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Investing in quality dividend growth stocks is a proven strategy to beat the broader markets and benefit from outsized gains. A company that consistently increases its dividend payout enjoys a widening earnings base and expanding cash flows. In addition to a steady stream of regular dividends, investors should also benefit from long-term capital gains.
One such lucrative TSX dividend stock you can buy today to beat the TSX index is Hydro One (TSX:H). Valued at $24 billion by market cap, Hydro One is among the largest companies in Canada.
Hydro One stock went public in November 2015 and has since returned 85% to shareholders. After adjusting for dividends, cumulative returns are much higher at 152%. Comparatively, the TSX index has returned 118% to shareholders in dividend-adjusted gains in this period.
While past returns don’t matter much, let’s see why Hydro One should outpace the TSX index going…
