Now I know what you’re thinking. “Great they give us these stock picks AFTER the market is closed for the week?!” and you’d be right. Not very helpful is that? – Or is it?
What if instead we’re simply giving you the opportunity to use some of these ideas and look into these stocks over the weekend so you can make an informed purchase on Monday? That sounds better so we’ll go with that.
Today we’ll go over 3 of our favourite stocks that we either already own or would like to own in our stock portfolios and give a quick break down on why these stocks could potentially be on sale right now.
1) Bell Inc. (BCE)
BELL as most Canadians will know is a communications company spanning across Canada with a strong grip on the TV, cell phone and internet services country wide.
Bell has done a tremendous job paying and increasing it’s dividend since the last stock market crash and aside from a couple of quarters has maintained this strong growth dating all the way back to the early 1980’s.
This was slated to be at number 3 on this list, but after a 5% pullback this week this sale seems like a great buying opportunity for dividend investors.
Price: $61.00
P/E ratio: 18.76
forward P/E: 16.48
Yield: 5.20%
Payout Ratio: 95%
2) Brookfield Property Partners (BPY.UN)
Next up we have Brookfield Property Partners. This is a real estate investment trust or “REIT” that owns and operates a wide cast net of real estate properties including office space, retail, industrial and multifamily properties.
We love that with this one stock you get tremendous exposure and diversity across many markets and believe that at these current price levels you are receiving these shares on sale moving forward.
Price: $25.13
P/E ratio: 18.32
forward P/E: N/A
Yield: 6.85%
Payout Ratio: 96.2%
Payout Ratio FFO: 26%
One thing to note about REIT’s as that the payout ratio doesn’t apply to them the same way it would a typical dividend paying company because of the way their accounting works, instead we typically focus on using funds from operations in place of earnings when calculating this payout ratio. When using this number (from seekingalpha.com) we get a much more sustainable 26%.
3) Transcontinental Inc. (TCL.A)
Transcontinental Inc. Is a printing and packaging company that makes paper and plastic products, operates printing, packaging and lamination segments. With 17 years of consecutive dividend growth we believe this stock needs to be on the short list of stocks to buy for Canadian investors, especially when you factor in the 25% beating the stock took over the past 52 weeks.
Price: $15.02
P/E ratio: 10.91
forward P/E: 5.91
Yield: 5.74%
Payout Ratio: 61.9%
17 years of dividend increases? 42 years of track record as a business? A yield of 5.74%?! Those combined with a projected price to earnings ratio of 5.91 equals a buy for us!
These are our three favourite stocks as of today. We hope that you use these ideas to do your own research into these great dividend paying companies and come away a more informed investor with a few new purchases you can be proud of.
Love the picks? Hate them? Let us know below or on our Instagram page @FindependenceCanada we’d love to hear your reasons why!
These are just suggestions for our audience to look into, we remind you that we are not certified to give you financial advice and if you are planning on making any moves you should consult with an expert.
Thanks for stopping by,
FIC.