4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever

These four Canadian stocks with high dividend growth could boost your passive income while stabilizing your portfolio.

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Dividend stocks tend to outperform the broader equity markets in the long term. Supported by solid underlying businesses and stable cash flows, these stocks reward their shareholders through regular payout. So, they provide a steady passive income and stability to investors’ portfolios. Having seen the benefits of dividend stocks, here are four top Canadian stocks with high dividend growth that you can buy right now.


Enbridge (TSX:ENB) operates a low-risk midstream energy business, with only 2% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) impacted by commodity price fluctuation. So, the company’s cash flows are predictable, thus allowing it to raise its quarterly dividends at a CAGR (compound annual growth rate) of over 10% for the previous 28 years. Currently, its forward yield stands at an attractive 7.75%.

Further, the midstream company acquired three gas utility facilities in the United States for around $19 billion last week. The acquisition could substantially boost its cash flows, thus strengthening its long-term dividend growth. The company has a healthy pipeline of secured growth projects, which could also support its financial growth in the coming years. So, given its healthy growth prospects and solid underlying businesses, I believe Enbridge is well positioned to maintain its dividend hikes in the coming years.

Canadian Natural Resources

Canadian Natural Resources (TSX:CNQ) owns and operates a diversified portfolio of oil and natural gas-producing assets across North America, the North Sea, and Africa. Given its low-decline, long-life asset base, the company generates stable free cash flows even in a lower-price environment, thus allowing it to maintain its dividend growth. The oil and natural gas producer has raised quarterly dividends for the previous 23 years at an annualized growth rate of 21%, while its forward yield stands at a healthy 4.18%.

Further, analysts are projecting oil prices to remain elevated in the near to medium term. The company is strengthening its asset base by investing $5.4 billion this year. Supported by these investments and solid organic growth, the company’s management hopes to increase its total production by 5.5% this year. So, with a higher realization price and increased production, I expect CNQ to continue with its dividend growth.


Third on my list is goeasy (TSX:GSY), which provides leasing and lending services to subprime customers. The company has been growing its topline and adjusted EPS (earnings per share) at a CAGR of 17.7% and 29.5%, respectively. These strong performances have led the company to raise its dividends at an annualized rate of over 30% for the last nine years, with its forward yield currently at 3.16%.

Meanwhile, the subprime lender is also working on mitigating the impact of lowering the maximum allowable interest rate through products and pricing enhancements. The company’s management projects its loan portfolio to grow by 60% to $5.1 billion by 2025. The expansion of the loan portfolio could drive its cash flows, thus making its future payout safer.

Pizza Pizza Royalty

When many restaurants are struggling due to the inflationary environment, Pizza Pizza Royalty (TSX:PZA) has raised its monthly dividends seven times since March 2020. Given its highly franchised business model, rising prices and wage inflation have not hurt its royalty income. Meanwhile, the company continues to deliver strong financials as its menu innovations, promotional activities, and value messaging have boosted its same-store sales and royalty income.

The company has planned to increase its restaurant network by 3-4% this year and is also focusing on renovating its old restaurants. So, I expect the company’s royalty income to grow, thus allowing the management to reward its shareholders by paying dividends at a healthier rate. Currently, the company pays a monthly dividend of $0.075/share, with a forward yield of 6.28%.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.

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