4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever

As inflation remains high and the market continues to have tonnes of uncertainty, these four dividend stocks are the top stocks to buy today.

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As the market was rallying rapidly over the last few years, many investors were focused on finding higher-risk growth stocks that could gain value rapidly and significantly. However, as market conditions have deteriorated since the start of 2022, it’s becoming increasingly clear why it’s also essential to buy and hold high-quality dividend stocks for the long haul.

Dividend stocks, especially dividend-growth stocks, offer numerous benefits for investors, such as a steady income stream, which is especially important for passive-income seekers or those nearing retirement.

In addition, because these stocks are well established, they often have lower volatility, which helps to shore up investors’ portfolios in these highly uncertain environments.

In addition, when you find dividend stocks that increase their dividends at an impressive rate, these companies can also act as a hedge against inflation.

So, if you’re looking for high-quality dividend stocks to buy now and hold for years, here are four top companies with impressive dividend growth.

A top growth stock paying an impressive dividend to buy now

One of the first stocks to consider is goeasy (TSX:GSY), an impressive specialty finance stock that’s known for its tremendous growth over the last few years.

Although the stock is being impacted in the near term by economic headwinds and potential changes to its business model after the Canadian government released its budget proposal this week, the stock still has incredible long-term growth potential.

Therefore, with the stock trading so cheaply today, and with its dividend offering a yield of more than 4.1% as of Thursday’s close, it looks like one of the top dividend-growth stocks to buy now.

Not only has goeasy’s loan book continued to grow rapidly as well as its revenue and earnings, but it’s also been increasing its dividend rapidly over the last few years.

In fact, in just the last five years, goeasy’s dividend has increased from $0.90 to $3.84 — a compound annual growth rate (CAGR) of 33.67%.

An impressive Canadian retail stock

Another top dividend-growth stock that investors can buy today is Canadian Tire (TSX:CTC.A), the impressive retail stock.

Canadian Tire has also seen its share price impacted over the last year due to the fears that the market has over how badly its business could be impacted by the recession.

Despite these concerns, though, the stock has continued to perform well and exceed expectations. Plus, with the stock trading off its highs, not only can you buy it at a discount, but you can also lock in a dividend yield of roughly 4% today.

And on top of that impressive dividend as well as the capital gains potential that Canadian Tire has, its dividend has also grown at CAGR of 13.9% over the last five years.

One of the best dividend-growth stocks to buy now

One of the most reliable stocks that investors can consider is Fortis (TSX:FTS), a defensive utility stock.

Fortis is one of the top dividend-growth stocks to buy now due to this reliability, but also the fact that it has the second-longest dividend-growth streak in Canada, at just shy of 50 years.

It’s one of the top stocks to buy for consistent passive income, and, in addition to offering a yield of 3.9% today, it’s also grown its dividend at a CAGR of 5.86% over the last five years.

A top blue-chip stock

And finally, Nutrien (TSX:NTR), the massive blue-chip stock with a market cap north of $48 billion, is certainly one of the best dividend stocks to buy now.

Nutrien is highly defensive, has a dominant position in its industry, and constantly generates tonnes of cash flow.

Furthermore, the stock achieved Dividend Aristocrat status as soon as possible after it increased its dividend in each of the first five years since its inception after the merger of Agrium and Potash Corp at the start of 2018.

So, although the high-quality agriculture stock offers a yield of just 2.9% today, much of its earnings are being reinvested in growing the business.

Plus, the dividend has grown at a CAGR of 5.8% since the merger, showing why Nutrien is one of the top dividend stocks in Canada to buy today and hold for years to come.

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 has positions in Goeasy and Nutrien. The Motley Fool recommends Fortis and Nutrien. The Motley Fool has a disclosure policy.

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