The TSX dividend stocks we’ve discovered have recently become more attractive due to increasing dividend yields
SmallCapPower | November 12, 2018: Investors looking for long-term assets to add to their portfolio might typically consider stocks with strong dividend yields and growth. Additionally, high dividend yields can act as a good hedging strategy against market volatility by securing scheduled cash inflows. Today we have identified four TSX dividend stocks with an average dividend yield of 2.75% that have recently reported strong financial results and are increasing their annual dividends. Note: metrics reflect closing prices as at November 8, 2018.
Canadian Tire Corporation Ltd. (TSX:CTC.A) – $66.10
General Merchandise Stores
Canadian Tire Corporation provides a range of retail goods and services for the Canadian consumer market. The Company operates through three divisions: Retail Canadian Tire (CT) REIT, and Financial Services. The Retail segment focuses on general merchandise including sporting equipment, auto products and petroleum, the REIT segment operates a real estate investment portfolio comprised of CT stores and distribution centers, and Financial Services business markets CT credit cards, warranties and insurance products. On November 8, 2018, the Company announced strong Q3/2018 earnings with retail sales climbing 2.6% on an annual basis, prompting the Company to increase its annual dividend by 15.3% from $3.60 to $4.15 per share.
- Market Cap: $10,886 Million
- 1-Month Total Return: 10.7%
- 1-Year Total Return: 2.27%
- Average Daily Volume (3 Month Average): 240,000
- Dividend Yield: 2.5%
Enerflex Ltd. (TSX:EFX) – $16.70
Oil & Gas Equipment and Services
Enerflex designs, manufactures, and supplies an array of natural gas and oil infrastructure solutions for the global market. The Company’s products include natural gas compression, gas processing, refrigeration systems, and electric power equipment. On November 8, 2018, the Company announced strong financial outlooks with $1,065 million of backlog (a key indicator of future revenues), up 37% from 2017. In conjunction with strong earnings, the Company’s raised its quarterly dividend by 11% to $0.105 per share.
- Market Cap: $1,483.4 Million
- 1-Month Total Return: -3.13%
- 1-Year Total Return: 1.2%
- Average Daily Volume (3 Month Average): 170,000
- Dividend Yield: 2.3%
Telus Corporation (TSX:T) – $45.93
Telecommunication Services
Telus Corporation provides a broad range of telecommunications products and services to the Canadian market. The Company’s portfolio includes both wireless and wireline voice and data services including: Internet, television, cloud-based storage, and mobile services. As of year-end CY2017, Telus serviced 8.91 million users for wireless products and 1.74 million users for Internet services. On November 8, 2018, Telus reported strong financial results in Q3/2018, including 8.2% growth in EBITDA, leading the organization to increase its quarterly dividend 7.9% to $0.545 per share.
- Market Cap: $27,475 Million
- 1-Month Total Return: 1.17%
- 1-Year Total Return: -3.35%
- Average Daily Volume (3 Month Average): 960,000
- Dividend Yield: 4.6%
Equitable Group Inc. (TSX:EQB) – $67.15
Financial Services
Equitable Group operates as a Schedule I bank that offers a variety of residential lending, commercial lending and saving solutions. The Company’s deposit products include GICs, high-interest savings accounts and deposit notes. The Company utilizes a branchless approach, instead working with mortgage brokers, deposit agents and financial planners. On November 8, 2018, the Company announced record quarterly results with earnings per share increasing 27% on a y/y basis. In conjunction with these results the Company announced a 12% increase in its dividend to $0.28 per share, payable on January 3, 2019.
- Market Cap: $1,112 Million
- 1-Month Total Return: 2.41%
- 1-Year Total Return: 6.45%
- Average Daily Volume (3 Month Average): 30,000
- Dividend Yield: 1.6%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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