenty of low-yield stocks that are growing their share price rapidly.

So if you’re looking to add to your portfolio today, here are three top dividend growth stocks that every Canadian investor should consider.

A top high-yield stock

If you’re a dividend investor, you have to consider Enbridge (TSX:ENB)(NYSE:ENB) for an investment. Enbridge is easily one of the top dividend growth stocks in Canada.

The massive energy giant has both a tonne of growth potential and a tonne of resiliency, which few stocks offer.

Enbridge has some of the best assets in an industry with extremely high barriers to entry, giving it a significant competitive advantage. This makes it a great company that you can count on to be a cash cow for years.

Energy is one of the most important industries around, and Enbridge is at the heart of the North American energy sector. This is why it’s one of the top dividend growth stocks to buy and hold forever.

Enbridge’s mainline system, regional oil sands, liquids pipelines, gas transmission, and midstream, and gas distribution segments are all major contributors to its operations. Plus, it even has a rapidly growing renewable energy segment.

Currently, its dividend yields more than 6.6% and has been increased for 26 consecutive years. So if you’re a dividend investor looking for a top growth stock to buy, Enbridge is one of my best recommendations.

A top defensive stock

If you’re looking for a stock that’s even more resilient than Enbridge but still offers exceptional dividend growth, then a top consideration would be a utility stock. Fortis (TSX:FTS)NYSE:FTS), for example, is one of the most resilient stocks in Canada.

The electric and gas utility has extremely defensive operations, which makes it a lot less volatile than almost every stock in Canada.

For example, it has a much lower beta than Enbridge. However, it doesn’t return as much cash to investors. Currently, its yield is 3.5%, which is still attractive but nowhere near the 6.6% of Enbridge.

Fortis is still a top stock to buy for dividend growth, though. It’s increased its payout for 47 consecutive years. So if you’re looking for a highly stable stock that will protect your money and continue to grow its dividend, Fortis is an ideal company to consider.

A low-yield dividend growth stock

Finally, if you are looking for a stock with a lot more growth potential, Alimentation Couche-Tard (TSX:ATD.B)(TSX:ATD.A) is a great option. The growth stock’s dividend yields just 0.7% at these prices, yet it’s still one of the top investments to make today.

Couche-Tard is a global operator of convenience stores and gas stations. Its incredible growth has come mostly through acquisitions, has earned investors a total return of more than 1,000% over the last decade.

Much of the reason why this top growth stock has achieved such exceptional returns is due to the small dividend it pays. By keeping more of the income it makes to reinvest in growth, Couche-Tard has more potential to grow its operations. And clearly, that’s been a prudent decision, as investors have seen their money grow at a compound annual growth rate of 27.5%.

Today, while the focus from Couche-Tard has shifted more to organic growth, the company will still take full advantage of any opportunities should they arise.

So if you’re looking for a top growth stock, Couche-Tard is one of the best in Canada and even pays a growing dividend.

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 Daniel Da Costa owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Enbridge. The Motley Fool recommends FORTIS INC.

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