4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever

Canadians can depend on top stocks like Exco Technologies Inc. (TSX:XTC) that have delivered long dividend-growth streaks.

| More on:
grow money, wealth build

Image source: Getty Images

Investors who are looking at dividend stocks to buy in 2023, or any other year, for that matter, should always be on the lookout for indicators of long-term quality and consistency. Strong cash flow, robustness of their respective industry, and other factors contribute to the viability of an income-yielding equity. Typically, stocks that have achieved long stretches of dividend growth are dependable in these important categories.

Today, I want to look at four stocks that have achieved high dividend growth. Let’s jump in.

This energy infrastructure giant has delivered a quarter-century of dividend growth

Enbridge (TSX:ENB) is a Calgary-based energy infrastructure company. Its shares have dropped 3.4% month over month as of late-morning trading on June 13. The stock is still down 5.6% so far in 2023.

This company released its first quarter fiscal 2023 results on May 5. It reaffirmed its solid 2023 full-year financial guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA) and distributable cash flow (DCF). Enbridge is on track for strong earnings growth going forward.

Enbridge currently offers a quarterly dividend of $0.887 per share. That represents a very tasty 7% yield. This stock has delivered dividend growth for 27 consecutive years.

Don’t sleep on this undervalued dividend stock in the middle of June 2023

Exco Technologies (TSX:XTC) is a Toronto-based company that designs, develops, manufactures, and sells dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. Shares of Exco Technologies have increased by half a percentage point over the past month. The stock is up 2.2% in the year-to-date period.

Created with Highcharts 11.4.3Exco Technologies PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

In the second quarter of fiscal 2023, the company delivered consolidated sales growth of 30% to $155 million. EBITDA rose 42% year over year to $17.8 million. Meanwhile, Exco reported net income of $6.28 million or $0.16 per share — up from $5.09 million, or $0.13 per share, in the previous year.

Shares of this top stock currently possess a favourable price-to-earnings ratio of 13. Moreover, Exco offers a quarterly dividend of $0.105 per share, which represents a strong 5.3% yield. Exco has posted 17 straight years of dividend growth.

Here is a top utility that is about to become a Dividend King

Fortis (TSX:FTS) is a St. John’s-based utility holding company. Its shares have dropped 7.3% month over month at the time of this writing. The stock is still up 2.7% in the year-to-date period.

In the first quarter of fiscal year 2023, Fortis reported net earnings of $437 million, or $0.90 per common share — up from $350 million, or $0.74 per common share, in the prior year. Meanwhile, adjusted earnings per share (EPS) rose to $0.91 compared to $0.78 in the first quarter of fiscal 2022. Fortis offers a quarterly dividend of $0.565 per share, representing a 3.9% yield. This stock has achieved 49 straight years of dividend growth, which means it is one year short of becoming the second Dividend King on the TSX.

One more stock that has achieved more than two decades of dividend growth

Finning International (TSX:FTT) is the fourth and final top stock offering elite dividend growth I want to zero in on today. This Vancouver-based company sells, services, and rents heavy equipment, engines, and related products in Canada and around the world. Its shares have climbed 16% so far in 2023.

This company delivered EPS growth of 51% to $0.89 in the first quarter of fiscal 2023. Meanwhile, total revenue rose 22% to $2.4 billion. Finning last paid out a quarterly dividend of $0.25 per share. That represents a 2.5% yield. It has delivered 21 consecutive years of dividend growth.

Should you invest $1,000 in Enbridge right now?

Before you buy stock in Enbridge, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enbridge wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Exco Technologies. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

shoppers in an indoor mall
Dividend Stocks

6.2% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

This dividend yield may not be double digit, but it's far safer than many others out there.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

1 Magnificent TSX Value Stock Down 28% I’m Buying With Confidence

goeasy is a rare combination of value, income, and growth worth considering today for high-risk, long-term investors.

Read more »

Trans Alaska Pipeline with Autumn Colors
Dividend Stocks

This Canadian Pipeline Paying 5.5% is My Top Pick for Income Investors

Pembina Pipeline stock’s 5.5% yield, strong contracts, and minimal tariff impact make it a top pick for income investors seeking…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

I’d Put $7,000 in This Reliable Monthly Dividend Payer – Immediately

The following three monthly paying dividend stocks can deliver a reliable passive income.

Read more »

stocks climbing green bull market
Top TSX Stocks

Where I’d Invest $13,000 in the TSX Today

TSX stocks that are benefitting from strong fundamentals and offer investors good entry points today include Enbridge and Aecon.

Read more »

Happy shoppers look at a cellphone.
Dividend Stocks

The Only TSX Stock I’d Buy and Hold for the Next 20 Years

This TSX stock offers growth potential, consistent income, and solid value. These characteristics will result in above-average returns.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

I’d Bet My Entire TFSA on This 3.5% Monthly Dividend Stock

An outperforming monthly dividend stock is a good prospect for TFSA investors in 2025.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

My Top 2 TSX Stocks to Buy Right Away for Long-Term Income

These two TSX stocks aren't only looking to climb over time, they also offer up strong dividends to boot!

Read more »