Market volatility remains on the minds of investors everywhere this week. Fortunately, there are some dividend-growth champions for investors to consider buying right now.
Let’s take a look at some of those dividend growth champions to consider adding to your portfolio.
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Power up your portfolio with some energy
The first stock for investors to consider is Enbridge (TSX: ENB). Enbridge is known for its lucrative pipeline business, which comprises both natural gas and crude segments.
Part of the reason why that pipeline business is so well known is because of the sheer volume being hauled and the amount of revenue the business generates for Enbridge.
To put that volume into context, Enbridge transports one-quarter of all North American-produced crude. Turning to natural gas, Enbridge transports one-fifth of the energy needs of the entire U.S. market.
To say that Enbridge’s vast pipeline network makes it a defensive pick would be an understatement.
But that’s not all Enbridge does. The company also operates a large renewable energy segment. That renewable energy business includes wind, solar, and hydro facilities that are located across Europe and North America.
Similarly, Enbridge operates one of the largest natural gas utilities in North America. The natural gas segment boasts 7 million customers thanks to a slew of acquisitions completed in the past year.
Across all those segments, Enbridge generates a reliable revenue stream that leaves room for growth and its lucrative quarterly dividend. That dividend pays out a 5.8% yield, making it a solid option for income-seeking investors.
Adding to that appeal, Enbridge has provided annual upticks to that dividend going back three decades without fail. That fact alone makes this one of the dividend-growth champions for any portfolio.
Banking on success while on autopilot
It would be near impossible to compile a list of dividend growth champions and not consider at least one of Canada’s big bank stocks. The bank stock for investors to look at right now is Bank of Nova Scotia (TSX: BNS).
Scotiabank isn’t the largest of Canada’s big banks, but it is the most international among its peers. Scotiabank’s international presence, particularly in Latin America, has provided the bank with substantial growth opportunities over the past decade.
More recently Scotiabank has turned its growth focus to the US market and away from more volatile developing markets. This has the potential to provide Scotiabank with a more defensive yet still growth-focused pathway.
Scotiabank’s focus on international markets shouldn’t distract prospective investors from what is a mature and profitable domestic market in Canada. Specifically, Scotiabank’s domestic footprint generates a reliable revenue stream that continues to grow and leaves room for a growing dividend.
As of the time of writing, that growing dividend works out to a very juicy 6.2% yield. This not only makes Scotiabank one of the dividend growth champions to consider right now, but also one of the best dividend stocks on the market.
And like Enbridge, Scotiabank has an established cadence of providing annual upticks to that dividend.
Building on a half-century of increases
As incredible as both Scotiabank and Enbridge are as dividend-growth champions, there is one final stock to note.
Fortis (TSX: FTS) boasts an incredible streak of over 50 consecutive years of dividend increases, making it one of only two Dividend Kings in Canada. That streak also makes the stock hands down one of the best dividend-growth champions on the market.
Adding to that appeal is Fortis’ stable cash flows. As a utility stock, Fortis generates a reliable revenue stream that is both stable and growing. And because of the necessary nature of utilities, Fortis also has significant defensive appeal.
As of the time of writing, Fortis’ yield works out to a respectable 3.7%.
In short, the stock is a must-have for any long-term investor.
Buy these dividend-growth champions now
Investing $15,000 in each of Fortis, Scotiabank, and Enbridge can provide investors with a recurring annual income.
That might not be enough to retire on, but it is enough to generate several shares of each through reinvestments. This will allow any eventual income to continue growing until needed.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio. Buy them, hold them, and watch your income grow.
