5 High-Growth Canadian Dividend Stocks to Invest In

In this article, we discuss 5 high-growth Canadian dividend stocks to invest in. If you want to read our detailed analysis of the Canadian equity market and the performance of Canadian dividend stocks, go directly to read 10 High-Growth Canadian Dividend Stocks to Invest In. 

5. Manulife Financial Corporation (NYSE:MFC)

5-Year Average Annual Dividend Growth Rate: 9.62%
Dividend Yield as of March 15: 5.96%

Manulife Financial Corporation (NYSE:MFC) is a Toronto-based multinational insurance company that also provides financial services to its consumers. on February 15, the company declared an 11% hike in its quarterly dividend to C$0.365 per share. This marked the company’s tenth consecutive year of dividend growth, which places it as one of the high-growth Canadian dividend stocks on our list. In the past five years, it has raised its payouts at an annual average rate of 9.62%. As of March 15, the stock has a dividend yield of 5.96%.

In February, Barclays raised its price target on Manulife Financial Corporation (NYSE:MFC) to C$31 and maintained an Overweight rating on the shares.

At the end of Q4 2022, Manulife Financial Corporation (NYSE:MFC) was a part of 10 hedge fund portfolios, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $118.4 million.

Harding Loevner mentioned Manulife Financial Corporation (NYSE:MFC) in its Q2 2022 investor letter. Here is what the firm has to say:

“Manulife Financial Corporation (NYSE:MFC), the Canadian life insurer operating primarily in North America and Asia, is a new holding. Manulife offers a full suite of life insurance products as well as retirement and wealth management services. While the wealth management and retirement products appeal to the aging populations of the Western world, long-term life insurance products address the needs of the growing number of middle-class families in places like China and southeast Asia. COVID-19-induced lockdowns in China brought the shares down to a significant discount to our estimate of long-term value. The holding now serves as a nice diversifier to our Asia-centered insurers AIA and Ping An.”

4. Canadian National Railway Company (NYSE:CNI)

5-Year Average Annual Dividend Growth Rate: 11.2%
Dividend Yield as of March 15: 1.99%

Canadian National Railway Company (NYSE:CNI) is a transport company that provides services in trucking and rail shipping. In January, BMO Capital maintained an Outperform rating on the stock with a C$180 price target, appreciating the company’s earnings.

Canadian National Railway Company (NYSE:CNI) currently pays a quarterly dividend of C$0.79 per share, raising it by 7.8% on January 24. Through this increase, the company took its dividend growth streak to 23 years, coming through as one of the high-growth Canadian dividend stocks on our list. The stock’s dividend yield on March 15 came in at 1.99%.

As of the close of Q4 2022, 41 hedge funds tracked by Insider Monkey held stakes in Canadian National Railway Company (NYSE:CNI), worth over $13 billion collectively.

3. Imperial Oil Limited (NYSE:IMO)

5-Year Average Annual Dividend Growth Rate: 18.8%
Dividend Yield as of March 15: 2.86%

Imperial Oil Limited (NYSE:IMO) is a Canadian petroleum refineries company, which is the subsidiary of America’s oil company, ExxonMobil. The company is one of the best high-growth dividend stocks on our list as it has raised its payouts for consecutive 28 years. Moreover, the company has rewarded shareholders with regular dividends for over 100 years. It currently pays a quarterly dividend of C$0.44 per share and has a dividend yield of 2.86%. In the past five years, the company has raised its payouts at an annual average rate of 18.8%.

Raymond James raised its price target on Imperial Oil Limited (NYSE:IMO) to C$74 in February with a Market Perform rating on the shares.

The number of hedge funds tracked by Insider Monkey owning stakes in Imperial Oil Limited (NYSE:IMO) grew to 23 in Q4 2022, from 19 in the previous quarter, as per Insider Monkey’s database. These stakes have a consolidated value of over $164.6 million.

2. Canadian Natural Resources Limited (NYSE:CNQ)

5-Year Average Annual Dividend Growth Rate: 22.6%
Dividend Yield as of March 15: 5.22%

Canadian Natural Resources Limited (NYSE:CNQ) is an oil and natural gas company that mainly specializes in crude oil. On March 2, the company raised its quarterly dividend by 6% to C$0.90. This was the company’s 24th consecutive year of dividend growth. Its 5-year average annual dividend growth rate stands at 22.6%, which makes it one of the high-growth Canadian dividend stocks on our list. The stock has a dividend yield of 5.22%, as of March 15.

In January, Stifel initiated its coverage on Canadian Natural Resources Limited (NYSE:CNQ) with a Buy rating and a C$97 price target. The firm sees significant value in oil and gas equities even during an inflationary environment.

At the end of Q4 2022, 41 hedge funds tracked by Insider Monkey reported having stakes in Canadian Natural Resources Limited (NYSE:CNQ), the same as in the previous quarter. These stakes have a total value of over $1.8 billion.

1. Agnico Eagle Mines Limited (NYSE:AEM)

5-Year Average Annual Dividend Growth Rate: 30.6%
Dividend Yield as of March 15: 3.32%

Agnico Eagle Mines Limited (NYSE:AEM) tops our list of high-growth Canadian dividend stocks. The company is mainly engaged in the mining and exploration of gold and other commodities. It has been paying regular dividends to shareholders since 1983 and has raised its payouts at an annual average rate of 30.6% in the past five years. The company currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 3.32%, as of March 15.

At the end of December 2022, 41 hedge funds tracked by Insider Monkey owned stakes in Agnico Eagle Mines Limited (NYSE:AEM), up from 39 in the previous quarter. These stakes have a total value of over $613.7 million.

Old West Management mentioned Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:

“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”

You can also take a look at 10 Best Stocks to Buy for the Next 10 Years and 15 Under-the-Radar High Dividend Stocks to Buy

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