Investing in dividend stocks can be very rewarding. That’s because dividend investors tend to receive payments on a recurring basis. If you ask me, that’s a great incentive to continue buying shares in those companies. However, when looking at dividend stocks to buy, it may not always be clear which companies could be the better option. For example, should investors focus on growth or consistency?

In my opinion, that’s not the right way to look at it. Yes, both are important. In an ideal world, you’d want both of those qualities in the dividend stocks you hold. However, you don’t necessarily need to choose one or the other. In this article, I will give examples of stocks that can give you growth or consistency. You’ll see why both are great for their own reasons.

Dividend stocks that offer great growth

Dividend growth can be viewed in two ways. You can look at it in terms of how fast a dividend grows, or you can look at it in terms of how often a stock increases its dividend. If we focus on the former, we can consider a company like Canadian National Railway (TSX:CNR). This company needs very little introduction. One of Canada’s most recognizable companies, Canadian National Railway operates about 33,000 km of track.

In 1996, Canadian National Railway paid investors a quarterly dividend of $0.016667. Today, this company’s quarterly dividend is $0.845 per share. That represents a compound annual growth rate of about 15%. To put that into perspective, the annual inflation rate is about 2%. That means Canadian National Railway shareholders have seen their dividends grow much faster than inflation. That allows them the ability to increase buying power over time.

If you’re looking for a stock that can provide growth each year, then consider a company like Fortis (TSX:FTS). This is a utility company that serves more than three million customers across North America. Fortis is well known among investors for its outstanding dividend growth.

This company has increased its dividend distribution in each of the past 50 years — a Canadian Dividend Aristocrat — which gives it the second-longest active dividend-growth streak in Canada. Fortis has already announced its plans to continue growing its dividend through to 2028. Very few companies can boast a dividend-growth streak like Fortis, so it’s certainly a dividend stock that deserves some consideration, in my opinion.

Any way you look at it, dividend growth is clearly a quality that investors should consider.

A dividend stock that you can rely on

While there are certainly benefits in looking at dividend stocks in terms of growth, looking for consistent or reliable dividend stocks isn’t the wrong way to go about it either. Consider a company like Bank of Nova Scotia (TSX:BNS). This is one of Canada’s largest banks and another one of our country’s most well-known companies.

Bank of Nova Scotia first started paying shareholders a dividend on July 1, 1833. Since then, it has never missed a single dividend payment. That represents nearly 191 consecutive years of continued dividend distributions. This feat becomes even more impressive when you consider how many periods of economic uncertainty (e.g., recessions) have occurred over that period.

If I’m looking for dividend stocks that could continue to pay me over the coming years, Bank of Nova Scotia is certainly on that list.

The post Dividend Stocks: What’s Better? Growth or Consistency? appeared first on The Motley Fool Canada.

More reading

• Why the Market May Be too Quick to Write Off These Railway and Telecom Stocks
• 2 Canadian Dividend Stocks Yielding 4% That Appear to Have the Goods to Back It Up
• 2 Dividend Stocks I’d Buy Today and Feel Good Holding for at Least 5 Years
• What is Considered a Good Dividend Stock? 2 Infrastructure Stocks That Fit the Bill
• How to Build a 2026 TFSA Strategy That Generates Monthly Cash

Fool contributor Jed Lloren has positions in Bank Of Nova Scotia and Fortis. The Motley Fool recommends Bank Of Nova Scotia, Canadian National Railway, and Fortis. The Motley Fool has a disclosure policy.

Figure out how much money you’ll need

Depending on what kind of retirement you want, your portfolio will need to match that. Say you want a retirement income of $50,000. It’s estimated that the average Canadian will need just more than $29,000 to pay for all necessities in a given year. That includes groceries, car payments, rent, and more.

Of course, this number will change depending on where you’re located in the country, but on average, an annual dividend income of $50,000 should net you about $20,000 in cash that you can spend however you want. That gives you enough flexibility to attend events or go on trips a few times a year — not bad, if you ask me.

How much does your portfolio yield?

Next, you’ll have to figure out how much your portfolio yields in a given year. In other words, how much cash will you receive from the investments you hold? Using our target income of $50,000 per year, you would need to maintain a yield of 5% if you had a $1 million portfolio. That sounds like a lot, but if you can invest consistently for a long time, that’s a number that you could hit eventually.

