3 Canadian Dividend Stocks With the Best Five-Year Payout Growth

The TSX-listed Canadian dividend stocks we’ve discovered have had top investor payout growth over the past five years

SmallCapPower | May 19, 2021: Dividend-paying stocks can generate income for investors without having to sell shares. Additionally, dividend increases are generally a good indicator that companies are growing their free cash flow (FCF) and are more likely to have better returns than their peers with stagnant dividend payouts. Dividend increases are typically a positive sign because it implies that a company’s profits have increased, thus more funds can be allocated to dividend payouts. Today we have found three TSX-listed Canadian dividend stocks that have had top investor payout growth over the past five years.

*Share prices and other metrics as at market close on May 18, 2021

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Restaurant Brands International Inc. (TSX:QSR) – $81.59

Restaurant Brands International operates and franchises quick-service restaurants. The Company operates through Tim Hortons, Burger King, and Popeyes. Tim Hortons offers primarily coffee and baked goods under the Tim Hortons brand name, primarily fast-food hamburgers under the Burger King brand, and primarily chicken under the Popeyes brand name. Restaurant Brands operates over 27,000 restaurants in more than 100 countries, generating about $31 billion in annual system-wide sales. QSR has a current dividend yield of 3.2% and five-year annualized dividend growth of 36.4%.

  • Five-Year Return: 71% (excluding dividends)

Canadian Pacific Railway Limited (TSX:CP) – $93.01

Calgary-based Canadian Pacific owns about 20,100 kilometres of track in seven provinces of Canada and into the United States, covering 11 ports and more than 100 Transload facilities. The revenue it generates from its freight services is geographically diversified. CP’s first-quarter 2021 revenue fell 4% year over year to $1.96 billion but the Company is projecting double-digit adjusted diluted EPS growth over the previous year. CP has a current dividend yield of 0.8% and five-year annualized dividend growth of 20.5%.

  • Five-Year Return: 200% (excluding dividends)

Alimentation Couche-Tard Inc. (TSX:ATD.B) – $43.64

Alimentation Couche-Tard operates and licenses 12,575 convenience stores globally. Its convenience stores sell tobacco products, grocery items, beverages, and fresh food offerings; road transportation fuel; and stationary energy, marine fuel, aviation fuel, and chemicals. The Company operates its convenience stores chain under various banners, including Circle K, Corner Stone, Couche-Tard, Holiday, Ingo, Mac’s, ReStore, and Topaz. ATD has a current dividend yield of 0.8% and five-year annualized dividend growth of 20.3%.

  • Five-Year Return: 60% (excluding dividends)

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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