In a world where the average security listed on the TSX sells for 15-20x earnings, a stock trading under 10x is worth taking a look at. Of course the multiples highly depend on the industry, and the P/E should never be your only method of investment validation, although it does provide a good basis for understanding how much you are paying per dollar of available income to common shareholders. The companies on our list today are trading at less than 10 times earnings and are also returning part of its profit back to investors in the form of dividends.
BTB REIT (TSX: BTB.UN) – $4.64
REIT
BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada, with 73 commercial, office and industrial properties for a total of more than 5.1 million square feet.
- Market Cap: $159,993,204
- P/E: 3.5x
- Annual Dividend: $0.42
- Current Yield: 9.2%
Financial 15 Split Corp. (TSX: FTN) – $10.34
Financial Services
Financial 15 Split Corporation is a portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers. The portfolio shares have demonstrated a record of above-average, long-term share performance and dividend growth. Financial Services companies are expected to benefit from a growing economic and capital markets recovery, earnings growth momentum and continued consolidation trends within the industry.
- Market Cap: $170,638,501
- P/E: 6.4x
- Annual Dividend: $1.50
- Current Yield: 14.5%
Granite Oil Corp. (TSX: GXO) – $5.50
Oil & Gas
Granite Oil Corp. is a dividend-paying, junior oil producer based in Calgary, Alberta that owns and operates a large, recently discovered Alberta Bakken oil pool in southern Alberta. Granite was founded in May 2015, through a Plan of Arrangement that divided DeeThree Exploration Ltd. into two pure-play companies, Granite Oil Corp. and Boulder Energy Ltd. The plan was approved by a vote of shareholders on May 14, 2015, and each new company began trading on the TSX on May 21, 2015.
- Market Cap: $ 188,210,159
- P/E: 6.8x
- Annual Dividend: $0.36
- Current Yield: 6.6%
RMP Energy Inc. (TSX: RMP) – $2.08
Oil & Gas
RMP Energy Inc. is a well-managed, junior upstream oil and gas producer based in Western Canada. Its portfolio of high-quality assets is strategically positioned with solid growth potential. The oil and gas exploration and production base is in Central Alberta’s Ante Creek, Waskahigan, Grizzly, Kaybob and Pine Creek areas. It has also established land positions in Alberta’s Ricinus area as well as Big Muddy in Saskatchewan. RMP’s priority is a significant oil resource drilling program at Ante Creek and Waskahigan.
- Market Cap: $258,410,000
- P/E: 7.92x
- Annual Dividend: $0.40
- Current Yield: 18%
