Dividend Growth Machines
/// “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in” – John D. Rockefeller ///
I recently curated (on June 28, 2019) a list of 70 Canadian dividend growth stocks that I’ve named: "Dividend Growth Machines".
These are publicly traded companies in Canada that pay out dividends to their shareholders. My focus wasn’t on finding the highest dividend yields (because that could lead to issues later, e.g. big dividend cut), but rather I wanted to bring together a diverse group of quality Canadian companies (non Resource-based) that were growing their dividends over time; like an annual salary increase for shareholders to help build long-term wealth.
Dividend growth stocks are perfect in a TFSA (no dividend tax!)
Here’s the Power of a Dividend Growth Portfolio (scenarios):
– $100,000 x 3% Yield = $3,000 Dividend Income
– $300,000 x 3% Yield = $9,000 Dividend Income
– $600,000 x 3% Yield = $18,000 Dividend Income
– $1,000,000 x 3% Yield = $30,000 Dividend Income
As can be seen above, once a DIY investor achieves a $600K+ portfolio, their dividend income can essentially become a 2nd pay cheque ($18,000+ per year). It’s a wonderful thing. But of course; that’s dependent on the portfolio's dividend yield (all companies together).
As at June 28, 2019, the 70 Dividend Growth Machines together boast a 3.12% avg. dividend yield (top 10: 6.5% yield), but importantly have on average grown their dividend by 10% annually over a 5 year period (a 10% CAGR would effectively double the dividend every ~7 years). This dividend income would steadily rise over time, and shareholders could either re-invest those dividends in stocks (same or different), or use the cash as income to spend / re-invest elsewhere (e.g. real estate).
You can pick n' choose from the 70 stocks to build a portfolio ...
Here’s Some of the Dividend Growth Machines (10* out of 70):
- A&W Revenue Royalties Income Fund (AW-UN) 4.24%
- Brookfield Infrastructure Partners (BIP-UN) 4.69%
- Calian Group (CGY) 3.30%
- Chartwell Retirement Residences (CSH-UN) 3.94%
- Hydro One (H) 4.23%
- Premium Brands Holdings (PBH) 2.35%
- Restaurant Brands International (QSR) 2.88%
- Royal Bank of Canada (RY) 3.92%
- The North West Co (NWC) 4.42%
- Waste Connections (WCN) 0.67%
* Dividend Yield as at June 28, 2019
Do you want the Dividend Growth Machines (excel file)?
I’ve giving the file away (all 70 Dividend Growth Machine stocks) as a bonus when you join my Patreon package by August 6, 2019. Plus you’ll get everything else, including My Best 15 Ideas, 18+ micro-cap research reports, 20+ audio interviews w/ top investors, private chat group access, and lots more to help you grow your portfolio. Learn More.
Regards, and Happy Investing,
Robin Speziale
(If you want to chat, email me at r.speziale@gmail.com)
Past Newsletters (in case you missed any):
Robin Speziale is the National Bestselling Author of Market Masters. He lives in Toronto, Canada. Get a copy of his latest book, Capital Compounders.
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Disclaimer: Robin Speziale is not a registered advisor. This newsletter does not contain financial advice or stock recommendations. Please conduct your own research and consult a professional.
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