The income stocks we’ve discovered are thriving while others are fighting to survive
SmallCapPower | July 8, 2020: COVID-19 is becoming the biggest threat to the global economy since the Second World War. That being said, the income stocks we’ve identified today have performed well relative to most other equities during the current global pandemic.
*Returns are based on closing stock prices as of July 7, 2020
Granite Real Estate Investment Trust (TSX:GRT.UN) – $72.58
Granite REIT, which was spun out from Magna International in 2011, owns more than 90 logistics, warehouse and industrial properties in North America and Europe. Granite has collected more than 99% of its rents in April and 98% in May. The Company’s first-quarter 2020 funds from operations (FFO) rose to $56.8 million from $40.7 million during the same period last year. On June 9, Granite REIT announced the acquisition of eight income-producing properties in the United States for a total purchase price of approximately $332 million. Granite has a current liquidity position of $1.1 billion. GRT.UN has a current dividend yield of 4.1%.
- Year-to-Date Return: 15%
Richards Packaging Income Fund (TSX:RPI.UN) – $64.85
Richards Packaging is a Canadian packaging distributor, the third largest in North America, which targets small- and medium-sized North American businesses. The Company has operated since 1912. Richards Packaging Income Fund reported first-quarter 2020 revenue that rose 33% year over year, 25% of which was organic. The Company saw returns on U.S. sales boosted by the Canadian/U.S. dollar exchange rate, in addition to increased revenue from sales of healthcare-related products associated with fighting COVID-19. RPI.UN has a current dividend yield of 2.1%.
- Year-to-Date Return: 46%
B&G Foods, Inc. (NYSE:BGS) – $25.36
B&G Foods manufactures and distributes shelf-stable and frozen foods across the United States, Canada and Puerto Rico, with brands that include Back to Nature, B&G, B&M, Cream of Wheat, Dash, and Green Giant. The Company’s first-quarter 2020 sales rose 8.9% to US$449.4 million, with a 51% year-over-year increase in May alone. BGS stock has a current dividend yield of 7.7%.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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