The Canadian dividends stocks we’ve identified are high yielding following the recent market turmoil
SmallCapPower | October 22, 2018: Today we have uncovered three Canadian dividends stocks that are high yielding. The major Canadian and U.S indices experienced a broad market selloff that began in early October, largely due to fears of rising interest rates and bond yields. As with previous market selloffs, smaller-cap companies tend to experience more volatile returns, and so the stocks we found have all seen their share prices take a significant hit, which has driven their yields even higher.
Computer Modelling Group Ltd. (TSX:CMG) – $7.95
Software
Computer Modelling Group (CMG) is a Canada-based computer software company serving the oil and gas industry. The Company develops and licenses its proprietary reservoir simulation software for international oil companies in ~60 countries. The Company also provides professional services including consulting, training and contract research activities. For its fiscal quarter ended June 30, 2018, the Company reported net income of $4.3 million, and paid out nearly $8 million in dividends. Meanwhile, the Company maintains $60 million of cash on its balance sheet.
- Market Cap: $637.8 Million
- 1 Month Returns: -5.2%
- Dividend Yield: 5.0%
First National Financial Corp. (TSX:FN) – $26.57
Financial Services
First National is a Canada-based financial services company. The Company’s Residential segment originates single-family residential mortgages, while its Commercial segment is focused on multi-unit residential and commercial mortgages. First National has more than $100 billion in mortgages under administration. The Company owns several financial service subsidiaries and operates out of five offices across Canada. The stock trades near its 52-week low of $25.34, offering a high dividend yield at the current price, while also providing investors with potential share-price upside should the stock recover from the recent, broad market selloff. The Company reported EPS of $0.76 per share for Q2 2018, maintaining a dividend payout ratio of 70%, which gives the Company plenty of room to continue paying dividends should net income fall.
- Market Cap: $1.6 Billion
- 1 Month Returns: -8.4%
- Dividend Yield: 7.0%
Sienna Senior Living Inc. (TSX:SIA) – $16.26
Health Care
Sienna Senior Living is a Canada-based company, which is engaged in serving a range of independent living (IL), independent supportive living (ISL), assisted living (AL), memory care (MC) and long-term care/residential care (referred to as LTC) communities. The Company’s segments include LTC business, Retirement, Baltic, Corporate, Eliminations and Other. Its LTC segment includes over 30-owned LTC homes and the management services business. Its Retirement segment includes approximately 10-owned retirement residences (RR) communities. The stock trades just above its 52-week low of $16.07, having fallen nearly 6% since the start of October. The Company reported net income of $3.5 million for the three months ended June 30, 2018.
- Market Cap: $1.1 Billion
- 1 Month Returns: -6.0%
- Dividend Yield: 5.6%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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