Intact, Manitoba Tel Amongst the Non-Resource Companies Trading Near 52-Week Lows

Some tempting yields amongst these beaten down stocks.

| More on:
The Motley Fool

Though a number of the headlines over the past few months might have you thinking otherwise, outside of the Canadian market’s resource space, a good number of stocks on the TSX are doing pretty well of late.

So well in fact that just 4 names showed up when I screened for non-resource stocks trading within 5% of their 52-week low in the S&P/TSX Composite.  Slim pickings for those of who tend to favour out-of-favour names as potential investment opportunities.

Summarized below are the 4 names that popped up and their year-to-date performance:

Company Name

YTD Performance

Chorus Aviation   (TSX:CHR.B)

-37.9%

Wajax Corp. (TSX:WJX)

-20.5%

Intact Financial (TSX:IFC)

-9.4%

Manitoba Tel (TSX:MBT)

-1.6%

Source: Capital IQ

The one thing that these names all have in common is that they currently offer attractive dividend yields.

Leading the yield charge is Chorus, even though the company just halved its quarterly payout.  At a quarterly rate of $0.075 or $0.30 per year, Chorus currently yields a whopping 12.6%.  The stock has been in a free fall since the dividend cut occurred on May 10th.  However, if investors are able to gain some level of comfort that the current payout is sustainable, this stock won’t remain at the current level for long.  Given today’s 11% slide, investors appear to be having some trouble coming to this conclusion.

Wajax shares have been soft all year and the most recent round of quarterly results didn’t help matters.  On the back of these soft results, Wajax cut its monthly dividend by 26% to $0.20 per month.  The stock sported a yield north of 9% going into last week’s release, indicating the market suspected this cut would occur.  Now, with a seemingly more sustainable 7.4% yield, Wajax might be worth a look for income oriented investors.

What about the other two?

Intact and Manitoba Tel have taken a less dramatic route to their currently depressed stock prices.  Both carry attractive yields of 3.0% and 5.3% respectively, however, with payout ratios of 40.5% for Intact and 64.3% for Manitoba Tel, neither dividend is at risk.

Of the two, Intact would be this Fool’s bet to come out as the long-term winner.  The company experienced an earnings miss in the most recent quarter and has suffered from rumblings of uncertainty in the Ontario automobile insurance industry.  Both issues seem transient and this dominant market player is set to continue to rack up industry leading profits for years to come.

If you’re an investor who would love to own the world’s greatest businesses, you need to click here to receive our special FREE report “3 U.S. Stocks Every Canadian Should Own”.  Your portfolio will thank you!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own shares of any of the companies mentioned at this time.  The Motley Fool has no positions in the stocks mentioned above.

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.

More on Investing

dividend growth for passive income
Dividend Stocks

How Canadians Can Transform $10,000 Into Steady Passive Income for 2025

Investing in TSX dividend stocks such as Exchange Income should help Canadians derive outsized gains over the next two years.

Read more »

Income and growth financial chart
Tech Stocks

Why Celestica Stock Jumped 10% Last Week

Celestica stock surged 10% after earnings, so let's get into why.

Read more »

Nickel ore is mined from the ground.
Metals and Mining Stocks

The Smartest Small-Cap Gem to Buy With $1,500 Right Now

Here's why The Metals Company (NASDAQ:TMC) is a top option for long-term investors seeking a speculative growth name right now.

Read more »

grow money, wealth build
Dividend Stocks

How I’d Invest $7,000 in My TFSA for Capital Preservation and Growth

To grow your TFSA, consider investing in a mix of GICs, market-wide ETFs, and quality stocks via a balanced approach.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Best Dividend Buy: 2 Canadian Stocks for May 2025

Two Canadian stocks are the best dividend buys in May 2025 for their low-risk profiles and payout stability.

Read more »

Dividend Stocks

Monthly Income Alert: 2 Canadian Dividend Stocks Yielding Over 6% Today

Canadian investors should consider owning monthly dividend stocks such as Whitecap and CT REIT to generate passive income.

Read more »

Silver coins fall into a piggy bank.
Energy Stocks

This Overlooked Energy Stock Down 43% is a Dividend Investor’s Dream

Peyto is a natural gas stock with a rapidly growing dividend, strong cash flows, and a strong position in the…

Read more »

sale discount best price
Dividend Stocks

Is This Correction Your Chance? The Top 3 Canadian Dividend Stocks on Sale Now!

These dividend stocks all had recent analyst upgrades and remain stellar options during a market dip.

Read more »