3 Great Dividend Growth Stocks to Hold for 10 Years

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Written by Joey Frenette at The Motley Fool Canada

It’s been quite a slippery slope for broader stock markets this September. Still, Canadian investors should view the increased volatility from the “September slump” as more of an opportunity to get stocks at lower prices. At the end of the day, long-term investors don’t have to worry about any sudden bouts of choppiness. Not if they’re committed to building wealth over the span of years or decades!

If anything, market-wide turbulence should be favoured. If market-wide jitters send shares of almost everything lower, self-guided investors will have a higher chance of catching Mr. Market off-guard. Whenever Mr. Market marks down stocks unfairly, you, as a do-it-yourself investor, can buy on the dips as everyone else on Bay Street hits the panic button.

In this piece, we’ll have a look at three dividend-growth stocks that have been hit with excess turbulence in recent months. Shares of each dividend grower, I believe, are worth pursuing, even if the September slump brings forth even lower prices.


Enbridge (TSX:ENB) is a pipeline giant that’s had a dreadful 2023. Shares are now flirting with two-and-a-half-year lows after the stock’s latest September slip. With every sharp move lower, the stock’s dividend swells accordingly. At writing, shares of ENB now yield 7.76%. And no, that’s not a typo!

Though I don’t think the pipeline behemoth has bottomed out, I’d not be afraid to keep buying on every move lower. As the yield surpasses 8%, income investors should be enthused to be a buyer of shares on the way down. While chasing yield is seldom a good investment strategy, I do think Enbridge’s resilient cash flows and its rich history of dividend growth (even through times of turmoil) should not be forgotten during times like this.

Also, let’s not forget high-yield stocks have taken a hit to be more competitive with 5%-yielding guaranteed investment certificates. Between the 5% risk-free rate and Enbridge’s near-8% yield, I favour the latter.

Restaurant Brands International

Restaurant Brands International (TSX:QSR) is another dividend grower that’s slipped considerably off its all-time highs, thanks in part to the broader September slump. The stock is now down more than 11% from its high, just shy of $103 per share. With a 3.2% dividend yield, and a proven plan to get its four brands back on the right track, I find the correction to be a glorious buying opportunity for growth- and income-focused investors alike!

The company behind such names as Burger King, Tim Hortons, Popeye’s Louisiana Kitchen, and Firehouse Subs provides diversified exposure to the rock-solid fast-food scene. Even as the global economy faces risks going into the new year, I find each one of QSR’s chains to be capable of growth. In short, QSR stands out as a relatively defensive growth firm, with a dividend likely to keep growing at a steady rate over the next 10 years.

CN Rail

CN Rail (TSX:CNR) sports a relatively modest 2.15% dividend yield at writing. Though smaller than the other two stocks in this piece, it’s noteworthy that the yield is on the high side of the historical range. Further, CN Rail’s history of dividend hikes should also be taken into consideration for investors who seek to get consistent raises year after year.

The broader rail scene is facing significant headwinds this year. And though CN Rail’s share price may have fallen off the tracks, I have no doubt that the firm has what it takes to thrive come the next economic turnaround. Simply put, CN is one of Canada’s bluest blue chips. And whenever it sags, investors would be wise to be a buyer of the dip. The stock’s currently down more than 14% from its high and goes for a mere 19.1 times trailing price-to-earnings.

The post 3 Great Dividend Growth Stocks to Hold for 10 Years appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette has positions in Canadian National Railway and Restaurant Brands International. The Motley Fool recommends Canadian National Railway, Enbridge, and Restaurant Brands International. The Motley Fool has a disclosure policy.