One of the most difficult tasks we face as self-investors is finding the right stock at the right price when we are ready to buy. Well, if you are ready to add a new stock to your portfolio today, I have found three dividend-paying stocks that are trading at inexpensive valuations compared with both their five-year averages and their industry averages, so let’s take a closer look at each to determine which would fit best in your portfolio.
1. Rogers Sugars Inc.
Rogers Sugars Inc. (TSX: RSI) is one of Canada’s largest manufacturers and distributors of sugar products. At today’s levels, its stock trades at 13.5 times fiscal 2015’s and 2016’s estimated earning per share of $0.34, which is inexpensive compared with its five-year average price-to-earnings multiple of 14.5 and the industry average multiple of 25.8. Also, the company pays a quarterly dividend of $0.09 per share, or $0.36 per share annually, giving its stock a 7.8% yield.
2. Aimia Inc.
Aimia Inc. (TSX: AIM) is one of the world’s largest providers of marketing and loyalty analytics services. At current levels, its stock trades at 17.9 times fiscal 2015’s estimated earnings per share of $0.80 and 15.5 times fiscal 2016’s estimated earnings per share of $0.92, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 65.5 and the industry average multiple of 25.7. In addition, the company pays a quarterly dividend of $0.19 per share, or $0.76 per share annually, which gives its stock a 5.3% yield.
3. IGM Financial Inc.
IGM Financial Inc. (TSX: IGM) is one of Canada’s largest providers of personal financial services, and it is one of the leading managers and distributors of mutual funds and other managed asset products. At today’s levels, its stock trades at 12 times fiscal 2015’s estimated earnings per share of $3.36 and 11.3 times fiscal 2016’s estimated earnings per share or $3.57, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 15.9 and the industry average multiple of 62.2. The company also pays a quarterly dividend of $0.5625 per share, or $2.25 per share annually, giving its stock a 5.6% yield.
Is now the right time to add a new stock to your portfolio?
Rogers Sugars, Aimia, and IGM Financial represent three of the best long-term investment opportunities in their respective industries. Foolish investors should strongly consider beginning to scale in to positions in one or more of them today.
