Summer Dividend Delights: 5 Top TSX Stocks with High Dividend Growth for Your Portfolio
Bonus stocks are an excellent asset option for those looking to produce passive income and advantage from the growth of well-established corporations. As we enter the summer months, it’s indispensable to consider which frameworks offer high dividend development and can provide a dependable source of revenue. In this object, we will discuss five top TSX shares with high dividend growth that you should reflect on adding to your collection this summer.
Connecting Communities: Telus (TSX: T) Driving Innovation and Connectivity
A Solid Telecom Stock with Impressive Dividend Growth
Telus is a foremost Canadian broadcasting company that has consistently amplified its dividend expenses over the years. Since 2011, the corporation has raised its bonus 24 times under its multi-year dividend-growth platform, paying out around $18 billion in dividends since 2004. Telus strategies to continue cumulative its dividend by 7-10% per annum through 2025, driven by its growing contributor base, development of 5G services, lower mobile churn amount, and funds in network substructure. With a current dividend harvest of 5.7%, Telus is an attractive selection for investors seeking firm income and long-term growth.
Powering Progress: Capital Power (TSX:CPX) Energizing the Future
A Diversified Power Producer with Consistent Dividend Increases
Capital Power is a North American wholesale power producer that has increased its dividend for nine consecutive years. The company plans to grow its annual dividend by about 6% through 2025, supported by its diversified long-life assets, power-purchase agreements, and solid pipeline of developmental projects. Capital Power’s renewable asset portfolio, low-risk business model, and growing cash flows make it a reliable choice for investors seeking consistent dividend growth. At its current stock price, Capital Power offers a dividend yield of 5.45%.
3. Fortis (TSX:FTS)
A Regulated Electric Utility with a Stellar Dividend History
Fortis is a regulated electric utility company known for its impressive dividend payment history. The company has increased its dividend for 49 consecutive years, thanks to its low-risk business model and regulated cash flows that remain relatively immune to economic cycles. Fortis supposes to grow by its turnover by 4-6% per annum concluded 2027, reflecting a higher rate base. The company’s rate base is projected to increase by an average annualized growth rate of 6% through 2027, expanding its regulated asset base and driving earnings. Fortis stock currently offers a well-protected dividend yield of close to 4%.
4. AltaGas (TSX: ALA)
A Balanced Energy Infrastructure Company with Growing Dividends
AltaGas is an energy infrastructure company with a balanced mix of low-risk utility and midstream assets that generate substantial cash flows to support higher payouts. The company has experienced a compound annual growth rate of 12% in earnings since 2019, enabling it to enhance shareholder returns through increased dividend payments. AltaGas expects to hike its annual dividend by 5-7% through 2026, backed by higher earnings and an 8-10% per annum increase in its rate base in the medium term. The strength of its midstream operations also supports its growth prospects. At current levels, AltaGas stock offers a dividend yield of 4.91%.
5. Brookfield Renewable Partners (TSX:BEP.UN)
A Pure-Play Renewable Energy Company with Consistent Dividend Growth
Brookfield Renewable Associates is a pure-play renewable power company with an expanded portfolio of high-quality renewable power properties, a robust development pipeline, power-buying agreements, and long-term contracts with rise protection. The company has increased its extra at an average annualized development rate of 6% over the past two decades and supposes to raise its dividends by 5-9% yearly in the coming years. Brookfield Renewable Partners presently offers a dividend yield of 4.7%.
Capitalizing on high-dividend-growth shares can provide a reliable source of inactive income and long-term growth latent. The five TSX stocks conversed in this article suggest attractive dividend produces and have established consistent dividend development over the years. As you reflect on your investment selections this summer, these top TSX stocks with great dividend growth should be on your locator for generating regular money and expanding your collection.