As self-investors know, finding the right stock at the right price can be a tough task, and it is even tougher to find a stock that can provide both growth and dividend income. To make things easy for you, I have found three dividend-paying stocks that are trading at significant discounts compared to their industry average price-to-earnings multiples, so let’s take a closer look at each to determine which would be the best fit for your portfolio.
1. Intact Financial Corporation
Intact Financial Corporation (TSX:IFC) is one of the leading providers of property and casualty insurance in Canada. At today’s levels, its stock trades at 14.4 times fiscal 2015’s estimated earnings per share of $6.33 and 13.4 times fiscal 2016’s estimated earnings per share of $6.79, both of which are inexpensive compared to the industry average price-to-earnings multiple of 16.6. In addition, the company pays a quarterly dividend of $0.53 per share, or $2.12 per share annually, giving its stock a 2.3% yield.
2. The Jean Coutu Group Inc.
The Jean Coutu Group Inc. (TSX:PJC.A) is one of the largest operators of pharmacies in Canada. At current levels, its stock trades at 17.2 times fiscal 2015’s estimated earnings per share of $1.18 and 16.5 times fiscal 2016’s estimated earnings per share of $1.23, both of which are inexpensive compared to the industry average price-to-earnings multiple of 24.3. Also, the company pays a quarterly dividend $0.11 per share, or $0.44 per share annually, which gives its stock a 2.2% yield.
3. Linamar Corporation
Linamar Corporation (TSX:LNR) is one of the world’s largest manufacturers of powertrain systems. At today’s levels, its stock trades at 12.7 times fiscal 2015’s estimated earnings per share of $6.42 and 11.9 times fiscal 2016’s estimated earnings per share of $6.85, both of which are inexpensive compared to the industry average price-to-earnings multiple of 27.1. Additionally, the company pays a quarterly dividend of $0.10 per share, or $0.40 per share annually, giving its stock a 0.5% yield.
Should you go long with one of these stocks today?
Intact Financial, Jean Coutu, and Linamar represent three of the most attractive long-term investment opportunities in the market today. Foolish investors should strongly consider beginning to scale in to positions in one or more of them right now.
