Rob Carrick: Yes, some dividend growth stocks can be still be bought at reasonable prices

Rob Carrick: Yes, some dividend growth stocks can be still be bought at reasonable prices

Interested in some reasonably priced inflation protection for your portfolio? Dividend growth stocks are worth a look. Despite huge gains for stocks in the past 12 months, there are some blue-chip dividend payers trading in mid-July at levels that suggest they’re fairly priced or better on a historical basis. The inflation rate in Canada most recently hit 3.6 per cent, compared to a 10-year average of just 1.6 per cent. On a list of 23 dividend growth stocks recently supplied by Tom Connolly of DividendGrowth.ca, each produced an average annual dividend growth rate equal to or more than 3.6 per cent. The average annual dividend growth rate for the group was 7.8 per cent. Mr. Connolly has been one of this country’s top experts on dividend stocks for decades - he reached his 40th anniversary in June. Every so often, he sends some data with an interesting story to tell. The latest example is the list of 23 dividend growth stocks, shown with their current yield and their average yield from 2011 through 2020. Several stocks have yields today that …
More on: www.theglobeandmail.com