3 Dividend Beasts to Pursue Right Now

Stocks like Emera Inc. (TSX:EMA) are great targets right now for investors looking to reinvest profits from other pricey sectors.

| More on:
Glass piggy bank

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

A quick glance at the TSX index right now will leave many investors scrambling for bargains. The TSX was up 9.2% in 2019 as of close on February 12, making it difficult to find stocks that are not pricey. Instead of hunting for discounts, investors should consider the three stocks we will discuss today.

Although the market has performed well to start 2019, there are still economic headwinds on the horizon that promise to bring about more volatility. Investors may want to take profits in early February and reinvest in stocks that pay out high and consistent income.

Hydro One (TSX:H)

Hydro One stock was up 2.8% in 2019 as of close on February 12. Back in January, Hydro One was one of the stocks I’d focused on. It is adjusting to new leadership. Hydro One boasts a wide economic moat and a monopoly in the country’s largest province, but the tug-of-war with provincial officials has been frustrating for investors.

The loss of the Avista acquisition will hopefully serve as a sharp lesson going forward.

The company is expected to release its fourth-quarter and full-year results for 2018 on February 21. Hydro One last paid out a quarterly dividend of $0.23 per share, which represents a 4.3% yield. The company has posted dividend growth in every year since its late 2015 IPO.

Innergex Renewable (TSX:INE)

Innergex Renewable is a Quebec-based renewable power producer. Shares had climbed 13.6% in 2019 as of close on February 12. In early January, I’d recommended Innergex as a top stock for millennials to target considering the flow of investment into renewables.

Innergex is expected to release its fourth-quarter and full-year results for 2018 on February 28. In the third quarter, the company reported revenues of $140.8 million, which were up 30% from the prior year. Production increased 25% year over year in the third quarter, and for the first nine months of 2018, production had climbed 37% from the same period in 2017. Revenues also grew 40% year to date to $408.2 million.

Innergex last paid out a quarterly dividend of $0.17 per share. This represents an attractive 4.8% yield.

Emera (TSX:EMA)

Emera is a Halifax-based utility. Shares were up 6% in 2019 as of close on February 12. The stock had climbed 11.5% year over year.

Emera is expected to release its fourth-quarter and full-year results for 2018 on February 19. For the first nine months of 2018, Emera reported adjusted net income of $504 million, or $2.17 per share, compared to $387 million, or $1.82 per share, in the prior year. The company has committed to a capital-investment plan spanning into 2021 that aims to grow its rate base and support dividend growth into the next decade.

Emera last paid out a quarterly dividend of $0.5875 per share. This represents a 4.9% yield. Emera has achieved dividend growth for 12 consecutive years. It is the only equity we have covered today that can boast over a decade of dividend growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan owns shares of HYDRO ONE LIMITED.

More on Investing

Volatile market, stock volatility
Investing

Safe TSX Stocks to Buy in a Volatile Market

Are you looking for safe TSX stocks to buy in a volatile market? Here are three top picks!

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Should You Buy Canadian Bank Stocks After the Recent Correction?

Dividends and fairly valued Canadian bank stocks look attractive. But the macro picture could be a spoiler!

Read more »

Knowledge concept with quote written on wooden blocks
Investing

The 2 Best Stocks to Own in a Recession

Recessions cut demand, but essential services like Metro (TSX:MRU) could fare better.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Energy Stocks (With Dividends) to Buy Amid the Market Correction

These dividend-yielding energy stocks look attractive to buy for the long term after their recent dip.

Read more »

Dividend Stocks

2 Undervalued TSX Dividend Stocks to Buy in July

These unloved TSX dividend stocks could deliver attractive returns in the back half of 2022.

Read more »

sad concerned deep in thought
Dividend Stocks

$20 Billion Telco Merger: More Concessions and Conditions Ahead?

The mediation process in the proposed telco merger could lead to more concessions and conditions before the competition watchdog grants…

Read more »

Question marks in a pile
Cryptocurrency

Is the Crypto Market Finally Recovering?

The decision to hold, buy, or sell crypto based on the current rally might be too immature. It would be…

Read more »

Target. Stand out from the crowd
Investing

Investing for Inflation: 2 Oversold TSX Stocks to Buy Now

Quebecor (TSX:QBR.B) is a dirt-cheap, mid-cap TSX stock that could help investors move through a high-inflation or recessionary world.

Read more »