Earn $1,155 in Dividend Income That the CRA Can’t Touch

This group of dividend-growth streakers, including Choice Properties REIT (TSX:CHP.UN), can help give your portfolio a much-needed raise.

| More on:

Hello there, Fools. I’m back to highlight three attractive dividend growth stocks. As a quick reminder, I do this because companies with consistently growing dividends

The three stocks below offer an average dividend yield of 7.7%. If you spread them out evenly in a modest $15K Tax-Free Savings Account (TFSA) account, the group will provide you with an annual tax-free income stream of $1,155; on top all the appreciation you could earn.

Let’s get to it.

Top choice

Leading off our list is retail real estate company Choice Properties REIT (TSX:CHP.UN), which has steadily grown its dividend by 14% over the past five years.

Choice shares have held up well during the pandemic-related crash, suggesting that it remains a solid way to play defense. Specifically, Choice’s long-term dividends should continue to be supported by a high-quality portfolio, steady cash flows, and a prudent M&A strategy.

In the most recent quarter, adjusted funds from operations (AFFO) clocked in at $152 million. More important, Choice’s AFFO payout ratio stood at a still-solid 85%.

“The COVID-19 pandemic did not have a material impact on our financial results for the quarter, but our team was busy working on a wide range of measures to help ensure the health and well-being of our employees and tenants,” said President and CEO Rael Diamond.

Choice shares currently offer a rather tempting dividend yield of 6.1%.

Bank shot

Next up, we have financial services specialist Laurentian Bank (TSX:LB), which has grown its dividend payout by 22% over the past five years.

Laurentian shares have yet to recover after plunging in March, but now could be an opportune time to jump in. Specifically, the bank’s decent scale (revenue recently exceeded $1 billion), strong credit quality, and a rock-solid financial position continue to underpin its long-term investment case.

Although both revenue and earnings were disappointing in Q1, Laurentian’s Business Services segment continued to grow, while its personal loan portfolio showed further stabilization. Moreover, the company’s Common Equity Tier 1 ratio stood at a still-respectable 9.0%.

“We have completed a substantial part of the transformation and we are beginning to see real progress in foundational work, growth in our customer base and concrete advancements towards improving customer experience,” said President and CEO François Desjardins.

Laurentian shares currently offer a tempting dividend yield of 9.5%.

Read the tape

With dividend growth of 39% over the past five years, packaging company Intertape Polymer (TSX:ITP) rounds out our list this week.

Intertape shares still remain off about 40% from their 52-week highs, providing Fools with a possible buying opportunity. After all, the company continues to leverage its solid international reach, consistent cash flows, and leadership position in the packaging space to deliver solid results for shareholders.

In the most recent quarter, for example, EPS of $0.24 topped expectations by $0.07 while revenue of $279 million also beat estimates.

“From our perspective, we believe the business is extremely well positioned to weather the downturn,” said President and CEO Greg Yull. “Most importantly, the commitment of our employees to continue to perform in the face of the pandemic we believe demonstrates that they recognize the essential nature of their work as well as the trust in our team to protect their health and safety.”

Intertape currently offers a healthy dividend yield of 7.4%.

The bottom line

There you have it, Fools: three attractive dividend growth stocks worth checking out.

As always, they aren’t formal recommendations. They’re simply a starting point for more research. The snapping of a dividend-growth streak can be particularly painful, so plenty of due diligence is still required.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned.     

More on Dividend Stocks

calculate and analyze stock
Dividend Stocks

TFSA Investors: 3 Dividend Stocks to Consider Buying While They Are Down

These stocks offer attractive dividends right now.

Read more »

data analyze research
Dividend Stocks

Top Canadian Stocks to Buy Right Away With $2,000

These two Canadian stocks are the perfect pairing if you have $2,000 and you just want some easy, safe, awesome…

Read more »

money goes up and down in balance
Dividend Stocks

Take Full Advantage of Your TFSA With These 5 Dividend Stars

Choosing the right dividend stars for your TFSA can be tricky, especially if your goal is to maximize the balance…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

The Best Canadian Dividend Stocks to Buy and Hold Forever in a TFSA

These three top dividend stocks are ideal for your TFSA due to their consistent dividend payouts and healthy yields.

Read more »

open vault at bank
Dividend Stocks

1 Magnificent TSX Dividend Stock, Down 10%, to Buy and Hold for a Lifetime

A recent dip makes this Big Bank stock an attractive buying opportunity.

Read more »

Canadian Dollars bills
Dividend Stocks

2 Incredibly Cheap Canadian Growth Stocks to Buy Before It’s Too Late

Buying cheap stocks needs patience and a long-term investment approach. Only then can they give you extraordinary returns.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Top Canadian Stocks to Buy for Passive Income

Want to generate a juicy passive income that can last for decades? Here are three stocks every investor needs to…

Read more »

exchange traded funds
Dividend Stocks

1 Top High-Yield Dividend ETF to Buy to Generate Passive Income

An ETF designed as a long-term foundational holding pays generous monthly dividends.

Read more »