Investing in top Canadian dividend stocks can help you earn worry-free income regardless of where the market moves. Companies like Fortis (TSX:FTS) and Enbridge (TSX:ENB) exemplify this stability, having steadily increased their dividends over many years. Looking ahead, these stocks are well-positioned to continue growing their dividend payouts.
While TSX stocks like Fortis and Enbridge are a no-brainer for income investors, here I’ll focus on Canadian companies with high dividend growth rates. These companies have strong fundamentals and sustainable payouts, ensuring a steady stream of passive income that grows over time. Reinvesting these dividends can further enhance your long-term investment returns.
In this context, here are two top stocks with high dividend growth to buy now.
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goeasy stock
goeasy (TSX:GSY) is a reliable stock offering high dividend growth. This subprime lender’s ability to grow its earnings at a double-digit rate drives its payouts and share price. For instance, goeasy’s bottom line has increased at a compound annual growth rate (CAGR) of over 28% in the last five years (as of December 31, 2024).
Thanks to its solid earnings base, goeasy stock has appreciated by over 519% in the last five years, growing at a CAGR of an impressive 44%. Moreover, it returned higher cash to its shareholders through increased dividends. goeasy has been paying dividends for 21 years and has consistently increased the same for 11 years. The financial services company recently increased its annual dividend by 25% to $5.84 per share. Moreover, its dividend has increased by about 121% since 2021.
Looking ahead, goeasy will continue to grow its dividend at a solid pace. Its leadership in the subprime lending space, diversified lending sources, omnichannel offerings, solid credit underwriting capabilities, and operating efficiency will drive its earnings. Higher earnings will enable goeasy to increase its dividend at a healthy pace and enhance shareholders’ value.
Besides offering growth and solid dividend income, goeasy stock offers significant value near the current market price. Its next-12-month price-to-earnings (P/E) multiple of just 7.8 looks compelling, considering its double-digit earnings growth rate and a high return on equity (ROE) of over 26%. Moreover, the stock offers a well-protected dividend yield of 3.8%.
Canadian Natural Resources stock
Canadian Natural Resources (TSX:CNQ) is one of the most reliable Canadian dividend stocks to consider now. The energy giant’s high-quality asset base, ability to increase production, and focus on efficiency drive its earnings and adjusted funds flow, supporting its payouts.
In 2024, Canadian Natural Resources increased its quarterly dividend twice, reflecting its commitment to rewarding investors. At the start of 2025, it announced another dividend hike, a 4% increase, bringing its annualized payout to $2.35 per share. This marks 25 consecutive years of dividend growth, with a CAGR of 21%. The company returned approximately $7.1 billion to shareholders in 2024, including dividends and share buybacks.
Besides offering steady income, Canadian Natural Resources stock has appreciated by over 742% in the last five years, generating significant capital gains for its investors.
Canadian Natural Resources is well-positioned to continue delivering solid returns. With a strong balance sheet, a diversified and efficient asset mix, and capital-light projects, the company is set to generate robust earnings and cash flow. These strengths should help drive dividend growth and the stock price.
