Dividend stocks are ideal for income-seeking investors in this falling interest rate environment. These companies deliver a stable passive income during retirement and could also help investors beat inflation. Meanwhile, investors should choose stocks carefully, as dividend payouts are not guaranteed and depend on the company’s financial position. Against this backdrop, let’s look at three top Canadian stocks that have consistently raised their dividends at a healthier rate and offer impressive growth prospects, thus making them excellent long-term buys.
Canadian Natural Resources
Canadian Naural Resources (TSX:CNQ) owns and operates large, low-risk, high-value reserves. Its effective and efficient operations and lower capital reinvestment requirements have allowed the company to enjoy a lower WTI (West Texas Intermediate) breakeven price and healthy cash flows. Supported by these healthy cash flows, the company has uninterruptedly raised dividends for 25 years at an annualized rate of 21%. Its forward dividend yield stands at a juicy 5.92% as of the April 14th closing price.
Moreover, CNQ is continuing with its oil sand mining and upgrading activities and has planned to invest around $6.2 billion this year, which could boost its production in the coming quarters. Amid these growth initiatives, the company’s management expects its average total output in 2025 to grow around 4.2%. The increased production could boost its financials and support its dividend growth in the coming years, making it an excellent long-term buy for income-seeking investors.
Enbridge
Enbridge (TSX:ENB) is my second pick. The midstream energy company has been paying dividends uninterruptedly for 70 years. Also, it has raised its dividend at an annualized rate of 9% since 1995 and currently offers a juicy forward dividend yield of 6.18%. Its tolling-frame work, long-term take-or-pay contracts, long-term power-purchase agreements, and low-risk utility assets shield its financials against economic cycles, delivering stable and predictable cash flows.
Meanwhile, Enbridge continues to expand its midstream, renewable, and utility assets through its $26 billion capital investment plan and hopes to put $23 billion of assets into service by 2027. The company acquired three utility assets in the United States last year, improving its cash flow stability. Considering these healthy growth prospects, I believe Enbridge could maintain its dividend growth in the coming years.
goeasy
goeasy (TSX:GSY) is my final pick. The subprime lender has been paying dividends for 21 years and has raised its dividends for the past 11 years at an annualized rate of 29.5%. Its forward dividend yield currently stands at 3.76%. Supported by its full range of product offerings, multiple distribution channels, and geographical expansion, the company has expanded its loan portfolio, driving its top and bottom lines. Over the last 10 years, its revenue and adjusted earnings per share have grown at an annualized rate of 19.4% and 28.7%, respectively.
Despite solid growth over these years, goeasy has acquired around 2% of the $231 billion Canadian subprime market. So, it has a substantial scope to expand its business. Meanwhile, the company raised US$400 million earlier this month, raising its funding capacity to $2.2 billion. Also, the adoption of next-gen credit models and tightening underwriting requirements could lower delinquencies and drive profitability. Considering these growth initiatives, I believe that goeasy could continue raising dividends at a healthy rate.
