4 Dividend-Growth Stocks That Can Help You Retire Early

Dividend-growth stocks such as TransCanada Corporation (TSX:TRP)(NYSE:TRP), Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI), Evertz Technologies Limited (TSX:ET), and Fiera Capital Corp. (TSX:FSZ) can help you retire early. Which should you buy today?

| More on:

As history has shown, owning a portfolio of dividend-paying stocks is the best way to build wealth over the long term, and this investment strategy generates the highest returns when you own stocks that raise their payouts every year. With this in mind, let’s take a look at four stocks with high and safe yields of 3-5%, active streaks of annual increases, and the ability to continue growing their payouts going forward, so you can determine if you should invest in one or more of them today.

1. TransCanada Corporation

TransCanada Corporation (TSX:TRP)(NYSE:TRP) is one of North America’s largest owners and operators of energy infrastructure. Its assets include North America’s largest natural gas pipeline network, a crude oil pipeline network, natural gas storage facilities, and power-generation facilities.

It pays a quarterly dividend of $0.565 per share, or $2.26 per share annually, giving its stock a yield of about 3.7% at current levels.

It’s also important to make the following two notes about TransCanada’s dividend.

First, it has raised its annual dividend payment for 15 consecutive years, and its 8.7% hike earlier this year has it on pace for 2016 to mark the 16th consecutive year with an increase.

Second, it has a dividend-growth target of 8-10% annually through 2020.

2. Rogers Communications Inc.

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is Canada’s second-largest communications company. It provides a broad range of services to individuals and businesses, such as wireless voice and data communications, high-speed internet, cable television, and data networking.

It pays a quarterly dividend of $0.48 per share, or $1.92 per share annually, giving its stock a yield of about 3.6% at current levels. It has also raised its annual dividend payment for 11 consecutive years, and its strong operational performance could allow it to continue this streak in 2016 by announcing a hike when it releases its second-quarter earnings results on Thursday.

3. Evertz Technologies Limited 

Evertz Technologies Limited (TSX:ET) is one of the world’s leading designers, manufacturers, and marketers of video and audio infrastructure solutions for the television, telecommunications, and new-media industries. Its broadcast equipment and solutions deliver content to television sets, on-demand services, WebTV, IPTV, and mobile devices, such as phones and tablets.

It pays a quarterly dividend of $0.18 per share, or $0.72 per share annually, giving its stock a yield of about 4.3% at current levels. It has also raised its annual dividend payment for six consecutive fiscal years, and its very strong financial performance in fiscal 2016 could allow it to continue this streak in fiscal 2017.

4. Fiera Capital Corp.

Fiera Capital Corp. (TSX:FSZ) is one of North America’s largest independent asset managers with about $98 billion in assets under management. It offers a wide range of traditional and alternative investment solutions to individuals, institutions, pension funds, foundations, mutual funds, and religious and charitable organizations.

It pays a quarterly dividend of $0.15 per share, or $0.60 per share annually, giving its stock a yield of about 4.7% at current levels. It has also raised its annual dividend payment for five consecutive years, and its three hikes since the start of 2015 have it on pace for 2016 to mark the sixth consecutive year with an increase.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned. The Motley Fool owns shares of ROGERS COMMUNICATIONS INC. CL B NV.Rogers Communications is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Asset Management
Dividend Stocks

A 10% Dividend Yield Today! But Here’s Why I’m Buying This TSX Stock for the Long Term 

A 10% dividend yield stock has risks in the short term but growth in the long term. This stock is…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

The Safest Dividend Stocks That Could Pay Big Bucks Forever

These two safe Canadian Dividend Aristocrats could help you earn safe income for decades to come.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

2 High-Yield Dividend ETFs to Buy to Generate Passive Income

High-yield dividend ETFs can be major winners in any portfolio, offering diversification, returns, and security. But which are the best?

Read more »

jar with coins and plant
Dividend Stocks

Want $97 in Super-Safe Monthly Dividend Income? Invest $15,000 in These 3 Ultra-High-Yield Stocks 

Do you have a lump sum amount and are worried you will spend it all? Consider investing in dividend stocks…

Read more »

woman looks out at horizon
Dividend Stocks

Top Picks: 3 Canadian Dividend Stocks for Stress-Free Passive Income

Do you want passive income? These three offer not just strong passive income now, but a large future opportunity for…

Read more »

hand stacking money coins
Dividend Stocks

Invest $500 Per Month to Create $335 in Passive Income in 2025

By investing $500 per month into a high yield stock like First National Financial (TSX:FN), you could get $337 in…

Read more »

The sun sets behind a power source
Dividend Stocks

Fortis Stock: Buy, Sell, or Hold?

Fortis has delivered attractive long-term total returns for investors.

Read more »

worker carries stack of pizza boxes for delivery
Dividend Stocks

Is Restaurant Brands International Stock a Buy for its 3.3% Dividend Yield?

QSR stock still trades near 52-week highs yet offers a pretty good dividend as well. So, is it worth it,…

Read more »