If you’re hoping to reach that $50,000 annual dividend mark sooner, it’s certainly possible with less money, but you’d have to find companies that yield much more than 5%. For example, if you found dividend stocks that averaged out to a yield of 10%, you could theoretically receive that same income on an investment portfolio of $500,000.

While that may sound great, I certainly wouldn’t recommend it. In my opinion, the best yields to look for are somewhere around the 4-7% range. In Canada, there are outstanding stocks out there that offer Canadians this kind of yield. Investors could turn towards the utilities or financial sectors to find strong, reliable dividend stocks.

A stock you should consider buying for its dividend

If you’re looking for a stock that could help you get started on this journey, then consider Manulife Financial (TSX:MFC). This is the largest insurance company in Canada and one of the largest fund managers in the world.

What investors should find great about insurance companies is that they tend to be pretty stable businesses. For example, these companies receive consistent and predictable payments from customers each month and really only have to pay customers out when they make claims. If you’ve ever had to talk to your insurance company, you’ll know that they even try to make it difficult for any payments to be distributed. In terms of cash, you’ll never have to worry about whether Manulife will have any.

This stock currently offers investors a forward dividend yield of 5.01%. Manulife stock has a dividend payout rate of 56%. That suggests to me that the company could continue to comfortably raise its dividend over the coming years.

The post How Much Cash Do You Need to Stop Working and Live Off Dividends? appeared first on The Motley Fool Canada.

More reading

• 2 Blue-Chip Dividend Stocks Canadians Might Want to Own
• The TSX Stock I’d Most Want to Hold Forever – Especially Inside a TFSA
• Transform Any TFSA Into a Cash-Generating Machine With Even $10,000
• The First 2 Stocks I’m Buying if the Market Crashes
• 2 Canadian Stocks Primed to Surge in 2026

Fool contributor Jed Lloren has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

If you’re just getting started in investing, it’s very easy to get lost in all of the data and traps out there. These days, investors have so much information to wade through to find out which stocks are the right ones to be buying. Fear no more. In this article, I’ll discuss three of the best stocks to invest $10,000 in right now. These three companies all have very simple businesses to understand and could continue to be major players in their respective industries for years to come.

This is my favourite stock

If I could only pick one stock to invest $10,000 in right now, it would be Constellation Software (TSX:CSU). For many Canadians, this company may be one of the most impressive ones you’ve never heard about. The reason most Canadians have never heard of Constellation Software is because it doesn’t operate a consumer-facing business. No, instead, it operates in the background, acquiring vertical market software (VMS) businesses.

Constellation Software isn’t the only company that does what it does. There are many other companies that operate similarly. However, Constellation Software’s acquisition strategy and criteria have proven time and time again to be successful. That’s why this stock has managed to gain nearly 20,000% since its initial public offering in 2006. For those keeping track, that represents a compound annual growth rate of more than 34%!

One stock for the future

Another stock worth buying today is Shopify (TSX:SHOP). This is a company that has grown tremendously over a short period of time. Surprisingly, there are still Canadians out there that haven’t heard of this company. If that sounds like you, then you should know that Shopify operates in the e-commerce space. It provides merchants of all sizes with a platform and many of the tools necessary to operate online stores.

Shopify separates itself from its peers in that it offers a wide breadth of solutions that can cater to everyone from first-time entrepreneurs to large-cap enterprises. This company has certainly had its fair share of issues in recent years, like laying off more than 10% of its workforce. However, there’s no doubt that e-commerce will continue to grow over the coming decade, and Shopify is poised to continue growing its share of the online shopping market.

A dividend stock to balance out your portfolio

Both of the previous stocks have been growth-oriented, but that doesn’t mean investors should ignore dividend stocks. In fact, the Canadian stock market features many outstanding dividend stocks that investors could buy today. To highlight one of them, I will choose Fortis (TSX:FTS). This company provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean.

Fortis is very notable because of its long history of raising its dividend distribution. For those who haven’t heard, this company has successfully increased its dividend in each of the past 50 years. That makes it a Canadian Dividend Aristocrat and gives it the second-longest active dividend-growth streak in the country. Fortis has already announced its plans to continue raising its dividend through to 2028, but I think it could keep growing well beyond that.

The post The Best Stocks to Invest $10,000 in Right Now appeared first on The Motley Fool Canada.

More reading

• 2 Dividend Stocks I’d Buy Today and Feel Good Holding for at Least 5 Years
• How to Build a 2026 TFSA Strategy That Generates Monthly Cash
• Here’s the 3-Stock TFSA Strategy I’d Use in 2026
• Could This $97 TSX Stock Be Your Ticket to Millionaire Status?
• Why $1 Million in Retirement Savings May Not Be Enough Anymore

Fool contributor Jed Lloren has positions in Constellation Software, Fortis, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software and Fortis. The Motley Fool has a disclosure policy.

Constellation Software (TSX:CSU) is a stock that I am very bullish on. Oddly enough, many Canadians don’t know about this company. That’s because Constellation Software isn’t a company that you’d really encounter in your day-to-day life. No, you’d really only know about this company if your workplace were acquired by it or if you’re a seasoned investor. Despite its lack of recognition by the broader population, it’s a stock that I think Canadians should know.

If you had invested $1,000 in this stock five years ago, do you know how much you’d have now? That investment would have turned into $2,085. Yes, as of this writing, Constellation Software stock has gained 208.5% over the past five years. That represents a compound annual growth rate of 25.3%. To put that into perspective, the TSX has only gained 32% over the same period.

What is Constellation Software?

So, what exactly is this company? Well, Constellation Software is an acquirer of vertical market software (VMS) businesses. For much of its history, Constellation Software has focused on small- and medium-sized VMS businesses. Clearly, its decision to do so was a very good one. Constellation Software established itself as a leader in its space and grew into one of the largest VMS acquirers in the world.

Since 2021, the company has expanded its scope to include the acquisition of large VMS businesses. Still operating according to its proven playbook, Constellation Software’s efforts have shown to be successful yet again. The stock continues to grow off the back of its acquisitions of companies like WideOrbit.

Why is this company so successful?

In my opinion, what makes Constellation Software so successful is its acquisition strategy. This company requires businesses to be the best of the best in order to be acquired by it. For example, a potential acquisition needs to have an outstanding manager, consistent profitability, and above average growth. It also wants potential acquisitions to be a clear leader, or number two player, in its respective vertical market.

By sticking to those strict requirements and being intelligent about capital acquisition, Constellation Software has been able to consistently grow its business at a very fast pace.

In addition to that outstanding growth strategy, Constellation Software continues to be led by its founder, Mark Leonard. It’s been previously shown that founder-led companies tend to outpace returns generated by companies led by non-founders. Constellation Software is no different. In my opinion, as long as Mr. Leonard continues to lead this company, Constellation Software is an easy buy for any growth portfolio.

Foolish takeaway

There are many outstanding tech stocks in Canada. There are also many companies that could generate handsome returns over the long run. But there is only one Constellation Software. If you’re serious about growth, then don’t ignore this stock. It has turned $1,000 into $2,085 over the past five years. I think it can continue to generate great returns over the next five years.

The post If You Invested $1,000 in Constellation Software Stock 5 Years Ago, This Is How Much You’d Have Now appeared first on The Motley Fool Canada.

More reading

• Could This $97 TSX Stock Be Your Ticket to Millionaire Status?
• 1 Standout Growth Stocks Worth Buying Today and Holding for the Long Haul
• The $109,000 TFSA Opportunity: How Do You Stack Up?
• 2 Cheap Tech Stocks to Buy Right Now
• 3 Canadian Stocks That Are Nearly Perfect for a $7,000 TFSA Investment

Fool contributor Jed Lloren has positions in Constellation Software. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

Investing in dividend stocks is a great way for investors to build wealth. That’s because dividend stocks tend to be much less volatile than their growth counterparts. Because of this, it may be easier for investors to allow these investments to continue running and compounding during times of economic uncertainty or downturns. In this article, I’ll discuss three top dividends that investors should be buying hand over fist.

One of the best dividend stocks around

When it comes to dividend stocks, Fortis (TSX:FTS) is a company that all investor should be very familiar with. In my opinion, this is one of Canada’s most impressive dividend stocks. However, before we dive into its dividend performance, for those who aren’t yet familiar with this company, know that it provides regulated gas and electric utilities to more than three million customers. It operates in Canada, the United States, and the Caribbean.

Back to its dividend, Fortis is listed as a Canadian Dividend Aristocrat. In order to make that list, companies need to increase their dividend distributions for at least five consecutive years. However, Fortis crushes that growth requirement out of the park. This company has raised its distributions in each of the past 50 years. It plans to continue doing so through to at least 2028.

A stock that has been paying shareholders for a very long time

Another thing to consider when looking for dividend stocks is how long they’ve been able to pay shareholders. Take Bank of Nova Scotia (TSX:BNS) as an example of this. Bank of Nova Scotia is a company that needs little introduction. It’s one of Canada’s largest banks in terms of assets under management, market capitalization, and revenue.

Bank of Nova Scotia first paid shareholders a dividend on July 1, 1833. Since then, the company has never missed a dividend payment. That means Bank of Nova Scotia is coming up to 191 consecutive years of dividend distributions. To put that into perspective, consider how many periods of economic uncertainty have occurred over that period. Bank of Nova Scotia has shown an ability to intelligently allocate capital in order to ensure a reliable distribution to shareholders.

An underrated dividend stock

Finally, investors should consider buying shares of Alimentation Couche-Tard (TSX:ATD). For many Canadians outside of Quebec, you may not be very familiar with that name. You should know that this company operates convenience stores. It also operates under several different banners, including Mac’s, Circle K, On the Run, and many more. All considered, Alimentation Couche-Tard operates about 16,700 locations across 29 countries.

According to Alimentation Couche-Tard’s most recent earnings presentation, the company has increased its dividend about 10-fold over the past 11 years. That amounts to a compound annual growth rate of about 27%. Despite that outstanding growth, Alimentation Couche-Tard’s payout ratio is still only 14.55%. That suggests that the company could continue to comfortably increase its dividend at a steady rate for years to come.

The post 3 Top Dividend Stocks to Buy Hand Over Fist appeared first on The Motley Fool Canada.

More reading

• 2 Canadian Dividend Stocks Yielding 4% That Appear to Have the Goods to Back It Up
• 2 Dividend Stocks I’d Buy Today and Feel Good Holding for at Least 5 Years
• How to Build a 2026 TFSA Strategy That Generates Monthly Cash
• Here’s the 3-Stock TFSA Strategy I’d Use in 2026
• This Canadian Dividend Stock Dropped 6.8% – Here’s Why I’d Buy It Anyway

Fool contributor Jed Lloren has positions in Bank Of Nova Scotia and Fortis. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Bank Of Nova Scotia and Fortis. The Motley Fool has a disclosure policy.

So, if this company is so great and well-known by experienced investors, why do those newer to the stock market not know it? Well, for starters, Constellation Software doesn’t operate a consumer-facing business. That means you likely won’t encounter this company in your everyday life. Its business focuses on the acquisition of vertical market software (VMS) businesses.

For most of its history, Constellation Software has focused on acquiring small- and medium-sized VMS businesses. That was a strategy that proved to be very successful. Following that business model, Constellation Software grew into one of the most successful stock market stories in the country.

However, in 2021, the company announced that it would finally start targeting large VMS businesses for acquisition. Constellation Software’s president, Mark Leonard, announced that the company would be building out a small team dedicated to focusing on large VMS acquisitions. This effort has culminated in a couple of spinoffs, helping the company facilitate those acquisitions.

Why should investors buy this stock?

As I mentioned previously, Constellation Software is one of the most successful stocks in the history of the Canadian market. As of this writing, Constellation Software stock has gained more than 20,000% since its initial public offering (IPO).

Let’s put that growth into perspective. If you had invested $10,000 around the time of Constellation Software’s IPO, then you would have been able to buy 546 shares. I won’t account for fractional shares since Canadian brokerages didn’t offer that back in 2006. Today, if you still held those 546 shares, your position in Constellation Software stock would be worth more than $2 million.

