With inflation still lingering and volatility continuing to dominate the stock market as we head into May, it’s become more important than ever to find high-quality investments that can both protect your capital and grow it. That’s why high-quality Canadian dividend stocks are some of the best investments you can buy right now.
And while high yield stocks can be tempting to buy, typically, the best dividend stocks to own for the long haul are those that consistently increase their payouts.
Dividend growth stocks are ideal because not only do they boost your passive income over time, but they also tend to be high-quality companies with reliable operations that also offer long-term capital gains potential.
So, if you’re looking to add high-quality and reliable stocks to your portfolio to help maximize your long-term returns, here are three of the best Canadian dividend growth stocks to buy today.
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One of the top monthly dividend stocks in Canada
If you’re looking for a steady and growing source of passive income, one of the best dividend stocks you can buy today is CT REIT (TSX: CRT.UN).
CT REIT is a retail REIT with properties all over the country. And while some retail REITs are facing macroeconomic headwinds in the current environment, due to the concerns about a slowdown in consumer spending, CT REIT is a lower-risk investment owing to its relationship with Canadian Tire, one of Canada’s best-known retailers.
First off, Canadian Tire accounts for roughly 90% of the revenue CT REIT earns. However, it’s also the majority owner of CT REIT.
So, although that reliance on Canadian Tire is a bit of a risk, it’s proven over the years that it’s one of the most stable and resilient retailers in the country. Plus, CT REIT has long-term leases in place, which help provide reliable income and have continued to keep its occupancy rate above 99% as of the end of 2024.
What makes CT REIT so attractive, though, is that it doesn’t just pay a reliable distribution every month, it also increases that payout annually. In fact, the REIT has increased its dividend for 11 consecutive years now, every year since it went public. That consistency makes it ideal for long-term investors.
At today’s price, CT REIT offers a yield of 6.3%. And, while it might not offer as much growth potential as some other REITs, its stable operations, consistent monthly income, and growing distribution make it one of the best dividend stocks to buy now.
A reliable utility stock with steady dividend growth
Another excellent dividend growth stock to consider today is Emera (TSX: EMA), the $18 billion utility company. Emera is well known for its defensive operations and long track record of paying and increasing its dividend.
As a utility business, Emera benefits from regulated revenues, which means that the income it earns is stable and predictable. That makes it a great investment to own during periods of uncertainty or higher volatility like we’re seeing today.
Furthermore, in addition to it operating in a regulated industry and offering essential services, Emera’s operations are also diversified geographically with businesses in Canada, the United States, and the Caribbean.
What stands out most about Emera, though, is its dividend. Not only does the stock currently offer investors an attractive yield of just over 4.7%, it has also increased its payout for 18 straight years.
So, if you’re looking for high-quality dividend growth stocks to buy now, Emera is certainly one of the best.
An undervalued financial stock
Finally, another top Canadian dividend growth stock to consider is Manulife Financial (TSX: MFC), one of the largest insurance and financial services companies in the country.
While insurance companies aren’t often the most exciting investments, Manulife has been performing exceptionally well in recent years, especially considering the uncertain market conditions.
In fact, the company’s growth in Asia and strength in its asset management division have helped drive earnings and free cash flow higher, allowing it to return even more capital to shareholders. And right now, Manulife’s dividend is sitting at more than 4.1%.
So if you’re looking for high-quality dividend growth stocks in this uncertain environment and hold for years to come, there’s no question Manulife is one of the best to buy now.
