5 Canadian Dividend Aristocrats to Buy and Hold Forever

Irrespective of the uncertain macro and geopolitical environment, investors can rely on Dividend Aristocrats for additional income. Dividend Aristocrats are the companies that have consistently paid dividends and continuously increased them for at least five years. So, if you are eyeing reliable dividend income, consider adding these five Canadian stocks to your portfolio now.

Fortis

Fortis (TSX: FTS)(NYSE: FTS) is among the most reliable income stocks listed on TSX. Its low-risk business consistently generates predictable cash flows that drive its payouts. This utility giant has continuously increased its dividend for 48 years. Further, it projects 6% annual growth in its future dividend through 2025.

Its rate-regulated business, growing rate base, and renewable capacity expansion augur well for future growth and will likely drive its earnings. Overall, its conservative business mix, strong cash flows, and growing rate base indicate that its payouts are well protected and could continue to increase.

Enbridge 

With its 40 diverse cash flow streams and stellar dividend payment history, Enbridge (TSX: ENB)(NYSE: ENB) is a reliable investment to generate consistent income. It increased its dividend at an annualized rate of 10% over the past 27 years. Moreover, it has been paying a dividend for over 67 years.

The recovery in its mainline volumes, strong energy demand, ongoing momentum in its core business, multi-billion secured capital program, and strategic acquisitions will likely drive its DCF (distributable cash flows) and support higher payouts. It expects a 5-7% increase in its DCF per share in the medium term and offers a solid yield of 6%. 

TC Energy 

Like Enbridge, shares of TC Energy (TSX: TRP)(NYSE: TRP) are another top bet in the energy infrastructure space to generate reliable dividend income. This Dividend Aristocrat has continuously increased its dividend for 22 years. Further, it expects to increase its dividend by 3-5% per annum in the coming years.

Its resilient portfolio of regulated and contracted assets and high utilization rate indicates that the company could easily deliver on its guidance. Further, TC Energy’s solid secured projects, momentum in existing assets, revenue escalators, and additional sanctioned projects provide a solid platform for future earnings growth. 

Algonquin Power & Utilities

Utility company Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) has increased its dividend for 11 years. Moreover, its dividend has a CAGR of 10%, which is encouraging. Its conservative business mix, regulated assets, and long-term agreements generate predictable cash flows and support higher dividend payouts.

The company expects its rate base to increase at a CAGR of 14.6% through 2022, which will expand its high-quality earnings base and drive future payouts. Thanks to its growing rate base, Algonquin Power & Utilities expects its adjusted net income to increase by 7-9% through 2026, indicating that its future dividend could grow at a healthy pace.

goeasy

goeasy (TSX: GSY) has been paying a dividend for 18 consecutive years. Moreover, it has increased it uninterrupted at a CAGR of 34.5% in the last eight years. This financial services company’s strong dividend growth comes on the back of its stellar earnings base. Notably, its bottom line has grown at a strong double-digit rate for about two decades.

Moreover, higher loan origination, product expansion, acquisitions, and robust payment volumes indicate that the momentum in its revenue and earnings will sustain and support future dividend growth.