Despite those outstanding gains, Constellation Software hasn’t really shown signs of slowing down. So far this year, the stock has gained more than 13%. Looking back over the past year, we can see that Constellation Software stock has gained nearly 40%. Those are returns that greatly outpace the broader market. To put that into perspective, consider that the TSX has gained about 5% in 2024 and only 6% over the past year.

In addition to its outstanding performance, Constellation Software continues to be led by its founder, Mark Leonard. History has shown that founder-led companies tend to outpace competitors led by non-founders. In my opinion, as long as Mr. Leonard continues to lead this company, Constellation Software is an easy buy for any growth investor.

If you’re looking for a great tech stock to hold in your portfolio, then consider adding shares of Constellation Software today. In my opinion, it’s a stock that could be very rewarding to hold over the next decade.

The post Constellation Software: Buy, Sell, or Hold? appeared first on The Motley Fool Canada.

More reading

• Could This $97 TSX Stock Be Your Ticket to Millionaire Status?
• 1 Standout Growth Stocks Worth Buying Today and Holding for the Long Haul
• The $109,000 TFSA Opportunity: How Do You Stack Up?
• 2 Cheap Tech Stocks to Buy Right Now
• 3 Canadian Stocks That Are Nearly Perfect for a $7,000 TFSA Investment

Fool contributor Jed Lloren has positions in Constellation Software. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

For much of this year, the stock market has been very rewarding to be a part of. The S&P 500 has already gained more than 8%, and the S&P/TSX has gained about 5%. Given that we’ve only gone through the first quarter, it’s very promising in terms of the kinds of returns investors could see by the end of the year.

However, over the past week, there has been growing pessimism in the market due to a number of reasons. Namely, investors are discouraged by the fact that interest rates haven’t been cut due to lingering effects of high inflation. As a result, we saw stocks continue to fall steadily over the course of the past week.

Some stocks, like Constellation Software (TSX:CSU) saw significant declines on Thursday and Friday. That stock, in particular, dropped more than 3% through those two days. Today, Constellation Software has gained more than 1% (as I write this article), yet the stock still trades a bit lower than where it was to open last Monday. Despite that and the lingering pessimism in the market, I will continue to buy this stock hand over fist in April.

Why will I continue to buy Constellation Software stock?

The simplest way to put it is, Constellation Software is a proven winner. Since its initial public offering, this stock has gained more than 19,700%. Through all its years and all of that success, Constellation Software’s leadership team remains intact.

Mark Leonard, the company’s founder, remains its president. In addition, he continues to show shareholders, through his letters, that Constellation Software is still committed to outpacing growth. In my opinion, as long as Mr. Leonard stays at the head of this company, Constellation Software is an easy addition to any investor’s portfolio.

It should be noted that Constellation Software’s financials also continue to impress. In December 2023, the company reported $2.32 billion in quarterly revenue. That represents a year-over-year growth of about 25.7%. Furthermore, the company’s net income grew by 25% year over year during the same period. Looking at Constellation Software’s total revenue in 2023, we can see a 27% year-over-year increase to $8.41 billion.

What should investors know about Constellation Software stock?

If you aren’t familiar with it, this company acquires vertical market software (VMS) businesses. For much of its history, Constellation Software has focused on small- and medium-sized VMS businesses for acquisition. However, in 2021, the company announced its plans to begin targeting large VMS businesses.

We’ve seen this plan start to come to fruition through a couple of spin-offs that have helped facilitate those large acquisitions.

Although Constellation Software has displayed its expertise in that area, investors should note that it isn’t the only company that does this. There are many “copycat” companies out there that could affect Constellation Software’s business in the future. Mark Leonard even mentioned that fact in one of his most recent shareholder letters. However, I am still very bullish on this company’s success, and you should be, too.

The post 1 Stock I’m Buying Hand Over Fist in April Despite the Market’s Pessimism appeared first on The Motley Fool Canada.

More reading

• Could This $97 TSX Stock Be Your Ticket to Millionaire Status?
• 1 Standout Growth Stocks Worth Buying Today and Holding for the Long Haul
• The $109,000 TFSA Opportunity: How Do You Stack Up?
• 2 Cheap Tech Stocks to Buy Right Now
• 3 Canadian Stocks That Are Nearly Perfect for a $7,000 TFSA Investment

Fool contributor Jed Lloren has positions in Constellation Software. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

If you find yourself thinking that too, fear not. There are many great stocks that could be worth holding in your portfolio. In this article, I’ll discuss my top Canadian tech stock that investors should consider buying and holding for years.

Which stock should you buy today?

My top tech stock to buy today would be Constellation Software (TSX:CSU). This is one of the best stocks you’ve likely never heard of. Constellation Software acquires vertical market software (VMS) businesses. Upon acquisition, it provides those businesses with the resources necessary to turn them into exceptional business units. Since its founding, Constellation Software has managed to perfect its acquisition strategy. This success has been reflected in its stock price.

Since its initial public offering, Constellation Software stock has gained nearly 19,700%. That means a $10,000 investment would be worth more than $1 million today. There are very few stocks in Canada that can boast that kind of success.

What makes Constellation Software so attractive?

As mentioned previously, the secret to Constellation Software’s success is its acquisition strategy. Competitors realized that as well and have previously tried to copy Constellation Software’s approach to acquiring businesses. That’s why, due to competitive reasons, Constellation Software began limiting the details they release regarding each acquisition.

To put it simply though, Constellation Software has a strict criteria that they follow when considering businesses to acquire. Generally, they require that a business have an outstanding management team, consistent profitability, and above-average growth. For much of its history, Constellation Software has focused on small- and medium-sized VMS businesses.

However, in 2021, the company announced that they were having trouble finding great deals in small- and medium-sized VMS businesses. As a result, they decided to flesh out a new division that will specialize in large VMS business acquisition. That has cumulated in the spin-off of a couple of Constellation Software’s divisions in order to fund those new large VMS acquisitions.

Over the past year, this stock has gained nearly 44%, suggesting that the company’s new direction is paying off.

In addition to its excellent business performance, Constellation Software continues to be led by its founder, Mark Leonard. It’s previously been shown that founder-led companies tend to outperform peers led by non-founders. Because of that, as long as Leonard continues to lead Constellation Software, I believe this stock is one you could buy and hold without having to worry about it on a month-to-month basis.

The post Missed Out on Nvidia? My Best Tech Stock to Buy and Hold appeared first on The Motley Fool Canada.

More reading

• Could This $97 TSX Stock Be Your Ticket to Millionaire Status?
• 1 Standout Growth Stocks Worth Buying Today and Holding for the Long Haul
• The $109,000 TFSA Opportunity: How Do You Stack Up?
• 2 Cheap Tech Stocks to Buy Right Now
• 3 Canadian Stocks That Are Nearly Perfect for a $7,000 TFSA Investment

Fool contributor Jed Lloren has positions in Constellation Software. The Motley Fool recommends Constellation Software and Nvidia. The Motley Fool has a disclosure policy.

In this article, I’ll discuss two dividend stocks you should pick up today — or double down on if you already own them!

One of the best dividend stocks in the country

When it comes to Canadian dividend stocks, investors have a wide variety of companies to choose from. Essentially, every sector has great companies that pay shareholders on a recurring basis. However, if I could only choose one sector to invest in for a dividend, it would likely be the utility sector. That’s because, as you may know, utilities tend to be paid on a monthly basis. That provides companies that operate in those areas with a very stable source of revenue.

Using that predictable source of revenue, companies can plan for dividend distributions (and raises) ahead of time. Take Fortis (TSX:FTS), for example. This company has been using its advantage of a highly predictable revenue to plan dividend raises years in advance. In fact, the company has already announced its plans to continue raising its dividend through to 2028 at a rate of 4-6%. If you’re keeping track, that would raise its dividend growth streak to 54 years.

A bona fide Canadian Dividend Aristocrat, Fortis holds the second-longest active dividend-growth streak in the country. Given its business model and historical performance, I believe this company could continue to pay shareholders for a very long time.

This stock has been paying shareholders for a very long time

Speaking of companies that have been paying shareholders for a very long time, Bank of Nova Scotia (TSX:BNS) is unmatched by nearly all Canadian companies in that regard. Before we get to its dividend, you should know that Bank of Nova Scotia is one of the Big Five Canadian banks. Because the Canadian banking industry is so highly regulated, I believe its position atop its industry should be secure for years to come.

