3 Income Stocks Poised for Growth

The strategies of these three companies offer potential ROI for investors

| More on:
The Motley Fool

Have you considered adding consumer goods, general contracting, and quick-serve restaurants to your portfolio? Here are three diverse companies with strategic plans to foster growth and investor returns.

1. High Liner Foods

High Liner Foods (TSX: HLF) is the top North American processor and marketer of value-added frozen seafood. Its retail branded products include High Liner, Fisher Boy, Mirabel and Sea Cuisine. Additionally, the company sells branded products under the High Liner, Icelandic Seafood, FPI, Viking, Mirabel, Samband of Iceland and American Pride Seafoods labels.

High Liner acquired American Pride Seafoods in October 2013. This acquisition has strengthened High Liner’s leadership standing in the food service segment of the U.S. value-added frozen seafood industry. Furthermore, the acquisition added a major United States-based scallop processing operation to its portfolio.

The company’s board approved a quarterly dividend of $0.21 per common share in May. This represents an 11% increase from the $0.19 per share quarterly dividend paid on March 17, 2014. This is the fourth dividend increase over the last six quarters.

2. SNC-Lavalin Group

SNC-Lavalin Group (TSX: SNC) is one of the top engineering and construction groups globally. The company provides engineering, procurement, and construction, as well as engineering, procurement, and construction management (EPCM) services to clients in an array of industry sectors.

SNC-Lavalin started the implementation of its Global Operations model last year. The purpose of this is to better integrate its business development and project delivery efforts globally. Essential to this new model was the opening of the company’s regional office for the Middle East and Africa in Abu Dhabi in early 2014.

SNC-Lavalin announced that it signed a contract with Stornoway Diamond (TSX: SWY) this week. The contract is to provide project management and detailed EPCM services for the Renard Diamond Project in the James Bay region of Quebec. Construction is scheduled to end by December 2016.

In May, SNC-Lavalin declared a quarterly cash dividend of $0.24 per share.

3. Tim Hortons

As of March 30, 2014, Tim Hortons (TSX: THI)(NYSE: THI) had 4,524 systemwide restaurants (Canada: 3,610, U.S: 870, Gulf Cooperation Council: 44).

For Q1 2014, the company’s systemwide sales grew 5.1% on a constant currency basis. New restaurant development in Canada and the U.S., and same-store sales growth of 1.6% in Canada and 1.9% in the U.S. drove this growth. In Q1, Tim Hortons opened 23 restaurants in Canada and 11 in the U.S.

The company has its five-year strategic plan in place for 2014-2018. A component of its strategic plan is continued restaurant development. Its goal is to develop approximately 500 net new locations by 2018. Furthermore, Tim Hortons is looking to extend its brand reach through new restaurant formats and sizes.

In May, Tim Hortons declared a quarterly dividend of $0.32 per common share.

Exposure across three different industries plus dividends is available from these three companies. Research each one’s strategic plans as you consider them as possible additions to your collection of stocks.

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 Michael Ugulini owns shares of HIGH LINER.

More on Investing

Nuclear power station cooling tower
Energy Stocks

Why Shares of Cameco Are Powering Higher

Cameco (TSX:CCO) shares have surged more than 400% in the last five years alone, with more growth on the way.

Read more »

A bull outlined against a field
Stocks for Beginners

Bull Market Buys: 2 TSX Stocks to Own for the Long Run

Are you looking for stocks that could see a bull run for decades ahead? Here are two top TSX stocks…

Read more »

financial freedom sign
Dividend Stocks

Million-Dollar TFSA: 1 Way to Achieve to 7-Figure Wealth

Achieving seven-figure TFSA wealth is doable with two large-cap, high-yield dividend stocks.

Read more »

analyze data
Dividend Stocks

How Much Will Manulife Financial Pay in Dividends This Year?

Manulife stock's dividend should be safe and the stock appears to be fairly valued.

Read more »

food restaurants
Dividend Stocks

Better Stock to Buy Now: Tim Hortons or Starbucks?

Starbucks and Restaurant Brands International are two blue-chip dividend stocks that trade at a discount to consensus price targets.

Read more »

Diggers and trucks in a coal mine
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Cameco (TSX:CCO) stock could be a great long-term investment for Canadian growth seekers.

Read more »

Pot stocks are a riskier investment

Could Investing $10,000 in Aurora Cannabis Stock Make You a Millionaire?

Let's dive into whether Aurora Cannabis (TSX:ACB) could be a potential millionaire-maker stock, or a dud, over the long term.

Read more »

stock analysis
Energy Stocks

Is Enbridge Stock a Good Buy in May 2024?

Boasting high-yielding dividends and a stable underlying business, Enbridge (TSX:ENB) might be a great buy for your self-directed investment portfolio…

Read more »