These 3 Stocks Are Screaming Buys

Looking to add a new position? If so, Progressive Waste Solutions Ltd. (TSX:BIN)(NYSE:BIN), Macdonald Dettwiler & Associates Ltd. (TSX:MDA), and Royal Bank of Canada (TSX:RY)(NYSE:RY) are three of your best options.

| More on:
The Motley Fool

As most investors have realized, finding the right stock at the right price is not an easy task. It is even harder to find a stock that can provide both growth and dividend income. Well, to make things easier for you, I have scoured the market and 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. Progressive Waste Solutions Ltd.

Progressive Waste Solutions Ltd. (TSX:BIN)(NYSE:BIN) is one of North America’s largest providers of waste management solutions. At today’s levels, its stock trades at 25.5 times fiscal 2015’s estimated earnings per share of $1.28 and 21.9 times fiscal 2016’s estimated earnings per share of $1.49, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 29.1. In addition, the company pays a quarterly dividend of $0.16 per share, or $0.64 per share annually, giving its stock a 2% yield.

2. Macdonald Dettwiler & Associates Ltd.

Macdonald Dettwiler & Associates Ltd. (TSX:MDA) is a global communications and information company, providing operational solutions to commercial and government organizations worldwide. At current levels, its stock trades at 14.2 times fiscal 2015’s estimated earnings per share of $6.40 and 12.4 times fiscal 2016’s estimated earnings per share of $7.29, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 22.8. Additionally, the company pays a quarterly dividend of $0.37 per share, or $1.48 per share annually, which gives its stock a 1.6% yield.

3. Royal Bank of Canada

Royal Bank of Canada (TSX:RY)(NYSE:RY) is the largest bank in Canada with over $1.03 trillion in total assets. At today’s levels, its stock trades at 11.6 times fiscal 2015’s estimated earnings per share of $6.63 and 11 times fiscal 2016’s estimated earnings per share of $6.96, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 13.6. Also, the company pays a quarterly dividend of $0.77 per share, or $3.08 per share annually, giving its stock a 4% yield.

Could your portfolio use one of these stocks?

Progressive Waste Solutions, Macdonald Dettwiler & Associates, and Royal Bank of Canada are three of the top value plays in the market today. Foolish investors seeking growth and income should take a closer look and strongly consider buying one or all of them.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »