Fast-Rising High Dividend Stocks to Generate Income While the Market Slows Down
Dividend stocks are companies that pay out a portion of their revenues to stakeholders. They make for a great income investment and if done right, can become an integral part of your revenue streams. For dividend investors, it is a good strategy to DRIP, where dividend payments are reinvested to purchase more shares in the company. This is a good strategy for the “set it and forget it” investment style.
Furthermore, in times of economic slowdown, dividend stocks are a boon in your portfolio. These companies will pay you to wait it out. Dividend stocks are seen as income generators combined with capital gains.
🛢 Basic Materials
Methanex Corp (MX-T)
A methanol producer and distributor. Energy commodity prices have come down and general global economic growth is stalling. The dividend is considered safe by analysts and the stock has become cheaper. They are a global leader with operations across the globe. They pay a dividend of 3.3%
Likes it. He just took profits. Natural gas is driving shares, and nat gas prices are down now, so MX shares are up. It's a solid performer, but if a recession happens, say 6 months down the road, this will be a headwind.
Canadian Natural Rsrcs (CNQ-T)
A Canadian oil and gas exploration and production company. They are generating a lot of free cash flow and is managed well. They do not have a debt problem. CNQ also has an impressive history of 17 years of dividend growth. The dividend is at 4.19%
(A Top Pick Dec 09/22, Up 7%) Still owns shares in company.Continues to see upside in the company.Energy prices will remain strong.Target price of $92 per share.Two decades of increased dividend payments.Healthy yield of ~4.5%.Best in energy sector.
Suncor Energy Inc (SU-T)
An integrated energy company based in Canada. Suncor is considered a good way to dip your toe in the energy sector since they are so big and should do alright. They pay a dividend yield of 4%
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Investors have collectively decided that the banking crisis will cause a hard landing recession and thus a drop in oil demand. It is certainly one possibility, but it is also possible that it doesn't. Valuations look good for investors willing to look beyond a few months. Unlock…
An energy transportation company that is looking to complete Line 3 by 2020. This is considered a good income play but not a share appreciation name. The dividend is safe at 6.5%
Core holding. Growth outlook muddier due to potential competition from Trans Mountain. As a safe exposure to energy with a high dividend yield, keep holding. Won't get hurt too badly over time. Yield over 7%.
Canadian Imperial Bank of Commerce (CM-T)
One of the Big Five banks in Canada. Some analysts consider this bank to be particularly under valued. They pay a dividend of 5.4%
Might break down trend, but unsure.Banks in general perform well in rising interest rate environment.Current lid suggest good time to buy.
Bank of Nova Scotia (BNS-T)
The third largest bank in Canada. They are one of the most global Canadian banks with operations particularly in Latin America. They have been the lagger of the Canadian banks and offer good value right now. The dividend yield is 5%.
His target is down to $57.30, literalling hanging now and testing that level three times in the last 6 months.
Magna Int’l. (A) (MG-T)
A global automotive supplier. They were hit hard due to reduced guidance, slow-down in Europe. They also made an acquisition that many think they paid too much for. They are investing in autonomous technology and may be planning to buy back shares.
Better off owning suppliers rather than OEM auto companies. Difficult to transition from combustion to electric. Tough to keep both sides going. Massive buildup on the EV side will help, but combustion provides the cash. Cheap for a reason. A trade at best, not for the long term.
Colgate Palmolive (CL-N)
An American consumer products company. Analysts are pessimistic about this as they were negatively impacted by rising interest rates. Before, it was considered a bond proxy. However, in the long term it is considered a safe investment. The yield is 2.47%
options They bought 3,000 October calls at the $80 strike with shares trading at $77.50. He bought and will upside calls against them as it rallies.
Genuine Parts Company (GPC-N)
A service organization for automotive parts and other replacement materials. They are the biggest auto parts manufacturer in North America. In slower economic times, people tend to repair cars more. They have a good history of increasing dividends annually. A dividend yield of 2.96%.
Was up 26% this year, the best performer in this space. It distributes parts in the car industry. Reason? There was a new car shortage and were high used car prices, so people fixed up their existing cars by replacing parts. But used car prices have fallen and new cars will also fall. But all…
Hormel Foods Corp (HRL-N)
A well managed food company. They have been struggling with growing earnings and protein prices due to livestock epidemics. They raise dividends annually and it is currently at 2%.
Is up 13% for the past year. They make Spam, Planter's Peanuts and other packaged food, an industry that has held up better than the market. Hormel just released its quarter and it was mixed: 51 cents EPS vs. expected 50 cents, lower than expected sales which worries him, a weak 2023 forecast because of…
Coca-Cola Company (KO-N)
The famous beverage company that everyone knows. They are diversifying away from their main activity to include energy drinks and coffee. There is still a lot of room to grow. They pay a dividend of 3.44%.
Lowes Companies Inc. (LOW-N)
A home improvement store. The company has profited from the DIY movement. They recently brought in new management as the company has underperformed. They pay a dividend of 1.99%.
Trades at a lower multiple than HD. Increased operating margins from 11% to 16%, pro business is expanding. Applying HD playbook very successfully.
Procter & Gamble (PG-N)
A multinational consumer goods company that was trading at a discount until a bump up recently. It is in a slow growth space and growth is expected to be around 10%. They pay a dividend of 2.7%.
Staples are expensive. PG trades at 22x vs. the market's 18x. The USD is creeping up while 55% of PG's business is done overseas. He didn't love their quarter because EPS is down 4%, though organic sales were up 5%. There's margin pressure here. Staples are a tough space now.
Exco Technologies (XTC-T)
A Canadian multinational developer and manufacturer for automobiles and equipment. They have a good history of buying back shares and increasing dividends. A well run company with good capital allocations. They pay a dividend of 4.48%.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Less known co. with good valuation. Offers exposure to USA. Customer concentration risks. LT value creator, economically sensitive.
Toromont Industries (TIH-T)
They surprised investors with a dividend increase of 21% in the last quarter. One of the biggest Caterpillar distributors in the world with focus in Ontario. They do well in tandem with construction and mining. They pay a dividend yield of 1.8%.
It's the time for industrials, from late January into early May. TIH could do well in February. The chart shows higher lows, which is good.
Emerson Electric (EMR-N)
An industry company that has pulled back due to concerns over the trade war and their exposure to oil. It is well managed. The dividend payout is 3.1%
It got better today by selling one of its businesses, garbage disposals, to Whirlpool. Though EMR shares declined today, it will be good long term.
3M Co. (MMM-N)
An industrial company across many sectors including consumer, industrials and materials. They bought back stocks last year but added debt. They have significant international operations who’s profitability is hurt by a strengthening US dollar. Their dividend yield is 3.4%
https://www.forbes.com/advisor/legal/product-liability/3m-earplug-lawsuit/ He's very concerned about 3M's lawsuit (causes hearing damage for veterans). (He has unrelated tinnitus.) Also concerned about their groundwater lawsuit.
Parker Hannifin Corp (PH-N)
A specialist in motion and control technology. A good long term play as they have a good history of generating ROI for a long time. They are a key part of the industrial economy in a relative oligopolistic environment. They pay a 2.1% dividend.
They're now going green, all about clean energy, like making the world's smallest e-tractor, wind turbines and solar panels. They help companies comply with environmental regulations.
Johnson & Johnson (JNJ-N)
A multinational medical, pharmaceutical and consumer goods company. They are currently facing a lawsuit over talcum powder. They have good demographic support and analysts expect dividends to continue to grow. They pay a dividend of 2.72%.
It's coming down nicely. No volatility. Has recommended this before. Drugs are consumer staples. He models $184, 20% upside. They will spin off their vaccine division, which will be beneficial.
Altagas Ltd (ALA-T)
An energy infrastructure company. A good place to keep your money for dividends and a quality utility name. They have settled down after their takeover although there may be other outcomes that are yet to be seen. They pay a 5% dividend.
Utilities very well positioned with energy recovery.Valuable assets that are hard to replicate.Financial guidance very strong.Current share price not reflecting value.~4.5% dividend very strong - room for growth.Not much risk downside.