As many investors have come to know, finding the right stock at the right price is a difficult task. It is even harder to find a great stock that can offer both growth and dividend income. To make things easier, I have compiled a list of three stocks that fit these criteria perfectly, so let’s take a closer look at each to determine which one would fit best in your portfolio.
1. Fortis Inc.
Fortis Inc. (TSX:FTS) is one of the largest electric and gas utilities companies in North America. At today’s levels, its stock trades at 17.3 times fiscal 2015’s estimated earnings per share of $2.06 and 16.4 times fiscal 2016’s estimated earnings per share of $2.17, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 20.4. In addition, the company pays a quarterly dividend of $0.34 per share, or $1.36 per share annually, giving its stock a 3.8% yield at today’s levels.
2. Canadian National Railway Company
Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is the largest rail network operator in Canada. At current levels, its stock trades at 17.6 times fiscal 2015’s estimated earnings per share of $4.14 and 15.6 times fiscal 2016’s estimated earnings per share of $4.65, the latter of which is inexpensive compared with its five-year average price-to-earnings multiple of 16.6. Additionally, the company pays a quarterly dividend of $0.3125 per share, or $1.25 per share annually, which gives its stock a 1.7% yield at today’s levels.
3. TransForce Inc.
TransForce Inc. (TSX:TFI) is one of the largest providers of transportation and logistics services in North America. At today’s levels, its stock trades at 13.4 times fiscal 2015’s estimated earnings per share of $1.92 and 11.5 times fiscal 2016’s estimated earnings per share of $2.24, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 24.6. In addition, the company pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 2.6% yield at current levels.
Which of these top stocks belong in your portfolio?
Fortis, Canadian National Railway, and TransForce represent three of the best long-term investment opportunities in the market today. Foolish investors should strongly consider initiating positions in at least one of them.
