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Dividend Stocks

This Top Dividend Stock Has Doubled its Payments in Just 5 Years


Are you looking for a good dividend stock to add to your portfolio? There are many options to choose from and the best and safest options are often dividend-growth stocks. They are not as high risk as high-yielding dividend stocks but you can still earn a good, rising dividend over time.

One stock that could be a great fit is Canadian Tire Corporation Limited (TSX:CTC.A). While it might not be the most popular stock, the retail company has proven to be one of the more successful brands in its industry. With sales still growing and profits remaining strong, there are no big red flags that would suggest the company is any danger of being the latest retail victim. Instead, there could still be a lot of growth for the company as an aging demographic could mean even more traffic will come through its doors as it has proven to be a popular store for older customers.

It may be concerning that the stock has fallen 16% in the past year, but with strong fundamentals, I wouldn’t be surprised if the stock finds a way to rally. Near its 52-week low, it provides good value and what makes it even better is that its dividend is now yielding around 3%. Investors have the opportunity to not only earn strong dividend but to take advantage of a low price and potentially cash in if it can make a recovery.

One of the best features of this stock is that it has a history of raising its payouts – by a lot. In just five years, dividend payments have risen from 50 cents every quarter up to over a dollar. That’s a remarkable rate of increase and although I wouldn’t count on it doubling again in the next five years, dividend growth is something the company looks committed to, and that’s great news for investors.