How to unlock your early retirement goals: These 3 dividend growth TSX stocks provide healthy and consistent payout hikes

Bank of Montreal (BMO)

The Bank of Montreal is the oldest of the Big Five Canadian banks, with over 200-years of history behind it. Yet what matters now is what the company is worth to investors today. In that sense, it offers a history of dividend increases.

Longer term, BMO stock has increased its dividend at a compound annual growth rate (CAGR) of 7.1% during the last decade. That’s come to almost double the dividend in just 10 years.

BMO recently expanded into the United States with the purchase of Bank of the West from BNP Paribas. This creates a solid growth opportunity in the U.S., providing more income that will help the company out of a future recession.

While the stock has provided a 4.8% dividend yield, in the last 20 years, shares have increased by 200%.

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BCE Inc. (BCE)

BCE is yet another of the Dividend Aristocrats investors may want to consider. While again it may not have a dividend yield in the double digits, it’s proven itself resilient in its 40-year history.

After all, while BCE stock may have been around during the last 40 years, the Bell Telephone Company has been around quite a lot longer, founded back in 1880 by an act of Parliament. It’s since moved far beyond just phones, becoming Canada’s fastest internet provider with the rollout of 5G and 5G+.

This has led to the company holding the largest position amongst the telecommunications companies, with a market cap at $42.6 billion and with more than 22 million customers. And with more infrastructure being built all the time for telecom giants like BCE, it doesn’t look like its growth will slow down any time soon.

BCE has traded down 13% in the last year, but has been growing for decades, up 109% in the last two decades. It also has a 6.23% dividend yield, one that’s grown at a 5.13% CAGR in the last decade.

Chartwell Retirement Residences (CSH)

Now if you’re thinking about early retirement, there’s something else you might be thinking about. That’s retirement residences. Even if these aren’t for you, these residences are about to be in high demand. As the baby boomer population continues to age, there will be a massive need for those with chronic care conditions, and that will include moving to retirement homes.

Chartwell Retirement Residences, however, has been around for some time. Since coming on the market in 2006, it’s now the largest provider of senior living solutions in the country. It’s now a real estate trust that offers substantial dividend income that has continued to increase year after year.

But the last few years have been tough. The pandemic certainly did not help, with massive outbreaks in long-term care homes. Couple this with the last year’s rising interest rates and inflation, and shares of the company continue to drop. The last year alone saw shares down 33%.

But again, if you’re thinking long-term, Chartwell continued to grow even in the last difficult year, according to its full-year 2022 earnings report. This has led to consistent growth in dividends as well. Dividends have increased steadily in the last decade, and it currently sits at a high 7.08% yield.