The S&P/TSX Composite Index fell 93 points below the 16,000 mark on May 29. The drop coincided with a broad sell-off in Asia, Europe, and all three of the top U.S. indexes. Trade anxiety has re-emerged, as NAFTA talks turned sour in May, and plunging oil prices have also weighed on the energy-heavy TSX. The ongoing political crisis in Italy had the largest impact. There is the rising likelihood of another election after the populist protest party Five Star and the far-right Lega failed to form a government. A second election so soon after the March 4th contest…
To keep reading, enter your email address or login below.
The S&P/TSX Composite Index fell 93 points below the 16,000 mark on May 29. The drop coincided with a broad sell-off in Asia, Europe, and all three of the top U.S. indexes. Trade anxiety has re-emerged, as NAFTA talks turned sour in May, and plunging oil prices have also weighed on the energy-heavy TSX.
The ongoing political crisis in Italy had the largest impact. There is the rising likelihood of another election after the populist protest party Five Star and the far-right Lega failed to form a government. A second election so soon after the March 4th contest could actually see populist forces gain more power — in particular, Lega, which is polling around 24% currently. This could set up a showdown that could plunge the European Union into its biggest political crisis since Brexit.
Investors may want to hunker down and look to income-yielding stocks during this stormy period. Let’s look at five of my top dividend options today.
Fortis Inc. (TSX:FTS)(NYSE:FTS)
Fortis is a utility company that delivers service to over 2.5 million customers in the U.S. and Canada. Shares of Fortis are down 9.2% in 2018, as utilities have suffered after an early interest rate hike and the promise of further tightening. In the first quarter, net earnings rose to $323 million from $293 million in the prior year. Fortis offers a quarterly dividend of $0.425 per share, representing a 4% dividend yield. The company has delivered over 40 years of dividend growth.
Telus Corporation (TSX:T)(NYSE:TU)
Telus is a Vancouver-based telecommunications company. Its stock has dropped 3.9% in 2018 so far. Telus posted 76,000 new postpaid wireless, internet, and TV customer additions in the first quarter, and free cash flow surged 104% year over year to $443 million. The company last announced a dividend of $0.505 per share, representing a 4.3% dividend yield.
Genworth MI Canada Inc. (TSX:MIC)
Genworth MI Canada is the largest private residential mortgage insurer in Canada. Its stock has dropped 7.9% in 2018 in the midst of a weak year for Canadian housing. Total premiums written were down 30% from Q4 but were up 22% year over year. New OSFI mortgage rules impact uninsured buyers, so Genworth is a one of the more attractive targets in the industry. The stock boasts a quarterly dividend of $0.47 per share, representing a 4.6% dividend yield.
Stantec Inc. (TSX:STN)(NYSE:STN)
Stantec is an Edmonton-based professional services company. Shares are down 7.6% in 2018 so far. Net revenue rose $5.8 million year over year to $876.6 million in the first quarter. Adjusted net income climbed 4.4% to $47.8 million. The company declared a dividend of $0.1375 per share, representing a 1.5% dividend yield.
Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP)
Brookfield Renewable is a renewable power-generating company with a global portfolio. Shares have dipped 5.5% in 2018 as of close on May 29. Funds from operations (FFO) grew to $193 million in the first quarter compared to $166 million in Q1 2017. Its liquidity position at the end of the quarter totaled $1.7 billion. The stock offers a dividend of $0.49 per share, representing a 5.8% dividend yield.
Since 2013, The Motley Fool Canada's Iain Butler has more than doubled the return of the S&P/TSX index. It's a track record that should make you sit up and pay attention...
Especially when Iain announces a brand-new stock pick, like his #1 energy play right now. Hint: It's not another flash-in-the-pan E&P. It's actually a tech stock with deep ties to the energy industry - and Iain sees as much as 70% upside from today's price.
Now here's the really good news. You can snap up a copy of Iain's brand-new report for FREE. You'll get the name, ticker and the full investment case 100% gratis. In fact, the only catch is that you need to hurry! This report is hot off the presses today, but blink and you could miss it.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Brookfield Renewable Partners is a recommendation of Stock Advisor Canada.