Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

3 Canadian Dividend Stocks to Grab in April

Published 2021-03-28, 09:00 a/m
3 Canadian Dividend Stocks to Grab in April
DJI
-
KSU
-

We’re heading into April, and value stocks have never looked better than they do now. As of this writing, the NASDAQ was negative for the year, while the value-heavy TSX Index was up 6.3%. The Dow — also consisting of mostly value stocks — was up 7.5%. This was all predictable. In 2020, tech stocks rallied enormously, because the pandemic disproportionately harmed “traditional” industries. Banks, energy, and especially airlines suffered. Now, however, we’re beginning to turn the corner on the pandemic, and investors are sector-rotating into value. In this environment, value stocks and dividend stocks have considerable upside. In this article, I’ll explore three Canadian dividend stocks worth researching in April.

Canadian Pacific Railway Canadian Pacific Railway (TSX:CP)(NYSE:CP) has been in the news lately in a big way. It recently announced a $25 billion deal to acquire Kansas City Southern (NYSE:KSU), one of the biggest deals involving a Canadian company in recent memory. Canadian Pacific’s deal will give it access to Mexico, creating a whole new corridor for exporting bitumen.

With or without this deal, CP Rail is a great company. Over the last five years, it has achieved a 12.57% annualized growth rate in net income, and a 16.43% annualized growth rate in EPS. In its most recent quarter, its earnings grew 23%, despite slightly lower revenue. The stock pays a dividend that yields 0.56%. It’s not the highest yield on earth, but there is plenty of growth potential.

Royal Bank of Canada Royal Bank of Canada (TSX:RY)(NYSE:RY) is Canada’s largest bank. Like most banks, it got hit hard in the COVID-19 market crash. Faced with increased credit risks and low interest rates, its stock fell 28%. That was largely thanks to its second quarter 2020 earnings, which declined 54%. Later, however, the company began to recover. By its most recent quarter, its earnings were up 11% year over year. That’s significant, because the quarter a year prior to the most recent one was pre-COVID. That means the company is now growing relative to not only its COVID lows but even to its numbers in the prior period, which saw strong economic growth. Its stock currently yields 3.73%, which is pretty high but not as high as it was for most of last year, as the stock has been gaining from the COVID-19 recovery.

Canadian Tire Last but not least, we have Canadian Tire (TSX:CTC.A). This is one stock that handsomely rewarded investors who’d bought the dip in the COVID-19 market crash. Faced with retail closures and lower gas prices, the company was really struggling at one point. Later, however, gas sales recovered and CTC.A figured out how to make e-commerce work. At one point, its online sales popped by 400% year over year. In its most recent quarter, same-store sales were up 9.5% and earnings were up 51% year over year. These stellar results were driven by phenomenal growth in e-commerce, which rose 179% year over year. CTC.A’s stock yields 2.68%, which is pretty good for a company with such strong growth metrics.

The post 3 Canadian Dividend Stocks to Grab in April appeared first on The Motley Fool Canada.

Fool contributor Andrew Button owns shares of ROYAL BANK OF CANADA.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.