If you’re looking for solid dividend stocks, you’re going to want ones that offer growth potential and a steady stream of income. In that case, investors might want to double up on North West Company (TSX:NWC), Brookfield Infrastructure Partners (TSX:BIP.UN), and Dollarama (TSX:DOL). Each of these companies presents an excellent opportunity for long-term investors seeking stability and attractive dividends. Let’s explore why they’re worth considering.
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NWC stock
North West Company is a well-established retail company that primarily serves remote northern communities. In its most recent earnings report, NWC stock saw a slight dip in quarterly earnings growth. Yet overall, the dividend stock remains strong with $2.5 billion in trailing 12-month revenue.
The company has a reliable dividend history, offering a forward annual dividend rate of $1.60 with a yield of about 3.1%. Given its consistent focus on profitability, which includes a 5.3% profit margin and strong management with an 8.7% return on assets, NWC remains a solid pick for dividend investors.
BIP stock
Brookfield Infrastructure Partners stands out for its diversified portfolio of essential infrastructure assets. These include utilities, transport, energy, and data infrastructure. Despite a slight dip in net income over the last quarter, the dividend stock’s revenue grew by an impressive 20.7% year over year.
Its forward dividend yield of 4.4% makes it a favourite among dividend investors. Management has done an exceptional job of maintaining operational efficiency, with an operating margin of 22.8%. Its hefty cash flow and ability to manage significant infrastructure investments give BIP.UN strong future prospects. Especially with the ongoing global focus on infrastructure improvements.
DOL stock
Dollarama stock is a household name in Canadian retail for a reason, providing customers with affordable everyday goods. The dividend stock has performed exceptionally well, reporting16.3% quarterly earnings growth year over year.
Dollarama offers a smaller dividend yield compared to NWC and BIP.UN, with a trailing dividend yield of 0.23%. However, the dividend stock’s aggressive growth strategy, coupled with its consistent profitability (17.9% profit margin), makes it a compelling option for investors seeking both growth and income. Management’s impressive 156.5% return on equity highlights their strong commitment to delivering shareholder value.
More to come
All three of these dividend stocks certainly have more reasons to double up on them right now. NWC has been expanding its presence in underserved markets, ensuring future growth opportunities despite inflationary pressures. Brookfield Infrastructure has been actively pursuing acquisitions and infrastructure projects worldwide, with its strategic investments paying off in sectors like data centres and renewable energy. Dollarama, meanwhile, continues to ride the wave of consumer demand for affordable goods, benefiting from inflation-weary shoppers seeking value.
Looking ahead, all three companies are poised for growth. NWC’s focus on cost control and expanding services in niche markets should help sustain their earnings. BIP.UN, with its diversified portfolio, is well-positioned to capitalize on global infrastructure demand. And with the ongoing push for sustainability, Brookfield’s investments in clean energy will likely pay off. As for Dollarama, its expansion of new stores and efficient cost structure promises steady earnings growth, thus making it a reliable stock for both growth and dividends.
Bottom line
These three dividend stocks are all solid choices for long-term dividend investors. Each company brings something unique to the table – whether it’s NWC’s steady presence in remote communities, BIP.UN’s diversified global infrastructure portfolio, or Dollarama’s growth-driven approach to retail. With a strong history of dividends, growth potential, and solid management, these dividend stocks are definitely worth doubling up on for anyone looking to build a robust dividend portfolio.
