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.
