The S&P/TSX Index has declined 1.66% in 2017 thus far and 3.25% over a three-month period since May 15. Positive earnings beats for top companies had begun to move the index upward before geopolitical tensions spooked investors during the second week of August.
If the market continues to suffer due to external political pressures and the promise of rising rates coming in the fall, investors should be on the lookout for income-generating stocks to add to their portfolios. We are going to take a look at four stocks investors can own that produce attractive dividends.
Laurentian Bank of Canada
Laurentian Bank of Canada (TSX: LB) is a Montreal-based financial institution that serves retail clients in Quebec. The stock has fallen 7.5% in 2017 and was hit hard last week, declining 2% with a late-week swoon. The bank released its second-quarter earnings in late May and reported a decrease in net income of 2%. It offers a dividend of $0.62 per share, representing a 4.64% dividend yield at offering. Regional banks with reliance on the retail side carry more risk than the top Canadian banks.
Genworth MI Canada Inc.
The stock of Genworth MI Canada Inc. (TSX:MIC) has experienced 7% growth in 2017. The mortgage insurance company has managed to weather the storm generated by concerns over Canada housing. The company reported second-quarter results on August 1 and posted net income of $150 million, which was $43 million more than the prior quarter. On May 30, Genworth paid a quarterly dividend of $0.44 and announced the same on August 30. The insurer was not exempt from the panic selling that occurred and declined 2% in the second week of August. With its 5% dividend yield, investors should feel comfortable adding the stock to their portfolios right now.
Dorel Industries Inc.
Dorel Industries Inc. (TSX: DII.B) is a Canadian designer and manufacturer of juvenile products, bicycles, and other products. The company reported a strong first quarter in May, but results in August for the second quarter were disappointing. Revenue was $611.3 million — a decline of 4.1% from Q2 2016. The company reported tremendous gains in its e-commerce sales, representing 50% of the revenue segment. The stock has fallen almost 20% in 2017 but boasts a 5% dividend of $0.38 per share. The dividend is the big selling point here as the company finds itself in a transition period and moves to draw growth in e-commerce.
Chorus Aviation Inc.
Chorus Aviation Inc. (TSX: CHR) is a Canadian holding company which controls Jazz Aviation LP and Voyageur Airways. The stock has risen 10% in 2017 and 134% over a five-year period. On August 10, the company announced its second-quarter earnings, which included a net income of $26.7 million — up 22.3% from Q2 2016. It also reported positive operating income and cash flows from operations. The stock offers a dividend of $0.04 — a 6% dividend yield at the price of $8.01 as of close on August 11. Investors can feel good about the long-term outlook and a tasty dividend.
