Dividend stocks help you earn extra cash. Further, the reinvestment of dividends enables you to accumulate more shares, which increases your returns over time. While several Canadian stocks consistently pay dividends, I’ll restrict myself to the ones with insanely fast-growing dividends. Let’s delve into stocks.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is a no-brainer to start a growing income stream. The company is among the leading crude oil and natural gas producers in the world. Its diversified asset base enables it to generate solid fund flows from operations and helps the company to enhance its shareholders’ returns, even in challenging economic environments.
It owns a balanced portfolio of light crude oil, heavy crude oil, natural gas, in-situ oil sands production, oil sands mining, and related upgrading facilities. Further, its cost discipline, solid balance sheet, and ability to internally generate cash flows to support growth opportunities augur well for growth.
Thanks to its high-quality asset base and strong cash flows, Canadian Natural Resources increased its dividend for 23 consecutive years. Impressively, its dividend increased at a CAGR (compound annual growth rate) of 21%.
Its strategic investment in natural gas assets and focus on cost control will likely support its future payouts. Further, the stock offers an attractive yield of 4.4% (based on its closing price of $81.77 on August 8).
goeasy
Next up are the shares of the subprime lender goeasy (TSX: GSY). This financial services company has grown its revenues and earnings at a solid double-digit rate, enabling it to boost its shareholders’ returns through higher dividend payments.
Impressively, goeasy’s top line has grown at a CAGR of 17.7% from 2012 to 2022. During the same time, its adjusted EPS (earnings per share) increased by a CAGR of 29.5%. It’s worth highlighting that in February 2020, goeasy became a member of the S&P/TSX Canadian Dividend Aristocrats Index for growing its dividend at a CAGR of 42% in the prior five years.
Overall, goeasy has paid a dividend for 19 years and increased it for nine consecutive years. Further, its annual dividend per share increased from $0.90 in 2018 to $3.84 in 2023. This represents a growth of a whopping 327%. Looking ahead, its high-quality loan originations, steady credit performance, and operating efficiency will drive its revenue and earnings at a double-digit rate, supporting higher dividend payments. The stock is yielding about 2.9%, near the current price levels.
Toronto-Dominion Bank
I’ll wrap up with Toronto-Dominion Bank (TSX: TD). The financial services giant has a stellar dividend payment and growth history. Notably, Toronto-Dominion Bank has been paying a dividend for 166 years. Furthermore, it has increased its dividend at a CAGR of 11.2% in the past 25 years, the highest among its peers. Impressively, it increased its dividend by 13% in 2022.
The firm’s diversified revenue base and ability to expand its asset portfolio help it to generate solid top-line growth. Further, improved sales, stable credit quality, and focus on driving efficiency help it to grow its earnings at a decent pace. Besides organic growth, Toronto-Dominion Bank also benefits from its strategic acquisitions.
Overall, its solid track record of dividend payments and growth, growing earnings base, and a sustainable payout ratio of 40-50% make it a top stock to own for a growing income stream. Investors can earn a yield of about 4.5% by investing in Toronto-Dominion Bank stock near the current price levels.
