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First Brexit… then Trump… Now, it’s time for Pro

Is your portfolio really prepared for what’s coming next?

To help investors like you navigate this historically uncertain — yet high-flying — market and prepare for an inevitable downturn, we’re re-opening our Motley Fool Pro Canada service to a select few new members for a short time.

To discover how Pro Canada could help you to increase your upside potential… reduce your downside risk… and earn paycheque-like income in the process, simply click here — before the small number of spots we have left are all gone!

3 Undervalued Dividend Dynamos to Buy Now

As a fundamental investor, I’m always on the lookout for high-quality companies whose stocks are trading at discounted levels and have great dividends, and after a search of the market, three caught my eye. Let’s take a quick look at each, so you can determine if you should add one of them to your portfolio today.

1. Telus Corporation

Telus Corporation (TSX:T)(NYSE:TU) is Canada’s third-largest telecommunications company with over 12.4 million total customer connections.

At today’s levels, its stock trades at just 15.3 times fiscal 2016’s estimated earnings per share of $2.66 and only 14.7 times fiscal 2017’s estimated earnings per share of $2.78, both of which are inexpensive compared with its trailing 12-month price-to-earnings multiple of 18.1 and its five-year average multiple of 17.5.

Additionally, the company pays a quarterly dividend of $0.46 per share, or $1.84 per share annually, which gives its stock a yield of about 4.5%. Investors must also note that its three dividend hikes since the start of 2015, including its 4.5% hike last month, have it on pace for 2016 to mark the 13th consecutive year in which it has raised its annual dividend payment, and it has a program in place to grow it by another 7-10% annually through 2019.

2. Canadian Utilities Limited

Canadian Utilities Limited (TSX:CU) is a diversified global corporation with operations in pipelines and liquids, electricity, and energy sales.

At today’s levels, its stock trades at just 18.3 times fiscal 2016’s estimated earnings per share of $2.05 and only 17.1 times fiscal 2017’s estimated earnings per share of $2.19, both of which are inexpensive compared with its trailing 12-month price-to-earnings multiple of 32.3 and its five-year average multiple of 18.9.

Additionally, the company pays a quarterly dividend of $0.325 per share, or $1.30 per share annually, which gives its stock a yield of about 3.5%. Investors must also note that its 10.2% dividend hike in January has it on pace for 2016 to mark the 44th consecutive year in which it has raised its annual dividend payment.

3. Laurentian Bank of Canada

Laurentian Bank of Canada (TSX:LB) is one of the largest banks in eastern Canada with over $41 billion in total assets.

At today’s levels, its stock trades at just 9.2 times fiscal 2016’s estimated earnings per share of $5.72 and only 8.9 times fiscal 2017’s estimated earnings per share of $5.90, both of which are inexpensive compared with its trailing 12-month price-to-earnings multiple of 15 and its five-year average multiple of 10.9.

Additionally, the company pays a quarterly dividend of $0.60 per share, or $2.40 per share annually, which gives its stock a yield of about 4.6%. Investors must also note that its three dividend hikes since the start of 2015, including its 3.5% hike earlier this month, have it on pace for 2016 to mark the ninth consecutive year in which it has raised its annual dividend payment.

Stock buy alert hits astounding 96% success rate!

The hand-picked investing team inside Stock Advisor Canada, recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply  click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.

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

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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