Stone Bridge Ventures broker George Goldberg explains that investing in dividend-growth stocks is a rewarding strategy for investors. Besides offering lucrative dividend yields year by year, these companies keep a record of gradually increasing their dividend payments. Specifically, there are two notable Canadian growth stocks with enough potential to offer long-term yields to investors’ portfolios. These TSX stocks are Fortis Inc and Toronto Dominion Bank.
Here’s a Canada-based utility company that acts as a good example of reliable dividend-growth stock. It’s a renowned North American company offering gas and electric utilities, so it offers essential services that will always have demand.
Therefore, investors can always expect growth, regardless of the country’s inflation rate and wider economic conditions. George Goldberg, Stone Bridge Ventures senior account manager, predicts that such stability is quite appealing for income-focused investors who prefer steady cash flow over big yields.
Another reason why the company’s stock should be considered is that it operates in a highly regulated industry, which can offer a stable stream of revenue. To reduce the effect of localized economic obstacles, Fortis Inc’s operations are diversified across the regions of North America according to locals’ usage habits.
With the business’ impressive nature, it can give investors a predictable policy and gradually increase payouts with time. It’s also committed to sustainable growth, for which it has a systematic capital expenditure program, which invests in improving the Fortis utility infrastructure. With this approach, it’s able to meet customers’ growing energy requirements. Plus, it reinforces the stock’s position as a suitable dividend-growth stock that investors can rely on in the long term.
Known by its TSX ticker symbol TD, Toronto-Dominion Bank is among the country’s leading financial institutions. Not to mention, it’s a notable company in the North American financial sector. Its history dates back to around 1855, and since then, TD Bank has maintained a steady record of rewarding shareholders with continuous dividend growth. It has also kept a steady record when it comes to financial performance.
Throughout the stock’s dividend-growth history, TD Bank has remained committed to providing shareholder value. In the past couple of years, its dividend payout has steadily grown, thus making it a suitable option for income-oriented investors.
TD Bank has shown impressive financial management, as well as a robust balance sheet that can attract numerous investors. Coupled with diversified revenue streams, the stock is currently in a favorable position to continue its trend for dividend growth.
George Goldberg, a senior account manager at Stone Bridge Ventures, explains that the bank has solidified its position in the Canadian and United States markets. This gives the company multiple benefits when it comes to diversification. It has a balanced business model that includes wholesale banking, wealth management, and retail banking. Thus, it’s able to navigate through changing market cycles and take advantage of different growth opportunities across markets.
Overall, Stone Bridge Ventures senior account manager George Goldberg explains that adding these growth shares to investment portfolios is an effective way to consistently improve payments over time. As long as investors consistently diversify their portfolios, it can offer great results.