Finding Canadian stocks that pay dividends and are growing can be a challenge. If a company is specifically focused on dividends, it often doesn’t have much capital left over to invest in growing its business.
Finding a smart balance between paying dividends and re-investing in long-term earnings power is crucial for long-term investors. If you are looking for stocks with growth and income, this three-stock combo should be on your radar.
A diversified stock with a solid dividend
Calian Group (TSX:CGY) is a $750 million company that not too many Canadian investors have on their radars. Yet its stock is up nearly 100% over the past five years. It operates a conglomerate of businesses focused on healthcare, training, technology, and cybersecurity.
Its largest customer is the Canadian government and military, but it also has a diversified group of corporate and private customers. It has a backlog worth $1.3 billion, so it has plenty of revenue to realize ahead.
The company has a great balance sheet with $35 million of net cash. Acquisition and organic growth should continue to help earnings rise by a high teens rate. Plus, this stock earns a 1.75% dividend yield right now.
A leader in specialized health products
Another stock with a combination of growth and income is Jamieson Wellness (TSX:JWEL). It is a leading provider of vitamins and health supplements across North America and increasingly the world. Over the past five years, it has delivered a 64% stock return.
It just acquired a major supplements brand in the United States. Given the U.S. is the largest supplement market in the world, that will give Jamieson a major foothold for long-term expansion in the region. Right now, management hopes to grow revenues and earnings per share in 2022 by 22% and 17%, respectively.
Jamieson stock earns a 1.9% dividend yield today. It has increased that dividend by a 22% compound annual growth rate (CAGR) since 2016. For a stock that is growing earnings and dividends at an attractive rate, Jamieson looks well positioned for solid returns ahead.
A financial stock with a fast-growing dividend
goeasy (TSX:GSY) has put up some exceptional numbers. Its stock is up 188% over the past five years. It is up over 940% over the past decade! As one of Canada’s largest non-prime lenders, it has been quickly gaining market share as many banks have moved out of the space.
The company has been expanding both geographically and by vertical (i.e., recreational vehicles, buy-now-pay-later). While it is facing some near-term economic headwinds, it still expects to grow revenues and adjusted earnings per share in 2022 by 23% and 10%, respectively.
It just raised additional capital, so it has the fire power to grow at an even faster pace in 2023. Right now, goeasy trades at an attractive earnings multiple of only 8.5. It pays a 3.2% dividend yield. It has grown its dividend by a +30% compounded annual rate for the past several years.
If you have a longer-term time horizon, this stock could continue to deliver elevated total returns, but you may need to be patient.