MENU

3 White-Hot (Non-Marijuana) Stocks Soaring to New Highs

Marijuana stocks are on fire — again.

Driven by the news that beverage gorilla Coca-Cola is interested in teaming up with Aurora Cannabis to develop a CBD-infused drink, all major weed plays jumped last week, with the likes of Cronos Group and Hexo even busting through to new 52-week highs.

But speculative pot stocks aren’t the only ones doing well. For more conservative investors, here are three dividend-paying stocks that also hit new highs last week.

While they don’t have the “quick-double” appeal of weed stocks, their lower-risk nature gives them a better chance at sustained momentum.

Remember, Fools: buying into well-managed dividend stocks is the most reliable way to wealth.

Dividend dominion

Our first stock is none other than Toronto-Dominion Bank (TSX:TD)(NYSE:TD), whose shares hit a high of $80.05 on Friday. Over the past year, the banking giant is up 15% versus just 5% for the S&P/TSX Composite Index.

TD is benefiting from strong retail operations both in Canada and the U.S. In Q2, TD posted adjusted EPS of $1.66 (or $3.1 billion), up nicely from $1.51 (or $2.9 billion) in the year-ago period.

Growth down south was especially strong, as U.S. retail revenue increased from $900 million in Q2 2017 to $1.1 billion. Strong loan and deposit volume, higher margins, and U.S. tax reform help all helped boost business.

With the stock boasting a still-attractive yield of 3.4%, there should be plenty of room for income investors to jump in.

Energetic performance

Gibson Energy Inc. (TSX:GEI) is our next dividend momentum stock, hitting a new 52-week high of $20.75 on Friday. Over the past six months, the midstream energy company has risen a solid 22% versus just 0.6% for the S&P/TSX High Income Energy Index.

Last year, Gibson embarked on a major restructuring process, and its initiatives are clearly taking hold. In Q2, the company generated distributable cash flow of $78 million, up 80% from the year-ago period.

Moreover, Gibson closed the sale of several U.S. energy services businesses for gross proceeds of $126 million — with continued progress on the sale of its remaining non-core assets.

On the dividend front, the company also managed to decrease its payout ratio range to 70%-80%. So, with Gibson shares sporting a fat yield of 6.9%, the risk/reward trade-off certainly remains enticing.

Montreal mover

With its stock hitting a new 52-week high of $108.92 on Friday, Bank of Montreal (TSX:BMO)(NYSE:BMO) rounds out our list of hot dividend plays. Over the past year, BMO has gained 17%, while the S&P/TSX Capped Financials Index is up 7%.

Like its banking gorilla brethren TD, BMO is profiting from strength on both sides of the border. In Q2, adjusted EPS came in at $2.36, well above the consensus estimate of $2.26 and $2.03 in the year-ago period.

In the U.S., BMO’s adjusted profit spiked 34% to $376 million, while its core Canadian banking segment posted earnings growth of 5%.

Given the strong interest rate and economic tailwinds still working in BMO’s favor, income investors might want to keep riding the wave.

Even after the recent run-up, BMO still offers a rather healthy yield of 3.6%.

Fool on.

Motley Fool Canada Issues Rare "Double Down" Buy Alert

Iain Butler has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his almost 20 years as a professional investor.

This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again.

Simply click here to get started and access our secure sign-up page.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 

 

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.