2 Incredible Dividend Growers to Buy Hand Over Fist in March

Are you looking for stocks that could help you increase the amount of passive income you generate? Here are two dividend growers to buy in March!

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Dividend stocks are an excellent strategy for the everyday investor. It helps people like you and me generate passive income. What’s amazing about these kinds of stocks is that they lower the barrier to entry for passive-income generation. Think of all the other ways you can generate reliable passive income. Right away, I can think of real estate or owning a business. However, it’s so difficult for the everyday person to get into those things.

By investing in dividend stocks, investors can receive a reliable distribution on a recurrent basis. This is usually in the form of a quarterly dividend; however, monthly or annual dividends exist as well.

When looking for dividend stocks to hold in your portfolio, it’s important to consider whether a company has been able to increase its dividend over time. This is because a dividend that can’t grow will result in a loss of buying power over time (due to inflation). Generally, I look for stocks that have a dividend-growth rate of at least 5%. That’s more than twice the long-term rate of inflation.

In this article, I’ll discuss two great dividend growers that investors should buy hand over fist in March.

A massively important company

Canadian National Railway (TSX:CNR) is the first stock that investors should consider buying for its dividend. This is one of the largest railway companies in North America, operating across 33,000 kilometres of track. Canadian National Railway’s rail network is massive. Across Canada, it stretches from British Columbia to Nova Scotia. Many Canadians may not know that this company also operates in the United States as far south as Louisiana.

A Canadian Dividend Aristocrat, Canadian National Railway has been raising its dividend distribution for more than two decades. Over that period, this stock’s dividend distribution has seen a compound annual growth rate (CAGR) of over 15%. Compared to the inflation rate, shareholders have seen their dividends grow very quickly. This stock has also gained about 49% (dividends excluded) over the past five years. Any way you look at it, Canadian National Railway is a great option.

Another great stock for your portfolio

Alimentation Couche-Tard (TSX:ATD) is another great dividend payer to consider buying today. For those that don’t know this company, it operates convenience stores. If you’ve never heard of Alimentation Couche-Tard, perhaps you recognize some of the other names it operates under. This includes On the Run, Circle K, Dairy Mart, and many more. All considered, Alimentation Couche-Tard operates over 16,700 locations across 29 countries.

Another Canadian Dividend Aristocrat, Alimentation Couche-Tard boasts a very impressive growth rate. Since 2005, this stock’s dividend has grown at a CAGR of more than 23%. Imagine, you invest in this company and see its dividend increase almost by a quarter of its value every year. Perhaps even more impressive, Alimentation Couche-Tard’s payout ratio stands at about 14.5%. That means the company could continue to comfortably raise its dividend for years to come.

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 Jed Lloren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

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