Prime Dividend Picks: Canadian Stocks for Consistent Income Growth

Image source: Getty Images

Canadian Dividend Aristocrat is a stock that has delivered at least five consecutive years of dividend growth. Today, I want to target Canadian stocks that qualify as the top Dividend Aristocrats on the TSX. Ideally, I like to scoop up equities that have achieved at least 20 consecutive years of earnings growth. Let’s jump in.

This Canadian stock has delivered an impressive streak of earnings and offers a good yield

TC Energy (TSX:TRP) is an energy infrastructure company based in Calgary. Its shares were down 4.6% month over month in early afternoon trading on Thursday, July 13. That’s dragged this Canadian stock into negative territory so far in 2023. Investors will see more more on its recent performance with the interactive price chart below.

Investors can expect to see the company’s second batch of fiscal 2023 earnings before the market opens on July 28. In the first quarter of fiscal 2023, TC Energy reported net income of $1.3 billion, or $1.29 per common share. share — up from $0.4 billion, or $0.36 per common share, last year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. TC Energy last posted comparable EBITDA of $2.77 billion compared to $2.38 billion in the first quarter of fiscal 2022.

Shares of this Canadian stock are currently trading in mid-value territory at the time of writing. TC Energy has delivered 22 consecutive years of dividend growth. It offers a quarterly distribution of $0.93 per share. That represents a super 7.1% yield.

Don’t sleep on this industrial beast with a good history of dividend growth

Finning International (TSX:FTT) is a Vancouver-based company that sells, services, and leases heavy equipment, machinery, and related products in Canada, Chile, Bolivia, and around the world. Shares of this Canadian stock jumped 6.8% month over month at the time of writing. The stock is up 23% in the year-to-date period.

This company released the first quarter fiscal 2023 results on May 8. Finning provided revenues of $ 2.4 billion – up 22% compared to last year. Additionally, earnings per share increased 51% year over year to $0.89. Adjusted EBIT increased 54% compared to the first quarter of fiscal 2022 to $216 million.

The last Finning has a favorable price-to-earnings (P/E) ratio of 11. The Canadian stock has achieved 21 consecutive years of dividend growth. It offers a quarterly distribution of $0.25 per share, representing a 2.3% yield.

Another Canadian stock and Dividend Aristocrat target today

Metro (TSX: MRU) is the third Canadian stock and Dividend Aristocrat I want to get as we approach mid-July. This Montreal-based company operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors across Canada. Metro shares have jumped 3.6% in the past month. The stock is down 3.9% year to date.

In the second quarter of fiscal 2023, the company posted sales growth of 6.6% to $4.55 billion. Meanwhile, adjusted net income rose 10% year over year to $225 million. Adjusted diluted earnings per share jumped 14% to $0.96.

Metro shares have a solid P/E ratio of 19. This company has achieved 28 consecutive years of dividend growth. It offers a quarterly dividend of $0.302 per share, representing a modest 1.6% yield.