10 resilient TSX dividend growth stocks for income investors

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We are looking for companies that have raised their dividends in the past three years, and are expected to continue

Companies that have raised their dividends consecutively over the past three years and that are expected to continue doing so over the next two.The world economy has been on a geopolitical rollercoaster over the past few years, encompassing a myriad of events including a trade war with China, a global pandemic, supply chain shortages,

war in Ukraine, the return of inflation and the end of zero interest rates. Few companies have been able to thrive through all these market conditions and accordingly raise their dividends. Dividend increases signal confidence in that company’s ability to maintain a higher payout, which normally occurs in tandem with rising cash flows.

To identify resilient dividend-raisers, we began by using FactSet’s Universal Screening tool to pull every security listed on a Canadian exchange. We further narrowed down our list using the parameters below:Dividend yield above 4 per cent, and also above the two-year Government of Canada bond yield Analyst projections of continued dividend increases in 2023 and 2024

Dividend payout ratio less than 50 per cent, indicating minimal cash flow concerns with future dividend increasesis a leading global financial data and technology company. FactSet’s superior suite of content, analytics and workflow services covers the entire portfolio life cycle and offers actionable insights for asset managers and investment professionals around the world.

 

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