Prime Dividend Picks: Canadian Stocks for Consistent Income Growth

Investors should target Canadian stocks with strong dividend-growth streaks like TC Energy (TSX:TRP) in the middle of July.

A Canadian Dividend Aristocrat is a stock that has delivered at least five consecutive years of dividend growth. Today, I want to target Canadian stocks that qualify as the top Dividend Aristocrats on the TSX. Indeed, I want to scoop up equities that have achieved at least 20 straight years of income growth. Let’s jump in.

This Canadian stock has delivered an impressive income streak and offers a great yield

TC Energy (TSX: TRP) is a Calgary-based energy infrastructure company. Its shares have dropped 4.6% month over month as of early afternoon trading on Thursday, July 13. That has dragged this Canadian stock into negative territory so far in 2023. Investors can see more of its recent performance with the interactive price chart below.

Investors can expect to see this company’s second batch of fiscal 2023 earnings before the market opens on July 28. In the first quarter of fiscal 2023, TC Energy reported net income of $1.3 billion, or $1.29 per common share — up from $0.4 billion, or $0.36 per common share, in the previous year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. TC Energy last posted comparable EBITDA of $2.77 billion compared to $2.38 billion in the first quarter of fiscal 2022.

Shares of this Canadian stock are currently trading in middling value territory at the time of this writing. TC Energy has delivered 22 consecutive years of dividend growth. It offers a quarterly distribution of $0.93 per share. That represents a super 7.1% yield.

Don’t sleep on this industrial beast with a good dividend-growth history

Finning International (TSX: FTT) is a Vancouver-based company that sells, services, and rents heavy equipment, engines, and related products in Canada, Chila, Bolivia, and around the world. Shares of this Canadian stock have jumped 6.8% month over month at the time of this writing. The stock has climbed 23% in the year-to-date period.

This company released its first-quarter fiscal 2023 results on May 8. Finning delivered revenues of $2.4 billion — up 22% compared to the prior year. Moreover, earnings per share increased 51% year over year to $0.89. Adjusted EBIT surged 54% compared to the first quarter of fiscal 2022 to $216 million.

Finning last had a favourable price-to-earnings (P/E) ratio of 11. The Canadian stock has achieved 21 straight years of dividend growth. It offers a quarterly distribution of $0.25 per share, which represents a 2.3% yield.

One more Canadian stock and Dividend Aristocrat to target today

Metro (TSX: MRU) is the third Canadian stock and Dividend Aristocrat I’d look to snatch up as we approach the midway point in July. This Montreal-based company operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors across Canada. Shares of Metro have jumped 3.6% over the past month. The stock is still down 3.9% in the year-to-date period.

In the second quarter of fiscal 2023, the company posted sales growth of 6.6% to $4.55 billion. Meanwhile, adjusted net earnings climbed 10% year over year to $225 million. Adjusted diluted earnings per share jumped 14% to $0.96.

Shares of Metro possess a solid P/E ratio of 19. This company has achieved 28 consecutive years of dividend growth. It offers a quarterly dividend of $0.302 per share, representing a modest 1.6% yield.

Fool contributor Ambrose O'Callaghan 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.

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