Income-seeking investors typically pick high-yield stocks for lucrative immediate returns. However, more risk-averse investors with longer time horizons prefer dividend growers. The yields might not be the highest, but they offer capital protection, stability, income growth, and superior long-term returns.

Canadian Natural Resources (TSX:CNQ) and Fortis (TSX:FTS) are the best options if you want growing dividends. Because of their lengthy dividend-growth streaks and dividend track records, both dividend payers have the potential to outperform the market and reward investors with healthy returns.

Dividend Aristocrat

Canadian Natural Resources is TSX's second-largest energy stock by market capitalization. Enbridge, the largest, operates in the oil & gas midstream industry, while CNRL dominates in the oil & gas exploration & production industry.

Due to years of developing light crude oil and conventional natural gas, the $92.3 billion independent energy producer has become the expert in mature-basin development. Today, its natural gas, natural gas liquids (NGL), and light crude oil land base is among the largest in western Canada. The diversified, long-life, and low-decline asset base is the source of sustainable cash flow.

On August 1, 2024, management announced a board-approved dividend hike, the 24th consecutive year of dividend increases (21% compound annual growth rate over the period). If you invest today, the share price is $43.40, while the dividend yield is an attractive 4.78%.

According to its president, Scott G. Stauth, the recent dividend increase demonstrates the board of directors' confidence in the business model's sustainability, strong balance sheet, and the strength of the balanced asset base. In the second quarter (Q2) of 2024, net earnings rose 17.22% to $1.7 billion compared to Q2 2023.

Notably, in the first half of 2024, cash flow from operating activities climbed 72% year over year to $6.95 billion. CNRL's quarterly net earnings grew, notwithstanding the volatility in crude oil and natural gas pricing and fluctuating sales volume.

The company's free cash flow (FCF) allocation policy states that when net debt falls below $10 billion, CNRL will return 100% of FCF to shareholders. Management hopes to make good on its promise this year. As of June 30, 2024, the long-term debt (net) is $9.23 billion.

Dividend King

Fortis is a no-brainer buy because it wears a crown. The utility stock is TSX's second Dividend King after Canadian Utilities and has increased its dividends for 50 consecutive years. Management's annual dividend-growth guidance through 2028 is 4-6%. At $61.84 per share, the dividend offer is 3.82%.

The $30.6 billion electric and gas utility company has seven operating subsidiaries (eight regulated and one non-regulated). It serves around 3.5 million customers in Canada, the U.S., and the Caribbean. In the six months ending June 30, 2024, net earnings increased 8% to $790 million versus the first half of 2023.

Its president and chief executive officer, David Hutchens, said, "Our regulated utility businesses continued to deliver on their financial and operational plans in the first half of 2024. The new $25 billion five-year capital plan will increase Fortis's midyear rate base from $37.0 billion last year to $49.4 billion by 2028.

Fantastic income stocks

CNRL and Fortis are fantastic income stocks because their dividends keep growing. The dividend-growth streaks should drive long-term shareholder value.