These 3 Dividend Stocks Could Help You Retire Early

Are you looking for dividend stocks to add to your portfolio? Here are three top picks!

| More on:

For many, retiring early is only a dream. However, it’s more achievable than you think it is. All it requires is smart and consistent investing over a long enough period. For example, investors should identify excellent dividend companies and continue to add to those positions. Over time, the dividends received from those stocks could allow you to retire early. In this article, I’ll discuss three TSX dividend stocks that could help you retire early.

An elite dividend stock

Of all the companies listed on the TSX, fewer than 15 have managed to grow their dividend in each of the past 25 years. That means that the companies that have been able to do that are outstanding businesses compared to their peers. Canadian National Railway (TSX:CNR)(NYSE:CNI) is one of those companies. It holds a 25-year dividend-growth streak. That qualifies the company as a Dividend Aristocrat in Canada and the United States.

When looking at dividend stocks to hold in a portfolio, investors should care about two things. First is a company’s ability to raise dividends each year, as I alluded to earlier. Second is how fast that company’s dividend grows over time. It’s imperative that you hold stocks that have a dividend-growth rate than can outpace the rate of inflation. That way, you ensure that you maintain buying power over time. With Canadian National, you get that. Over the past five years, it has grown its dividend at a CAGR of 12.2%.

A company that more people should take note of

When talking about dividend stocks, investors usually gravitate towards the banks and utility companies. That isn’t without good reason. Those businesses are very reliable, as they see recurring payments from their customers. However, that results in other excellent businesses not getting the same kind of attention. For example, many investors probably haven’t considered investing in Alimentation Couche-Tard (TSX:ATD). Yet I believe it’s one of the most interesting stocks on the TSX.

Many people don’t realize how big this company is. Alimentation Couche-Tard operates more than 14,000 convenience stores across 14 countries. It also operates under many different banners. This includes its flagship Alimentation Couche-Tard and Mac’s locations. However, it also includes On the Run, Circle K, and many more. Over the past five years, Alimentation Couche-Tard has grown its dividend at a CAGR of 19.6%.

An amazing dividend-growth rate

If you’re looking for a stock with an excellent dividend-growth rate, then goeasy (TSX:GSY) is one you should consider today. If you’re unfamiliar with this company, know that it operates two distinct business segments. First, is easyfinancial, which provides high-interest loans to subprime borrowers. Second, it operates easyhome, which sells furniture and other home goods on a rent-to-own basis.

goeasy’s dividend growth rate may be the most impressive I’ve ever seen. Over the past five years, it has grown its dividend at a CAGR of 38.3%. That greatly outpaces the rate of inflation, even in a year like this one.

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

More on Dividend Stocks

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »

young people stare at smartphones
Dividend Stocks

GST/HST “Vacation”: Everything Canadians Need to Know

The GST/HST "vacation" is a little treat for the holidays, along with a $250 payment. What should you do with…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »