Munching on passively earned dividend income is one of life’s great pleasures – especially when you’re retired. Many top Canadian dividend-paying companies understand this, which is why they regularly boost the regular payouts they send to shareholders. Some dividend giants have turned raises into an art form. Canadian Utilities (TSX:CU) stock has increased its dividend for 54 consecutive years. Fortis (TSX:FTS), another TSX-traded utility stock, isn’t far behind with 52 straight years of rising dividend payouts.
But here’s the thing: CU stock currently yields just 3.8%. So what has half a century of dividend growth actually done for long-term investors? Let’s forget 1972 for a moment (the year when CU stock’s dividend growth streak began with a split-adjusted $0.065 annual dividend). Instead, zoom in on the past 30 years – a timeframe that feels real for anyone retiring today.
An investor who bought CU stock in April 1996 at a split-adjusted price of $6.60 per share would be collecting a $1.85 annualized dividend in 2026. That’s a staggering 28% yield on their original cost! Early investors get back their entire initial investment every 3.5 years from dividends alone. Any future payout hikes just pile on top.
The secret? Buy a quality Canadian dividend stock with strong earnings and growing cash flow, even when it offers a low yield, and hold tight for the longest time.
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2 TSX dividend growth stocks that raised payouts recently
While some companies announce dividend hikes with great fanfare, others are quietly building their own impressive track records. Here are two Canadian dividend growth stocks you may have missed: Power Corporation of Canada (TSX:POW) stock and BRP Inc. (TSX:DOO) stock.
| Company | Dividend Raise | Date | Dividend Growth Streak | Current Yield |
| Power Corporation of Canada (TSX:POW) | 9% | March 18, 2026 | 11 years | 3.9% |
| BRP Inc. (TSX:DOO) | 16.3% | March 26, 2026 | 5 years | 1.0% |
Power Corporation: A 9% hike that doubled the dividend in a decade
Power Corporation of Canada is a $40 billion financial conglomerate with fingers in insurance and asset management. On March 18, 2026, it raised its dividend by 9% – marking 11 consecutive years of payout growth.
The company is also ramping up share buybacks to fight a persistent “conglomerate discount.” At writing, POW stock trades at a 20% discount to its net asset value (NAV) of $85.77 per share. That’s a potential bargain hiding in plain sight.
The recent hike lifts POW’s yield to 3.9%. But for investors who bought the conglomerate’s stock a decade ago, the yield on cost is now a juicy 8.8% after the dividend has doubled over those 10 years. That dividend growth helped turn a 135% capital gain into a 298% total return.
BRP joins an elite club of TSX dividend stocks
Recreational vehicle maker BRP Inc. – the company behind Ski-Doo, Lynx, and Sea-Doo – raised its quarterly dividend by 16.3% to $0.25 per share in March 2026. That marked five consecutive years of dividend growth, earning DOO stock a spot in the prestigious S&P/TSX Canadian Dividend Aristocrats Index this past February.
BRP’s dividend has now grown 127% since December 2020, recovering smartly from a COVID-19 disruption. And it achieved this despite early sales threats from U.S. tariffs once introduced in 2025. Fiscal year 2026 (ended January) saw sales rise 6.8% to US$8.4 billion, with normalized earnings per share up 7.2% – beating management’s own guidance.
Management felt confident enough to raise the dividend again as it projects strong adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) to grow 40% this quarter.
Yes, DOO stock’s current yield is only 1%. That’s what happens when shares have soared 164% over the past decade. You don’t buy BRP for passive income today – but the rising payout has helped push 10-year total returns past 180%.
The Foolish bottom line
Consistent dividend growth is a telltale sign of a strong, well-run profitable business with stable cash flow. Whether you’re chasing a 28% yield on cost like long-term CU stockholders or betting on the next dividend champion like BRP, the formula is simple: buy quality, hold tight, and let those dividend raises compound. Your future retired self will thank you for creating a passive income source for the golden years.