Now, let’s take a look at its dividend. Bank of Nova Scotia has been paying shareholders a dividend since July 1, 1833. Since then, the company has never missed a payment. That represents 190 years of continued dividend distributions. If you sit for a moment and consider how many periods of economic uncertainty have occurred over that period, it’s impossible to be unimpressed.

Many people may not want to support banks by buying their stock; however, you can’t dispute their role in our economy. The Canadian banks should be around for a very long time and it only makes sense that investors take advantage of their stability.

The post 2 Dividend Stocks to Double Up on Right Now appeared first on The Motley Fool Canada.

More reading

• 2 Dividend Stocks I’d Buy Today and Feel Good Holding for at Least 5 Years
• 2 Canadian Dividend Stocks Yielding 4% That Appear to Have the Goods to Back It Up
• How to Build a 2026 TFSA Strategy That Generates Monthly Cash
• Here’s the 3-Stock TFSA Strategy I’d Use in 2026
• 4 TSX Dividend Stocks That Retirees Might Want on Their Radar

Fool contributor Jed Lloren has positions in Bank Of Nova Scotia and Fortis. The Motley Fool recommends Bank Of Nova Scotia and Fortis. The Motley Fool has a disclosure policy.

By investing in dividend stocks, investors can receive a reliable distribution on a recurrent basis. This is usually in the form of a quarterly dividend; however, monthly or annual dividends exist as well.

When looking for dividend stocks to hold in your portfolio, it’s important to consider whether a company has been able to increase its dividend over time. This is because a dividend that can’t grow will result in a loss of buying power over time (due to inflation). Generally, I look for stocks that have a dividend-growth rate of at least 5%. That’s more than twice the long-term rate of inflation.

In this article, I’ll discuss two great dividend growers that investors should buy hand over fist in March.

A massively important company

Canadian National Railway (TSX:CNR) is the first stock that investors should consider buying for its dividend. This is one of the largest railway companies in North America, operating across 33,000 kilometres of track. Canadian National Railway’s rail network is massive. Across Canada, it stretches from British Columbia to Nova Scotia. Many Canadians may not know that this company also operates in the United States as far south as Louisiana.

A Canadian Dividend Aristocrat, Canadian National Railway has been raising its dividend distribution for more than two decades. Over that period, this stock’s dividend distribution has seen a compound annual growth rate (CAGR) of over 15%. Compared to the inflation rate, shareholders have seen their dividends grow very quickly. This stock has also gained about 49% (dividends excluded) over the past five years. Any way you look at it, Canadian National Railway is a great option.

Another great stock for your portfolio

Alimentation Couche-Tard (TSX:ATD) is another great dividend payer to consider buying today. For those that don’t know this company, it operates convenience stores. If you’ve never heard of Alimentation Couche-Tard, perhaps you recognize some of the other names it operates under. This includes On the Run, Circle K, Dairy Mart, and many more. All considered, Alimentation Couche-Tard operates over 16,700 locations across 29 countries.

Another Canadian Dividend Aristocrat, Alimentation Couche-Tard boasts a very impressive growth rate. Since 2005, this stock’s dividend has grown at a CAGR of more than 23%. Imagine, you invest in this company and see its dividend increase almost by a quarter of its value every year. Perhaps even more impressive, Alimentation Couche-Tard’s payout ratio stands at about 14.5%. That means the company could continue to comfortably raise its dividend for years to come.

The post 2 Incredible Dividend Growers to Buy Hand Over Fist in March appeared first on The Motley Fool Canada.

More reading

• Why the Market May Be too Quick to Write Off These Railway and Telecom Stocks
• What is Considered a Good Dividend Stock? 2 Infrastructure Stocks That Fit the Bill
• 2 Canadian Stocks to Own as Inflation Stages a Comeback
• This Canadian Dividend Stock Dropped 6.8% – Here’s Why I’d Buy It Anyway
• 2 Canadian Stocks That Look Primed for a Strong 2026

Fool contributor Jed Lloren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.