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

grow money, wealth build
Dividend Stocks

1 Top Dividend Stock That Can Handle Any Kind of Market (Even Corrections)

While most dividend aristocrats can maintain their payouts during weak markets, very few can maintain a healthy valuation or bounce…

Read more »

Red siren flashing
Dividend Stocks

Income Alert: These Stocks Just Raised Their Dividends

Three established dividend-payers from different sectors are compelling investment opportunities for income-focused investors.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top Canadian Dividend Stocks to Buy Under $50

Top TSX dividend stocks are now on sale.

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Dividend Stocks

Index Funds or Stocks: Which is the Better Investment?

Index funds can provide a great long-term option with a diverse range of investments, but stocks can create higher growth.…

Read more »

A stock price graph showing declines
Dividend Stocks

1 Dividend Stock Down 37% to Buy Right Now

This dividend stock is down 37% even after it grew dividends by 7%. You can lock in a 6.95% yield…

Read more »

ETF chart stocks
Dividend Stocks

Invest $500 Each Month to Create a Passive Income of $266 in 2024

Regular monthly investments of $500 in the iShares Core MSCI Canadian Quality Dividend Index ETF (TSX:XDIV), starting right now in…

Read more »

edit Sale sign, value, discount
Dividend Stocks

2 Top Canadian Stocks Are Bargains Today

Discounted stocks in a recovering or bullish market are even more appealing because their recovery-fueled growth is usually just a…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

TFSA Investors: Don’t Sleep on These 2 Dividend Bargains

Sleep Country Canada Holdings (TSX:ZZZ) stock and another dividend play in retail are looking deep with value.

Read more »