Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

3 Financial Stocks to Secure a Growing $10K Income Stream

Stock MarketsSep 08, 2019 09:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

Hello there, Fools. I’m back to highlight three top dividend-growth stocks. As a quick reminder, I do this because businesses with consistently increasing dividend payouts

  • can guard against the harmful effects of inflation by providing a rising income stream; and
  • tend to outperform the market averages over the long haul.
The three stocks below offer an average dividend yield of 4%. Thus, if you spread them out evenly in an average $250K RRSP account, the group will provide you with a growing $10,000 annual income stream. And it’s all completely passive.

This week, we’ll take a look at dividend stocks coming from the particularly attractive financial services space.

Bank on it Leading off our list is financial services giant Bank of Montreal (TSX:BMO)(NYSE:BMO), which has delivered steady dividend growth of 30% over the past five years.

BMO’s scale, comfy regulatory environment, and diversified nature continue to support steady payout increases. In the most recent quarter, adjusted EPS clocked in at $2.38 as revenue improved 5%. BMO’s Canadian and U.S. personal and commercial banking businesses combined delivered 9% growth in pre-provision pre-tax profit.

Our capital position remains strong at 11.4% and we are taking actions to continue to position our businesses for growth and sustainable long-term performance,” said CEO Darryl White.

BMO shares are down 8% over the past three months and currently offer a healthy dividend yield of 4.4%.

Keep it intact With steady dividend growth of 55% over the past five years, property and casualty (P&C) insurance company Intact Financial (TSX:IFC) is next up on our list.

As Canada’s largest P&C insurance company, Intact’s scale advantages (close to $10 billion in annual premiums written), multi-channel distribution, and in-house claims expertise should continue to underpin its rising dividend. In Q2, EPS came in at $1.44 as revenue improved 8% to $3.2 billion.

Intact ended the quarter with $1.3 billion of total capital margin.

“Hard market conditions continue across the business allowing us to capture growth opportunities,” said CEO Charles Brindamour.

Intact is up 31% so far in 2019 and currently offers a decent dividend yield of 2.3%.

Imperial choice Rounding out our list is banking behemoth Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), which has increased its dividend 40% over the past five years.

CIBC’s long history of earnings and payout growth coupled with the recent sluggishness of its shares make it a particularly timely play. In the most recent quarter, adjusted earnings improved 4% as revenue grew to $4.7 billion.

“In the third quarter, we delivered solid results through the continued execution of our client-focused strategy,” said CEO Victor Dodig. “Our diversified growth on both sides of the border is a result of a highly connected, purpose-led team working together to meet the needs of our clients.”

CIBC shares remain down about 8% over the past six months and currently offer a healthy dividend yield of 5.4%.

The bottom line There you have it, Fools: three solid dividend-growth stocks worth checking out.

As always, they aren’t formal recommendations. They’re simply a starting point for more research. The breaking of a dividend-growth streak can be especially painful, so plenty of due diligence is still required.

Fool on.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Intact is a recommendation of Stock Advisor Canada.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019

This Article Was First Published on The Motley Fool

3 Financial Stocks to Secure a Growing $10K Income Stream

Related Articles

3 Top Canadian Dividend Stocks to Buy Right Now
3 Top Canadian Dividend Stocks to Buy Right Now By The Motley Fool - Jun 21, 2021

Canadian equity markets have delivered impressive returns this year, with the benchmark index, the S&P/TSX Composite Index, rising 14.7%. However, given the inflationary...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Sebastian Oliver
Sebastian Oliver Sep 08, 2019 13:51
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cure contre le VIH avec phytothérapie, le docteur Ahmed Usman a guéri mes trois années de VIH avec phytothérapie, je suis tombé sur le témoignage de son patient sur Internet et je l'ai contacté par courrier électronique. Après de nombreuses discussions, il a envoyé sa phytothérapie à mon domicile. et avec sa prescription, j’ai pris le médicament à base de plantes pendant 21 jours, j’ai découvert les modifications sur mon corps, je ne suis plus malade et mes organes sont très actifs, j’ai fait un test et mon résultat a été négatif. Contactez-le pour votre traitement, drahmedusman 5104 @ ou Whatsapp / appelez +2348064460510, il a guéri à base de plantes pour le virus de l'herpès et le cancer.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email