Finding the right stock at the right price can be a very difficult task. This we can all agree on. In order to make things easier for you, I have compiled a list of three dividend-paying stocks that are trading at inexpensive forward valuations compared with their five-year averages, so let’s take a closer look at each to determine which one would fit best in your portfolio.
1. SNC-Lavalin Group Inc.
SNC-Lavalin Group Inc. (TSX:SNC) is one of the world’s largest engineering and construction companies. At today’s levels, its stock trades at 20.6 times fiscal 2015’s estimated earnings per share of $2.11 and 14.8 times fiscal 2016’s estimated earnings per share of $2.94, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 43.7. In addition, the company pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, giving its stock a 2.3% yield.
2. Peyto Exploration & Development Corp.
Peyto Exploration & Development Corp. (TSX:PEY) is one of the largest explorers and producers of unconventional natural gas in Alberta, Canada. At current levels, its stock trades at 28.1 times fiscal 2015’s estimated earnings per share of $1.11 and 21.7 times fiscal 2016’s estimated earnings per share of $1.44, the latter of which is inexpensive compared with its five-year average price-to-earnings multiple of 26.5. Additionally, the company pays a monthly dividend of $0.11 per share, or $1.32 per share annually, which gives its stock a 4.2% yield.
3. Canam Group Inc.
Canam Group Inc. (TSX:CAM) is the largest fabricator of steel components in North America. At today’s levels, its stock trades at 12.9 times fiscal 2015’s estimated earnings per share of $1.07 and 10.5 times fiscal 2016’s estimated earnings per share of $1.32, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 26. In addition, the company pays a quarterly dividend of $0.04 per share, or $0.16 per share annually, giving its stock a 1.15% yield.
Does one of these stocks belong in your portfolio?
SNC-Lavalin Group, Peyto Exploration, and Canam Group are three very inexpensive investment options in the market today. Foolish investors should strongly consider establishing positions in one of them.
