3 Dividend Growth Stocks to Buy With Yields of 6% or More

These three top TSX stocks offer both dividend growth and sky-high yields, making them some of the best to buy now.

There’s no question that some of the best investments to buy for long-term wealth building are dividend growth stocks. They offer the perfect balance of passive income today and the potential for consistent growth in the future.

Furthermore, high-quality dividend growth stocks – those with reliable operations, a strong track record of increasing their payouts, and a generous yield that adds significant value to your portfolio – are stocks you can buy and hold for decades.

So, if you’re looking for top-notch investments to help grow your passive income, here are three of the best dividend growth stocks to buy right now, each with a yield of 6% or more.

dividend growth for passive income

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A leading renewable energy stock

Plenty of industries offer significant long-term growth potential, but one of the best to buy into today is green energy. Furthermore, while there are plenty of high-quality companies to consider, few companies in the green energy sector can match the scale and growth potential of Brookfield Renewable Partners (TSX: BEP.UN).

With global investments in renewable energy accelerating, Brookfield Renewable is perfectly positioned to deliver both stable income and long-term growth, making it one of the best dividend growth stocks to buy now.

Plus, as one of the largest renewable energy platforms in the world, Brookfield owns and operates hydroelectric, wind, solar, and energy storage assets across multiple continents, ensuring stable and diversified operations. This is one of the most significant reasons why it’s one of the best dividend stocks to buy now.

In addition, Brookfield’s strong track record is one of its most attractive features. Management targets total returns of 12% to 15% annually over the long term, underpinned by consistent growth in cash flows. Additionally, the company aims to increase its distribution by 5% to 9% annually, offering investors consistent passive income growth.

Therefore, with Brookfield trading off its highs and offering a current dividend yield of 6%, well above its five-year average forward yield of 4.4%, it’s undoubtedly one of the best dividend growth stocks to buy now.

A top telecom stock with impressive dividend growth

When it comes to stable income and consistent dividend growth, Telus (TSX: T) is one of the best stocks you can buy now.

As one of Canada’s leading telecom providers, Telus offers millions of customers essential services like wireless, internet, and TV, generating massive and predictable cash flow every quarter.

So it’s no surprise, given the consistent cash flow generation, that one of Telus’s key attributes is its impressive track record of dividend increases.

As Telus continues to expand its operations and consequently generate more and more cash flow, the company has consistently raised its payout. Furthermore, after Telus’ shares have sold off in recent weeks, the dividend yield has now climbed to a hopping 8.4%, significantly higher than its five-year average of 5.5%.

Plus, in addition to its dependable dividend, Telus is positioned for growth through its ongoing investments in 5G technology, fiber-optic infrastructure, and innovative digital businesses like health and agriculture technology.

Therefore, when you consider its growth potential, sustainable dividend and ultra-cheap valuation today, it’s clear that Telus is one of the best dividend growth stocks to buy today.

A top dividend growth stock to buy in the energy sector

In addition to Brookfield and Telus, a list of the best dividend growth stocks to buy in Canada would not be complete without Enbridge (TSX: ENB), the energy infrastructure giant.

Few stocks in Canada are as reliable as Enbridge. With its vast network of pipelines transporting oil and natural gas across North America, Enbridge generates steady cash flows backed by long-term contracts and regulated operations.

Furthermore, Enbridge has skillfully diversified its operations to mitigate risk while maintaining a focused approach that preserves synergies and maximizes cost savings.

Therefore, with all the consistent cash flow generation, Enbridge is constantly reinvesting in future growth and returning cash to investors. Right now, Enbridge offers a compelling dividend yield of 6.3%.

Furthermore, in addition to the impressive yield, Enbridge also keeps its payout ratio low to ensure the dividend’s sustainability going forward, a key reason why it’s been able to increase its dividend for 29 consecutive years now.

So if you’re looking for high-quality stocks to buy and hold long term, there’s no question Enbridge is one of the best dividend growth stocks to buy now.

Fool contributor Daniel Da Costa has positions in Enbridge. The Motley Fool recommends Brookfield Renewable Partners, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

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