Investors looking for stocks that will keep paying them year after year should consider Canadian Dividend Aristocrats. These Canadian stocks have consistently paid and increased their dividends for five years or more. Notably, some of these Aristocrats are also blue-chip stocks with established businesses and a growing income stream, allowing them to consistently pay and increase their payouts.
Against this background, let’s look at three dividend stocks that are likely to increase their dividends uninterruptedly in the coming years.
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Fortis stock
Utility company Fortis (TSX:FTS) is known for rewarding its shareholders with higher dividend payments. It has paid and increased its dividend for 51 consecutive years and plans to increase it by 4-6% annually through 2029. The reliability of its payouts makes Fortis a compelling income stock.
Fortis has committed to a $26 billion capital investment plan to fuel further growth. This plan will help grow its rate base by 6.5% each year until 2029. This expansion will support the company’s earnings, enabling Fortis to keep raising its dividends year after year.
Fortis is also diversifying its assets and investing in cleaner energy sources, which will help it capitalize on energy transition opportunities. At the same time, the company is strengthening its infrastructure, which will help it deliver sustainable growth.
Overall, Fortis’s resilient business model, regulated operations, growing rate base, predictable earnings, and commitment to reward shareholders make it one of the top Dividend Aristocrats in Canada.
Enbridge stock
Enbridge (TSX:ENB) is among the leading dividend-paying companies in Canada. It transports oil and gas, and its liquid pipelines connect major supply and demand areas. Thanks to its high-quality energy infrastructure assets, Enbridge benefits from higher utilization of its extensive network and generates solid distributable cash flows (DCF) that support its payouts.
Enbridge has been paying dividends for over 69 years and has consistently raised them for over 29 years.
Enbridge’s diversified revenue sources, extensive liquid pipelines, long-term contracts, power-purchase agreements, and regulated cost-of-service tolling frameworks enable it to generate steady earnings and DCF. Looking ahead, Enbridge is poised to benefit from its diversified portfolio across conventional and lower-carbon energies and low-risk cash flows. Moreover, strategic acquisitions are likely to support its earnings and dividend payouts.
Canadian Natural Resources stock
Investors could consider Canadian Natural Resources (TSX:CNQ) stock for its solid record of dividend payments and growth. The oil and gas producer uninterruptedly increased its dividend for 24 years. Moreover, its dividend grew at an average annualized growth rate of 21%. Its ability to pay and increase its dividend at a higher rate makes Canadian Natural Resources a leading stock to start a growing passive-income stream.
Canadian Natural Resources’s well-balanced portfolio of long-life, low-decline production assets helps reduce risk and enables efficient capital allocation. Further, operating efficiency and low reserve replacement costs support its adjusted funds flow growth across commodity price cycles.
The company also maintains a solid inventory of low-capital exposure projects, which are likely to accelerate its growth in the coming years. Moreover, its large land base augurs well for future growth. Overall, Canadian Natural Resources is well-positioned to generate sustainable earnings, supporting its higher dividend payments.
