3 Stocks Set for Dividend Increases This Year

Here are three TSX stocks that are set to increase their dividends later this year.

| More on:

Wouldn’t it be reassuring to hold a group of stocks that tend to increase their dividends every year? Receiving dividends and increasing income is certainly something to look forward to. Here are three TSX stocks that are set to increase their dividends later this year, with one raising its dividend as soon as next month!

Empire

You might have shopped at Empire’s (TSX:EMP.A) grocery stores this week. Its list of banners includes, but is not limited to, Safeway, Sobeys, Thrifty Foods, IGA, Longo’s, Farm Boy, Lawtons Drugs, etc. Although the dividend stock’s yield is below 2.2%, at $33.74 per share at writing, it is a top dividend-growth stock on the TSX with 29 consecutive years of dividend increases.

For your reference, its 20-year dividend-growth rate is 9.1%, while its last dividend hike was 10.3%. According to its usual dividend increase schedule, investors can look forward to its upcoming dividend hike within a month! The hike should be around 7-10%. At the recent quotation, Empire stock trades at a reasonable price-to-earnings (P/E) ratio of about 12.3.

Fortis

Fortis (TSX:FTS) is a blue-chip stock to buy on meaningful dips for passive investors. It has increased its dividend for half a century, and it’s about to increase its dividend again later this year. The dividend declaration will come sometime in September, according to its usual dividend-hike schedule.

Because of higher interest rates since 2022, the cost of capital has increased, growth is lower, and the valuation of Fortis stock has come down to the current P/E of about 17.4 at $54.43 per share at writing. Normally, it could trade at about 19.4 times. So, one could say it is fairly valued in today’s higher interest rate environment.

At the recent quotation, the utility stock offers a dividend yield of 4.3%. Although growth has slowed, management still expects to increase the dividend by 4-6% per year over the next few years. So, assuming a 4% dividend hike in September, the forward yield is about 4.5%, which is not bad.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) stock has done a wonderful job by making long-term investors richer. For example, in the last five years, it almost doubled investors’ money, delivering higher returns than the Canadian stock market (using iShares S&P/TSX 60 Index ETF as a proxy) and the Canadian consumer staples sector (using iShares S&P/TSX Capped Consumer Staples Index ETF as a proxy), as shown in the YCharts below.

XIU Total Return Level Chart

XIU, XST, and ATD Total Return Level data by YCharts

Although Couche-Tard offers a small dividend yield of about 0.9%, the global convenience store consolidator has been a diligent dividend grower. Its 15-year dividend-growth rate is about 24%, while its last dividend hike was 25%. Investors can look forward to another dividend increase in late November based on its usual dividend-hike schedule.

At $80.55 per share at writing, the consumer staples stock appears to be fairly valued. Notably, Couche-Tard will be reporting its fiscal fourth-quarter and full-year results on June 25. Interested investors could wait for the latest results and outlook to come out before buying shares.

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 Kay Ng has positions in Alimentation Couche-Tard and Fortis. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

woman retiree on computer
Dividend Stocks

Should You Buy Telus Stock at $20?

Down 40% from all-time highs, Telus is a beaten-down TSX dividend stock that trades at a discount to consensus price…

Read more »

top TSX stocks to buy
Dividend Stocks

Here’s Exactly How $15,000 in a TFSA Could Grow Into $200,000

Canadians with sizeable TFSA balances today have utilized the full potential of the investment vehicle.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

The 1 Canadian Stock I’d Buy and Hold Forever in a TFSA

Don't get complicated. Consider this Canadian stock as a long-time buy.

Read more »

Man data analyze
Dividend Stocks

A Top-Performing U.S. Stock That Canadian Investors Really Should Own

This top US tech stock is something you cannot miss out on, and there’s another from Canada that you need…

Read more »

how to save money
Dividend Stocks

3 Premium TSX Dividend Stocks Worth Loading Up On

These three premium TSX dividend stocks remain among the best bets for long-term investors seeking stable total returns.

Read more »

Hand Protecting Senior Couple
Dividend Stocks

3 Canadian Dividend Stocks Perfect for Retirees

These three Canadian stocks are ideal for retirees.

Read more »

Middle aged man drinks coffee
Dividend Stocks

Should You Buy Goeasy Stock While It’s Below $170?

Goeasy stock still looks like a winner, so why is the stock price down below $170?

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Maximizing Your TFSA: Smart Investment Moves for 2025

Stocks like Enbridge provide significant dividend income, which is ideal for tax-savings within your TFSA.

Read more »