The Bank of Canada has lowered its benchmark interest rate to 2.75% from 5% in April 2024. Moreover, economists are predicting two more rate cuts this year and expect the benchmark interest rate to fall to 2.25%. In this low-interest environment, investors can look at acquiring quality dividend stocks to boost their passive income. Meanwhile, dividends are not guaranteed and depend on the company’s performance and macroeconomic environment. Therefore, investors should be careful while buying dividend stocks and look at stocks with solid underlying businesses and an excellent track record of dividend growth.
Against this backdrop, let’s look at my three picks that have raised their dividends consistently at healthier rates.
Telus
Telecommunication services have become essential in today’s digital world. Their recurring revenue streams deliver stable and reliable cash flows, allowing them to reward their shareholders with consistent dividend growth. Therefore, I have chosen Telus (TSX:T), one of Canada’s three leading telecom players, as my first pick. The Vancouver-based telco has raised its dividends 28 times since May 2011. It currently pays an annualized dividend payout of $1.665/share, translating into a forward dividend yield of 7.45%.
Moreover, the company continues to expand its customer base amid its compelling bundled services and expanding PureFibre connectivity. Further, the company has planned to invest around $70 billion over the next five years to expand its 5G and broadband connectivity. The company is also working on strengthening its balance sheet. It has recently agreed to sell a 49.9% stake in its newly formed wireless tower infrastructure business, Terrion, to La Caisse for $1.26 billion. Amid this deleveraging initiative, the company expects to bring its net debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio down to three.
Given its healthy growth prospects and improving financial position, Telus could continue with its dividend growth. Meanwhile, the company’s management expects to raise its dividend by 3-8% annually from 2026 to 2028. Additionally, the company currently trades at a reasonable NTM (next-12-month) enterprise value-to-EBITDA multiple of 8.4, making it an excellent buy.
Canadian Natural Resources
Another Canadian stock that has raised its dividends consistently at a higher rate is Canadian Natural Resources (TSX:CNQ). The Calgary-based oil and natural gas producer has increased its dividends uninterruptedly for the last 25 years at an annualized rate of 21%. Its diversified and balanced asset base, high-value reserves, lower capital reinvestment requirements, and effective and efficient operations have brought its breakeven price down. Therefore, the company enjoys healthy financials and cash flows, thereby allowing it to raise its dividends consistently, with its forward dividend yield currently at 5.70%.
Moreover, CNQ has large reserves, with a total proven reserve life index of 32 years. Further, these reserves consist of high-value SCO (synthetic crude oil), light crude oil, and NGLs (natural gas liquids). Additionally, the company is strengthening its production capabilities through a capital investment of $6 billion for this year. Given these growth initiatives, I expect CNQ to be well-equipped to continue paying dividends at a healthier rate.
goeasy
I have chosen goeasy (TSX:GSY), which has raised its dividend at a 29.5% CAGR (compound annual growth rate) for the last 11 years, as my final pick. Since starting its customer lending business in 2006, the Mississauga-based subprime lender has expanded its loan portfolio to $5.1 billion by the end of the second quarter of 2025. These expansions have boosted its top and bottom lines, while generating healthy cash flows. These reliable cash flows have allowed the company to raise its dividend at a healthier rate, with its forward dividend yield currently at 2.79%.
Moreover, goeasy continues to expand its loan portfolio through new customer acquisitions by launching innovative products, venturing into new markets, implementing strategic initiatives, and adding new delivery channels. The company’s management predicts its loan portfolio to reach $7.35-$7.65 billion by the end of 2027, with the midpoint representing a 48% increase from its current levels. Its top line could grow at an annualized rate of 11.4% while improving its operating margin to 43% by the end of 2027. Considering these healthy growth prospects, I believe goeasy could continue raising its dividend in the coming years.
