The focus on dividend stocks is increasing for many investors right now. Declining bond yields in Canada as a result of the Bank of Canada cutting rates is bleeding through to many companies paying reasonable yields. The three dividend stocks I’m going to discuss in this article pay meaningful yields but also provide a solid long-term growth profile.
Accordingly, for those seeking meaningful total returns over the long term, here’s why I think these stocks are worth considering right now.
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Restaurant Brands
Restaurant Brands (TSX: QSR) is a global quick-service company headquartered in Canada. Its activities involve operating, owning and franchising a fast-food restaurant network. In addition, the company owns some famous brands, such as Tim Hortons, Popeyes Louisiana Kitchen, Burger King, and Firehouse Subs.
In the first quarter of 2024, Restaurant Brands reported an increase in its consolidated comparable by 4.6%. It also witnessed a net restaurant growth of 3.9% over the period. In addition, Restaurant Brands International reported a net income of US$328 million, representing significant growth from its previous year’s total of US$277 million.
Restaurant Brands aims to provide double-digit returns to the shareholders over the next five years. All its four iconic brands have strong fundamentals and capability to grow their business operations. With a dividend yield of 3.4%, this is a dividend stock with the potential to continue growing its distributions over time that’s worth considering.
Manulife Financial
Manulife Financial (TSX: MFC) offers an extensive range of financial protection and wealth and asset management services and products for corporate customers and individuals. Headquartered in Canada, Manulife Financial offers mutual funds, annuities, education savings plans and other investment schemes.
In the first quarter of 2024, Manulife Financial reported core earnings of US$1.8 billion, a rise of 16% year over year. In addition, its core earnings per share for the period was US$0.94, and net income attributed to shareholders amounted to US$866 million.
Currently trading around $36 per share, Manulife Financial is one of the best stocks long-term dividend investors can focus on. With a yield of around 4.3%, this is a stock that’s proven to be a worthwhile holding, particularly on past dips. If the stock dips from its current levels (near all-time highs),
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX: ATD) operates a network of convenience stores in Europe and North America. It offers food, non-food items, and transportation fuels. The company is headquartered in Canada and offers services to retail, commercial, and industrial customers across the region.
For the fiscal year 2024, Couche-Tard reported an operating income of US$3.8 billion, with substantial earnings growth driven by the company’s core operations and joint ventures. Furthermore, the net cash provided by operating activities amounted to US$4.8 billion for the period.
Opened its first convenience store in 1980, Alimentation Couche-Tard has grown exponentially over the years. It has recently acquired approximately 2,000 retail assets in Germany and the Benelux. This showcases Couche-Tard’s strong presence in the global market, which helps to generate enormous profits. Hence, now may be a good time to pick up shares of this dividend-growth stock, currently yielding 0.9%.
