As intelligent investors, we are always searching for ways to increase our portfolio’s returns, while also staying diversified. With this in mind, let’s take a look at three inexpensive dividend-paying stocks from the engineering and construction industry that you could add to your portfolio today.
1. SNC-Lavalin Group Inc.
SNC-Lavalin Group Inc. (TSX:SNC) is one of the largest engineering and construction companies in the world. At today’s levels, its stock trades at 20.4 times fiscal 2015’s estimated earnings per share of $2.12 and 14.7 times fiscal 2016’s estimated earnings per share of $2.94, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 43.7 and the industry average multiple of 31.1. Also, the company pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, giving its stock a 2.3% yield.
2. Stuart Olson Inc.
Stuart Olson Inc. (TSX:SOX) is one of Canada’s largest integrated construction and industrial solutions companies. At current levels, its stock trades at 14.7 times fiscal 2015’s estimated earnings per share of $0.44 and 9.5 times fiscal 2016’s estimated earnings per share of $0.68, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 20.0 and the industry average multiple of 31.1. Additionally, the company pays a quarterly dividend of $0.12 per share, or $0.48 per share annually, which gives its stock a 7.4% yield.
3. Aecon Group Inc.
Aecon Group Inc. (TSX: ARE) is one of Canada’s largest construction and infrastructure development companies. At today’s levels, its stock trades at 12 times fiscal 2015’s estimated earnings per share of $0.98 and 12.1 times fiscal 2016’s estimated earnings per share of $0.97, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 30.4 and the industry average multiple of 31.1. In addition, the company pays a quarterly dividend of $0.10 per share, or $0.40 per share annually, giving its stock a 3.4% yield.
Should you buy one of these construction stocks today?
SNC-Lavalin Group, Stuart Olson, and Aecon Group represent three of the best long-term investment opportunities in the engineering and construction industry today. Foolish investors should strongly consider beginning to scale in to positions in one of them.
