2 Top Dividend-Growth Stocks to Buy in May

These two dividend stocks saw major growth after earnings that promised more was coming in the future. And now could be the time to buy.

| More on:
A plant grows from coins.

Source: Getty Images

Earnings season is upon us, and while some dividend stocks have seen growth, others have fallen to the side. But today, let’s focus on the good news. We’ll cover two dividend stocks that continued their growth this month and could still be a strong buy to consider in May.

Brookfield Renewable

Shares of Brookfield Renewable Partners (TSX:BEP.UN) shot up with strong earnings being the culprit. And it’s about time. Shares of the dividend stock continue to trade at nearly half of their all-time highs, achieved back in 2021.

The company had a record first quarter, literally. And what’s more, it signed a “landmark agreement” with Microsoft. Brookfield will deliver over 10.5 gigawatts of more renewable energy capacity. This will help the company grow out its artificial intelligence (AI) cloud services business.

BEP stock reported funds from operations (FFO) of US$296 million for the quarter, at US$0.45 per share. The company expects to deliver 10% growth in FFO for the entire year and continues to target US$3 billion of proceeds this year for attractive returns from asset sales.

It was an improvement for the quarter, with FFO climbing quarter over quarter. The third quarter brought in FFO of US$253 million, with a loss of US$64 million. By the fourth quarter, FFO grew to US$255 million with a net income of US$35 million. So, while the company increased its loss, FFO continues to rise.

Overall, the company demonstrates strength and also recently increased its dividend by 5%. So, as shares rise and strength is underway, it’s a great time to pick up BEP stock for growth with a 5.7% dividend yield.

First Quantum

Another company seeing growth on the back of earnings is First Quantum Minerals (TSX:FM). The stock has climbed higher and higher recently, especially after strong first-quarter earnings, even though the company reported a loss.

FM stock reported a loss of US$159 million in the first quarter, with revenue of US$1.04 billion. On a quarterly basis, the company reported US$660 million in gross profit during the third quarter, and revenue of US$2.029 billion. By the fourth quarter, the stock reported gross profit that was down to US$87 million and revenue down to US$1.22 billion.

So, with revenue down and a bigger loss, what are investors so excited about? In this case it’s that the stock cut its debts by US$1.14 billion in the first quarter. Furthermore, that there was also more copper to be found in some of its mines, and now its copper mine in Panama is looking to open back up. So, while the company had a weaker-than-normal quarter, it looks promising for investors looking ahead.

With shares continuing to climb and a 1.57% dividend yield, FM stock is another company that investors should certainly keep on their radar in May.

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners and Microsoft. The Motley Fool recommends Brookfield Renewable Partners and Microsoft. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Paper Canadian currency of various denominations
Dividend Stocks

Should You Buy the 3 Highest-Paying Dividend Stocks in Canada?

A few dividend stocks saw a sharp correction in November, increasing their yields. Are they a buy for high dividends?

Read more »

money while you sleep
Dividend Stocks

Buy These 2 High-Yield Dividend Stocks Today and Sleep Soundly for a Decade

These stocks pay attractive dividends that should continue to grow.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

$15,000 Windfall? This Dividend Stock Is the Perfect Buy for Monthly Passive Income

If you get a windfall, after debt investing should be your next top option to create even more passive income!

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

3 Canadian Dividend Stocks for Worry-Free Income

These Canadian stocks have consistently paid dividends, generating a worry-free passive income for investors.

Read more »

people relax on mountain ledge
Dividend Stocks

Invest $10,000 in This Dividend Stock for a Potential $4,781.70 in Total Returns

A dividend stock doesn't have to be risky, or without growth. And in the case of this one, the growth…

Read more »

ETF chart stocks
Dividend Stocks

2 Top TSX ETFs to Buy and Hold in a TFSA Forever

Don't get crazy. Just think simple growth with these two ETFs that are perfect in any TFSA.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Use Your TFSA to Earn $900 Per Month in Tax-Free Income

This covered call ETF plus a TFSA could be your ticket to high tax-free passive income.

Read more »

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

How to Turn a $15,000 TFSA Into $171,000

$15,000 may not seem like a lot, but over time that amount can balloon into serious cash.

Read more »