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

Are you planning to start a passive-income stream? These Canadian stocks consistently increase their dividends.

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Several Canadian stocks have been consistently paying and growing dividends for years. This makes them an attractive investment to start a growing passive-income stream. In this article, I’ll discuss four such underrated dividend stocks that offer steady income amid all market conditions. 

These dividend stocks are also part of the S&P/TSX Canadian Dividend Aristocrats Index, making them a reliable bet. 

Capital Power

Capital Power (TSX:CPX) is a North American wholesale power producer focusing on sustainable energy. It owns approximately 7,500 megawatts (MW) of power-generation capacity across 29 facilities. Thanks to its diversified portfolio and competitive fleet of assets, the company generates strong earnings that allow it to boost shareholders’ returns through higher dividend payments. 

The power producer has increased its dividend for nine consecutive years. Furthermore, Capital Power expects to grow its annual dividend by about 6% through 2025. Its strong pipeline of developmental projects, long-life assets, and power-purchase agreements positions it well to deliver strong shareholders’ returns in the coming years. Investors can earn a solid dividend yield of 5.29% by investing in Capital Power stock near the current levels. 

TC Energy 

TC Energy (TSX:TRP) provides the infrastructure to transport natural gas and crude oil. Thanks to its regulated and contracted assets, TC Energy consistently delivers solid cash flows and boosts its shareholders’ returns through higher dividend payments. 

 This energy company has raised its dividend for 23 years in a row. At the same time, its dividend has grown at a CAGR (compound annual growth rate) of 7%. 

Looking ahead, TC Energy forecasts its dividend to increase by 3-5% per annum on the back of its high-quality asset base. Moreover, its utility-like business model, $34 billion secured growth projects, and energy transition opportunities bode well for its future earnings and dividend growth. By investing in TC Energy stock, investors can earn a high yield of 6.56%. 


Fortis (TSX:FTS), undoubtedly, is a must-have dividend stock to earn reliable passive income that will grow with you. It operates a low-risk electric utility business that allows it to enhance its shareholders’ returns through higher dividend payments.

Impressively, Fortis raised its dividend for 49 consecutive years, thanks to its growing rate base. Moreover, the company forecasts its rate base to grow by a CAGR of over 6% through 2027, which will drive its future dividend payments. Fortis expects to grow its dividend at an average annualized rate of 4-6% through 2027. Meanwhile, it offers a well-covered dividend yield of 3.76%. 


Investors can bet on the diversified telecommunications company Telus (TSX:T) for a growing dividend income. Thanks to its profitable growth, Telus has a solid track record of enhancing shareholders’ returns through higher dividend payments and share repurchases. 

Since 2004, Telus has returned about $18 billion to its shareholders through dividend. Meanwhile, through its multi-year dividend-growth program, the company intends to increase its dividend by 7-10% per year. 

Telus’s growing subscriber base, lower churn rate, expansion of 5G services, and investments in network infrastructure will likely drive its earnings and support higher dividend payments. Investors can earn a reliable yield of 4.97% near current levels. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.

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