As a value-conscious investor, I am always on the lookout for high-quality companies whose stocks are trading at discounted levels, and after a recent search of several industries, I came across three very attractive options. Let’s take a quick look at each, so you can determine if you should buy one of them today.
1. Dollarama Inc.
Dollarama Inc. (TSX: DOL) is the largest owner and operator of dollar stores in Canada with 1,030 locations across all 10 provinces.
At today’s levels, its stock trades at just 26.5 times fiscal 2017’s estimated earnings per share of $3.38 and only 23.1 times fiscal 2018’s estimated earnings per share of $3.88, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 41.3 and its industry average multiple of 28.1.
In addition, Dollarama pays a quarterly dividend of $0.10 per share, or $0.40 per share annually, which gives its stock a yield of about 0.45%. Investors must also note that its 11.1% dividend hike in March has it on pace for fiscal 2017 to mark the fifth consecutive year in which it has raised its annual dividend payment.
2. Aecon Group Inc.
Aecon Group Inc. (TSX: ARE) is one of Canada’s leading providers of construction and infrastructure development services.
At today’s levels, its stock trades at just 18.4 times fiscal 2016’s estimated earnings per share of $0.94 and only 15.8 times fiscal 2017’s estimated earnings per share of $1.10, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 37.8 and its industry average multiple of 21.8.
In addition, Aecon pays a quarterly dividend of $0.115 per share, or $0.46 per share annually, which gives its stock a yield of about 2.65%. Investors must also note that its 15% dividend hike in March has it on pace for fiscal 2016 to mark the fifth consecutive year in which it has raised its annual dividend payment.
3. Open Text Corporation
Open Text Corporation (TSX:OTC)(NASDAQ: OTEX) is one of the world’s leading providers of enterprise information management, including content management, business process management, customer experience management, and information exchange.
At today’s levels, its stock trades at just 15.2 times 2016’s estimated earnings per share of US$3.65 and only 14.5 times fiscal 2017’s estimated earnings per share of US$3.81, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 27.3 and its industry average multiple of 65.8.
In addition, Open Text pays a quarterly of US$0.20 per share, or US$0.80 per share annually, which gives its stock a yield of about 1.45%. Investors must also note that its 15.9% dividend hike in April 2015 has it on pace for fiscal 2016 to mark the third consecutive year in which it has raised its annual dividend payment.
