If you’re a Canadian investor looking for passive income, then you’re doing yourself a disservice by only considering dividends. Dividends are great, of course, but only if you’re also getting returns as well. This is why today, I’m going to look at dividend stocks seeing strong growth in 2024, which should continue for the year ahead — all while providing a stable and growing dividend.
Manulife
Probably the biggest winner of this year in terms of both growth and dividends is Manulife Financial (TSX:MFC). Manulife stock is already up 24% year to date alone, with a dividend yield of 4.4% as of writing. Yet it still trades at a fairly valued 15.33 times earnings.
This should continue, as Manulife stock is one of the oldest and most established insurance and financial services companies globally. With over a century of operation, it has built a strong reputation for stability and longevity in the financial markets.
Furthermore, it operates in various segments of the financial services industry, including insurance, wealth management, asset management, and banking. This diversified business model helps in mitigating risks associated with any single sector or market downturn.
As Manulife stock has a track record of paying dividends, income-oriented investors will love its steady income stream. Yet despite being a mature company, Manulife still has room for growth, especially in emerging markets where demand for insurance and financial services is increasing. The company’s strategic initiatives and expansion efforts position it well for capturing growth opportunities.
Canadian Natural Resources
Another strong winner year to date has been Canadian Natural Resources (TSX:CNQ). The company is up 21% year to date, with a 3.81% dividend yield. Yet again, fairly trades at 15.65 times earnings as of writing.
While the energy sector can be volatile, CNQ is one of the largest and most established energy companies in Canada, with a diversified portfolio of assets that can help withstand market fluctuations. CNQ has a history of strong financial performance, driven by its efficient operations, low-cost production, and disciplined capital allocation. This performance translates into potential returns for investors through stock price appreciation and dividend payments.
What’s more, CNQ has a track record of paying dividends to its shareholders. Despite fluctuations in commodity prices, CNQ has maintained or increased its dividend payments over time, making it an attractive investment for income-oriented investors seeking reliable dividend income.
Finally, CNQ has significant reserves and a robust production growth profile, supported by its diverse portfolio of assets, including oil sands, conventional oil and gas, and offshore assets. This production growth potential can drive revenue and earnings growth over the long term, benefiting shareholders.
Bottom line
So, how much could you get from these companies in 2024? Let’s say both of them rise once more by 21% in share price. You then invest $5,000 into each stock. Here is what that could achieve from both dividend stocks put together.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| MFC- now | $35.75 | 140 | $1.60 | $224 | quarterly | $5,000 |
| MFC – 21% | $43.26 | 140 | $1.60 | $224 | quarterly | $6,056.40 |
| CNQ – now | $105.75 | 47 | $4.00 | $188 | quarterly | $5,000 |
| CNQ – 21% | $128 | 47 | $4.00 | $188 | quarterly | $6,016 |
After making a total of $10,000 investment, you could walk away with $412 in dividends and $2,072.40 in returns. That’s total passive income of $2,484.40 in 2024 alone!
