Dividend-growth stocks can be powerful tools for investors who want to build sustainable wealth. The income that dividend stocks offer makes them attractive holdings, but there is more to it than just the quarterly income. Many dividend stocks also increase their payouts each year, helping investors earn passive income that can keep pace with inflation.
Businesses with strong cash flows, solid fundamentals, disciplined management, and resilient business models can be some of the top dividend stocks you can own. This past April, several high-quality Canadian stocks demonstrated this strength by increasing dividends. Here are my top picks from those TSX dividend stocks that can be attractive long-term holdings.
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Brookfield Corp.
Brookfield Corp. (TSX: BN) is a $141.88 billion market-cap company that engages in managing public and private investment products and services for institutional and retail clients. Through its subsidiaries, it provides investors with exposure to virtually every segment of the global economy. As one of the leading investment firms worldwide, it focuses on real assets like renewable energy, real estate, infrastructure, and private equity.
The company’s strategy has been successful over the decades, and its dividend growth alone exhibits that. The company recently hiked its quarterly dividend by 16.7%, extending its dividend-growth streak to over a decade. As of this writing, Brookfield stock trades for $63.42 per share and pays US$0.07 per share each quarter, translating to a 0.60% dividend yield. While the payout might seem meagre, it’s the dividend-growth streak that makes it an attractive investment to consider.
Thomson Reuters
Thomson Reuters (TSX: TRI) is a $55.75 billion market-cap multinational conglomerate headquartered in Toronto. The company is famous for providing news and information for professional markets. The company has been a global provider of specialized information for decades. It has recently started foraying into more software and AI-powered solutions that help professionals across various industries.
The demand for data-driven insights keeps growing, making businesses like Thomson Reuters increasingly crucial for the economy. As of this writing, the stock trades for $125.86 per share. It recently increased its payout by 10%, indicating the management’s confidence in its long-term earnings potential.
The stock pays its investors US$0.8911 per share each quarter, translating to a 2.83% annualized dividend yield.
CCL Industries
CCL Industries (TSX: CCL.B) is another dividend-growth stock to keep on your investment radar. The $14.47 billion market cap American-Canadian company describes itself as the world’s largest label maker. The company manufactures and sells packaging and packaging-related products through various business segments.
With over 200 production facilities worldwide, it produces specialty packaging that clients worldwide rely on for their packaging needs. The company serves large global clients across the electronics, healthcare, and consumer packaging markets. Backed by solid demand and a resilient business model, it also boasts an over 20-year dividend-growth streak.
As of this writing, the stock trades for $83.71 per share and pays investors $0.36 per share, translating to an annualized 1.72% dividend yield.
Foolish takeaway
Dividend hikes are often a sign, telling investors that the business they are investing in has a management confident in its operations and financial strength. Companies like Brookfield, Thomson Reuters, and CCL Industries increased payouts recently, exhibiting the same strength as dependable dividend-growth stocks.
For investors building income-focused self-directed investment portfolios, these three TSX stocks can be excellent foundational holdings to consider.
