As many investors can attest, it’s not always easy finding the right stock at the right price when we’re ready to buy, especially when searching for one that is both undervalued and has a great dividend. Well, to make things easier for those of you looking to make a purchase today, I’ve scoured the market and selected three stocks that meet these criteria perfectly, so let’s take a closer look at each to determine which would fit best in your portfolio.
1. Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is one of Canada’s largest integrated media and entertainment companies.
At today’s levels, its stock trades at just 9.5 times 2016’s estimated earnings per share of $1.22 and a mere 8.2 times fiscal 2017’s estimated earnings per share of $1.41, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 14.1 and its industry average multiple of 30.7.
In addition, Corus pays a monthly dividend of $0.095 per share, or $1.14 per share annually, which gives its stock a yield of about 9.9%. Investors must also note that the company has raised its annual dividend payment for 12 consecutive years, and its 4.6% hike in February 2015 has it on pace for 2016 to mark the 13th consecutive year with an increase.
2. National Bank of Canada
National Bank of Canada (TSX: NA) is the sixth-largest bank in Canada with approximately $219.3 billion in total assets.
At today’s levels, its stock trades at just 9.3 times 2016’s estimated earnings per share of $4.63 and only nine times fiscal 2017’s estimated earnings per share of $4.79, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 10 and its industry average multiple of 13.3.
In addition, National Bank of Canada pays a quarterly dividend of $0.54 per share, or $2.16 per share annually, which gives its stock a yield of about 5%. Investors must also note that the company has raised its annual dividend payment for five consecutive years, and its recent increases, including its 3.8% hike in December 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.
3. Ritchie Bros. Auctioneers
Ritchie Bros. Auctioneers (TSX: RBA)(NYSE: RBA) is a global leader in asset management and disposition, and it is the world’s largest industrial auctioneer.
At today’s levels, its stock trades at just 22.5 times 2016’s estimated earnings per share of US$1.15 and only 20.2 times fiscal 2017’s estimated earnings per share of US$1.28, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 28.7 and its industry average multiple of 27.7.
In addition, Ritchie Bros. pays a quarterly dividend of US$0.16 per share, or US$0.64 per share annually, which gives its stock a yield of about 2.5%. A 2.5% yield may not impress you at first, but you must also note that the company has raised its annual dividend payment for 12 consecutive years, and its 14.3% hike in August 2015 has it on pace for 2016 to mark the 13th consecutive year with an increase.
