Dividend Lovers: 3 Stocks for Long-Term Growth

Dividend lovers can expect long-term growth from three TSX stocks with outstanding dividend track records and enduring businesses.

| More on:
Couple relaxing on a beach in front of a sunset

Image source: Getty Images.

Dividend investors gravitate toward companies that consistently distribute or share their earnings with shareholders. However, three stocks stand out for dividend lovers chasing long-term growth. You can buy one or all and hold them forever.

Premier gold stock

A 2.83% dividend yield is decent, but if the payor is one of the top gold producers in the world, then it should be worry-free. Canada is known for its mining industry and Barrick Gold (TSX:ABX) is the acknowledged captain in the basic materials sector. The $45.4 billion gold and copper producer operates in prolific districts and focuses on high-margin, long-life assets.

Management said it plans for the long term, and Barrick will continuously invest in sustainable growth. It adds that there is a clear growth runway because all mines have 10-year business plans. The operating gold mines (13) are in 10 countries, while three countries host the copper operations (3).

Barrick expects gold production to increase in 2023 (4.2 to 4.6 million ounces) and targets 420 to 470 million pounds in group copper production. Barrick’s exposure to copper is growing, and it plans to capitalize on the fundamental strength of the red metal. The premier gold stock trades at $25.87 per share (+12.16% year to date).

Record operating performance

Imperial Oil (TSX:IMO) is a dividend aristocrat owing to 28 consecutive years of dividend increases. American oil giant ExxonMobil owns 69.6% of this $41.9 billion integrated energy producer. At $71.77 per share, current investors enjoy a +9.52% return year to date on top of the 2.43% dividend yield.

In 2022, net income soared 196% year over year to $7.3 billion, while cash flow from operating activities in Q4 2022 climbed 71% to $2.8 billion versus Q4 2021. Brad Corson, IMO’s Chairman, President and CEO, said, “Our financial results this past year are the strongest in company history, driven by record operating performance across our assets.”

Imperial Oil’s renewable diesel facility, the largest in Canada, is under construction and will start production in early 2025. Corson said the $75 million project would create jobs, help reduce emissions, and enhance low-carbon product offerings.

Stable fundamentals

Savaria Corporation (TSX:SIS), the leader in the accessibility industry, continues to display stable fundamentals in a growing market. The $1 billion company boasts a comprehensive portfolio of mobility products for the physically challenged. Besides elevators and various lifts, it offers adapted vehicles and medical beds.

Its President and CEO, Marcel Bourassa, said Savaria’s key qualities and agility were on full display last year despite business pressures. For fiscal 2022, revenue and net earnings grew 19.4% and 207% year over year to $789.1 million and $35.3 million, respectively.

The Accessibility and Patient Care segment should drive organic growth in fiscal 2023 due to high backlog levels, cross-selling, and strong demand. Management also expects revenue to be between 8% and 10% on projected adjusted EBITDA margins of around 16%. Bourassa said the revenue goal by year-end 2025 is $1 billion.

Savaria beats the broader market year to date, +15.61% versus +6.43%. At $16.04 per share, the dividend offer is 3.2%. This industrial stock is among the handful of TSX companies that pay monthly dividends.

Enduring businesses

Barrick Gold, Imperial Oil, and Savaria are dividend growers whose businesses are enduring and can overcome market volatility. The stocks should add stability to your stock portfolio.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Happy family father of mother and child daughter launch a kite on nature at sunset
Dividend Stocks

Parents: Here’s How to Boost Your Monthly Income

Parents, you have enough to worry about. But if you can put aside even $40 per month, that can create…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Looking for a Reliable Retirement Income? Consider These Dividend-Paying Stocks

Investors looking to establish a reliable retirement income have no shortage of options to choose from. Here's a trio of…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

3 Oversold Dividend Stocks That Could Make You Rich When They Bounce Bank

Don't wait around for these oversold dividend stocks to bounce back, each certainly will, which is why now is the…

Read more »

A small flower grows out of a concrete crack.
Dividend Stocks

Down 8% Last Month, Canadian Tire Stock Is a Deal Heading Into June 2023

May wasn't a good month for the stock, but June has been different from the beginning and may present an…

Read more »

Canadian Dollars
Dividend Stocks

Need Passive Income Right Now? Turn $20,000 Into $152 Every Month

This dividend stock may be down now, but offers substantial passive income through its 9.31% dividend yield as of writing!

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Is Exchange Income Stock a Buy?

Even within an industry, some stocks might be worth considering in certain market conditions, while others may be avoided.

Read more »

Dividend Stocks

2 Top Canadian Value Stocks in June 2023

Canadian Imperial Bank of Commerce (CIBC) stock is a compelling buy in June, and so is this Canadian REIT.

Read more »

Illustration of bull and bear
Dividend Stocks

2 Cyclical Stocks to Buy Before the Next Bull Market

The TSX index has been cyclical in the past 12 months, with neither a bearish nor a bullish trend fully…

Read more »