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Dividend-growth shares provide a compelling mixture of earnings and development, making them a superb selection for long-term buyers. Whereas the S&P/TSX Composite Index has many well-known dividend payers, some high-potential shares nonetheless fly beneath the radar and infrequently don’t get the popularity they deserve.
Such Canadian dividend shares that not solely pay common dividends but additionally persistently improve their payouts have the potential to outperform the TSX in the long term, making them sensible picks for starting buyers in addition to seasoned market contributors. On this article, I’ll spotlight two such TSX dividend-growth shares which have sturdy fundamentals and engaging development prospects. Let’s take a better take a look at them.
Quebecor inventory
Quebecor (TSX:QBR.B) is a Montréal-headquartered firm that operates within the media and telecommunications industries primarily by its subsidiaries like Videotron and TVA Group. The corporate presently has a market cap of $6.7 billion as its inventory trades at $28.95 per share after sliding by 8% to this point in 2024. At this market worth, this TSX inventory provides a 4.5% annualized dividend yield and distributes these payouts on a quarterly foundation. Curiously, its dividend per share has gone up by round 37% over the past three years (led to December 2023).
Final 12 months, Quebecor’s earnings climbed by 12% YoY (year-over-year), whereas its complete income inched up by practically 20%. Regardless of the continuing difficult macroeconomic atmosphere and excessive inflationary pressures, the corporate is constant to keep up constructive monetary development this 12 months as effectively. Within the first quarter of 2024, its latest acquisition of Freedom Cell helped Quebecor submit a powerful 22.2% YoY improve in its income to $1.4 billion. Equally, its adjusted quarterly earnings rose 20.3% from a 12 months in the past to $0.71 per share, additionally beating Avenue analysts’ expectations of $0.67 per share.
Going ahead, Quebecor’s monetary development tendencies may enhance because it continues to deal with debt discount, disciplined price administration, and strategic investments. As well as, easing inflationary stress is more likely to assist its enterprise development, which ought to assist its share costs get better quick.
Canadian Tire inventory
Canadian Tire (TSX:CTC.A) might be one other high dividend-growth inventory to purchase on the Toronto Inventory Trade proper now. This Toronto-headquartered retailer is well-known for its in depth vary of automotive, sports activities, and residential merchandise. It presently has a market cap of $7.8 billion as its inventory trades at $135.94 per share after sliding by 5.7% over the past six months. Canadian Tire inventory has a beautiful 5.1% annualized dividend yield on the present market worth and distributes these dividend funds quarterly, identical to Quebecor. Within the 5 years led to December 2023, its dividend per share has surged by a stable 93%.
Within the first quarter, Canadian Tire’s gross sales dived by 4.9% YoY to $3.5 billion because the difficult shopper demand atmosphere continued to have an effect on shopper spending. However, the corporate registered a powerful efficiency within the retail and monetary providers segments, with product margin enlargement and decreased stock ranges.
Furthermore, Canadian Tire’s proactive efforts to optimize provide chain efficiencies, reduce pointless prices, and leverage digital applied sciences brighten its long-term development outlook, making it a beautiful dividend-growth inventory to purchase on the TSX right this moment.
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