The Canadian dividend stocks on our list should do relatively well in this volatile stock market environment
SmallCapPower | April 13, 2020: Dividend stocks are always popular with income investors, especially in this lower-for-longer interest rate environment. Today we have discovered three Canadian dividend stocks, all stars among analysts, that should outperform its peers during the current COVID-19 stock market volatility.
*Share prices as at April 9, 2020
Intertape Polymer Group Inc. (TSX:ITP) – $11.51
Intertape Polymer Group develops, manufactures, and sells of a variety of paper and film based pressure-sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, engineered coated products and packaging machinery for industrial and retail use. On April 8, 2020, ITP stock surged 19% after the Company announced that its North American and European manufacturing operations are open and producing, given the “essential nature” of its end markets. Intertape Polymer saw its revenue rise 10% during 2019, while its free cash flow surged nearly five fold from 2018. Intertape Polymer Group stock is currently yielding nearly 7%.
KP Tissue Inc. (TSX:KPT) – $9.94
KP Tissue holds a limited partnership interest in Kruger Products L.P. (KPLP), a manufacturer of tissue products for household, industrial and commercial use, with well-known brands such as Cashmere, Purex, SpongeTowels, Scotties, and White Swan in Canada, as well as White Cloud in the United States. KPLP has the #1 market share for toilet paper (33.2%) and facial tissue (31.5%) in Canada and the #2 market share for paper towel (20.6%). COVID-19 has created unprecedented consumer demand for toilet paper, and KPLP announced recently that it is ramping up its production to meet this demand. KP Tissue stock is currently yielding more than 7%.
TELUS Corporation (TSX:T) – $22.27
TELUS is a communications and information technology company with $14.7 billion in annual revenue and 15.2 million customers spanning wireless, data, IP, voice, television, entertainment, video and security. Social distancing has boosted demand for wireless data and TELUS Health is Canada’s largest healthcare IT provider with more than 26,000 Canadian healthcare professionals using TELUS Health’s electronic medical record (EMR) digital health solutions. TELUS stock currently yields more than 5% and the Company recently increased its dividend by 6.9%. TELUS closed a C$1.5 billion equity offering on February 26, 2020.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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