3 Top Canadian Dividend GARP Stocks

The Canadian dividend stocks we’ve identified offer payout growth at a reasonable price (GARP)

SmallCapPower | July 28, 2021: Stocks with superior dividend growth tend to outperform other equities but some investors might consider these names too pricey to buy. Today we have filtered through and found three Canadian dividend growth at a reasonable price (GARP) stocks as measured by current yields above their longer-term average, which suggests they are reasonably priced as yields and share prices move in opposite directions.

*Returns are based on closing stock prices as of July 27, 2021

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BCE Inc. (TSX:BCE) – $62.09

BCE is a telecommunications and media company that provides wireless, wireline, internet, and television services to residential, business, and wholesale customers in Canada. Its three business segments include Bell Wireless, Bell Wireline, and Bell Media. Bell Wireless offers wireless voice and data communications products and services. The Bell Wireline segment provides data, including internet access, internet protocol television, and local & long-distance telephone services. The Bell Media segment provides conventional & specialty TV, digital media, radio broadcasting, and broadcasting services. BCE’s annualized dividend growth rate during the past 10 years was 5.3%, while its stock price increased by 4.6% on an average annual basis.

  • Dividend Yield: 5.6%
  • Five-Year Return (excluding dividends):  29%

TC Energy Corporation (TSX:TRP) – $61.63

TC Energy is a North American oil & midstream industry giant with business segments that include Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power & Storage. The company has plans to advance its $20 billion secured capital projects in 2021 that is expected to enable TC Energy to raise its dividend by 8% to 10% this year and 5% to 7% annually in the ensuing years. TC Energy’s annualized dividend growth rate during the past 10 years was 6.9%, while its stock price increased by 4.3% on an average annual basis.

  • Dividend Yield: 5.7%
  • Five-Year Return (excluding dividends):  27%

Canadian Utilities Limited (TSX:CU) – $35.94

Canadian Utilities is a diversified global energy infrastructure company delivering essential services and innovative business solutions in Utilities (electricity and natural gas transmission and distribution, and international electricity operations); Energy Infrastructure (electricity generation, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales). CU has assets of $20 billion. CU’s annualized dividend growth rate during the past 10 years was 8%, while its stock price increased by 2.4% on an average annual basis.

  • Dividend Yield: 4.9%
  • Five-Year Return (excluding dividends): 11.9%

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

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