There’s a reason why so many high-quality Canadian stocks pay a dividend to their shareholders. Dividend stocks are some of the best investments you can buy, offering a mix of attractive passive income and long-term capital gains potential.
However, while there are plenty of dividend stocks to consider adding to your portfolio, dividend-growth stocks are almost always the best to start with. With dividend-growth stocks, your money is working for you and earning you passive income. However, your capital is also constantly getting a raise each year, which helps to compound your money significantly in the long run.
And because dividend-growth stocks are increasing their dividends consistently over time, it’s often a sign of what a high-quality company they are, as well as their ability to constantly earn strong cash flow.
Finally, because these stocks have such strong and robust operations, they are ideal to own in this uncertain investing environment. If you’re looking to increase your passive income, here are three of the best Canadian dividend-growth stocks to buy now.
A top utility stock offering attractive dividend-growth potential
If you’re looking for reliable dividend-growth stocks to buy that can boost your passive income, utility stocks such as Emera (TSX:EMA), are some of the best to start with.
Utility stocks are well known to be highly defensive, and Emera has built a portfolio of many utility companies in different jurisdictions, diversifying its operations and reducing risk even more.
These diversified operations are constantly growing their income and cash flow, allowing Emera to constantly increase the dividend for investors.
In fact, Emera has increased its dividend for 16 straight years and today offers a yield of roughly 5%. Furthermore, according to management’s guidance and its current capital plan, Emera expects to increase that dividend between 4% and 5% each year for at least the next two years.
If you’re looking for a low-risk stock that provides consistently growing passive income each year, Emera and high-quality utility stocks like it are some of the best to buy now.
A high-quality residential REIT offering investors attractive passive income
Another industry that’s ideal for passive-income seekers looking to buy dividend-growth stocks is real estate. And while there are several high-quality real estate stocks in Canada, one of the very best to buy now is Canadian Apartment Properties REIT (TSX:CAR.UN).
CAPREIT is a compelling buy because it owns residential real estate properties all across Canada, giving it a tonne of diversification. Furthermore, it owns all types of properties from apartment buildings to manufactured home community sites.
Plus, in addition to CAPREIT owning many defensive assets, it’s proven for years what a high-quality growth stock it can be, constantly increasing its sales and, of course, the distribution it pays to investors.
Over the last three years, CAPREIT has increased its revenue by 29%. And over the last 10 years, its sales have increased by 144%.
With CAPREIT offering investors a yield today of roughly 3%, and with the stock having increased that distribution for 10 straight years, it’s one of the top dividend-growth stocks in Canada to buy and hold long term.
A top blue-chip, dividend stock to buy now
Along with Emera and CAPREIT, Nutrien (TSX:NTR) is another Dividend Aristocrat and one of the top stocks to buy now to boost your passive income.
Nutrien was formed after a merger just five years ago and has increased its dividend each of these years to secure its spot on the Canadian Dividend Aristocrats list.
The company is the largest producer of potash in the world and one of the largest producers of nitrogen, two key ingredients in fertilizer, which makes Nutrien a dominant player in the global agriculture industry.
It also owns processing facilities and a massive retail network of more than 2,000 stores, helping it to earn significant cash flow.
In the five years since its inception, it’s increased its dividend payments by roughly 33%. And today, Nutrien offers a yield of roughly 2.8%.
Therefore, Nutrien has to be considered one of the best dividend stocks that you can buy now and hold for years to come.
