3 Diversified Stock Picks for Growth and Income

Looking for a stock that can provide growth and income? If so, Veresen Inc. (TSX:VSN), Gluskin Sheff + Associates Inc. (TSX:GS), and Royal Gold Inc. (TSX:RGL)(NASDAQ:RGLD) are three great options.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

As many investors know, finding the right stock at the right price is not an easy task. It is even more difficult to find a stock that can provide both growth and dividend income. To make things easier on you, I have 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 to determine which one would fit best in your portfolio.

1. Veresen Inc.

Veresen Inc. (TSX:VSN) is one of North America’s largest diversified energy infrastructure companies. At today’s levels, its stock trades at 42.5 times fiscal 2015’s estimated earnings per share of $0.37 and 35.8 times fiscal 2016’s estimated earnings per share of $0.44, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 50. In addition, the company pays a monthly dividend of $0.0833 per share, or $1.00 per share annually, giving its stock a 6.35% yield.

2. Gluskin Sheff + Associates Inc.

Gluskin Sheff + Associates Inc. (TSX:GS) is one of Canada’s pre-eminent wealth management firms, serving high net-worth individuals and select institutional investors. At current levels, its stock trades at 15.3 times fiscal 2015’s estimated earnings per share of $1.68 and 12.4 times fiscal 2016’s estimated earnings per share of $2.07, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 16.1. Additionally, the company pays a quarterly dividend of $0.225 per share, or $0.90 per share annually, giving its stock a 3.5% yield.

3. Royal Gold Inc.

Royal Gold Inc. (TSX:RGL)(NASDAQ:RGLD) is one of the world’s largest precious metals royalty and stream companies, with ownership interests in 37 mines and 23 development-stage projects around the world. At today’s levels, its stock trades at 53.3 times fiscal 2015’s estimated earnings per share of US$1.48 and 45.3 times fiscal 2016’s estimated earnings per share of US$1.74, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 63.7. In addition, the company pays a quarterly dividend of US$0.22 per share, or US$0.88 per share annually, giving its stock a 1.4% yield.

Should you buy one of these stocks?

Veresen, Gluskin Sheff + Associates, and Royal Gold represent three of the best long-term investment opportunities in the market today. Foolish investors should take a closer look and consider buying one or more of them right now.

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

Happy couple being attended by office worker at office
Dividend Stocks

BCE Stock: A Great Pick to Boost Your RRSP Retirement Fund

BCE (TSX:BCE)(NYSE:BCE) stock is a dirt-cheap telecom stock with a huge dividend yield to keep RRSP investors happy.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Want Easy Passive Income? These 2 Canadian Dividend Aristocrats Deliver

Passive income stars like Slate Grocery REIT (TSX:SGR.U) should be on your watch list.

Read more »

stock research, analyze data
Dividend Stocks

RRSP Investors: 1 Cheap TSX Dividend Stock to Buy Now and Own for 35 Years

RRSP investors can still find top TSX dividend stocks to buy at discounted prices.

Read more »

Cogs turning against each other
Dividend Stocks

2 of the Safest Stocks (With Dividends) to Buy in Canada Now

Here are two of the safest stocks investors in Canada can buy now.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Top Canadian Value Stocks Worth Buying Right Now

Here's why Alimentation Couche-Tard (TSX:ATD) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) are two top value stocks to consider right now.

Read more »

Happy shoppers look at a cellphone.
Dividend Stocks

2 Bargain Stocks You Can Buy Today and Hold Forever

Here's why Fortis (TSX:FTS)(NYSE:FTS) and Manulife (TSX:MFC)(NYSE:MFC) are two bargain stocks I think are worth considering right now.

Read more »

Retirement plan
Dividend Stocks

Passive Income: How Canadian Couples Can Earn $747 Tax-Free per Month for Life

Canadian couples can take advantage of their TFSA contribution space to create a significant stream of tax-free passive income.

Read more »

Golden crown on a red velvet background
Dividend Stocks

3 Canadian Dividend Aristocrats to Buy for Passive Income Forever

Passive-income stocks like BCE (TSX:BCE)(NYSE:BCE) should be on your radar.

Read more »