The S&P/TSX Composite Index rose 31 points on April 4. The index has shot up 13.9% in 2019 so far. Investors looking for discounts have been forced to dig deep, but there are still solid options out there.
Today we are going to look at three dividend stocks priced under $15. These stocks are solid additions to a TFSA or an RRSP with the mix of income and growth each provides.
Andrew Peller (TSX: ADW.A)
Andrew Peller is an Ontario-based wine producing company. Shares have dropped 4.9% in 2019 as of close on April 4. Back in March I’d discussed whether Andrew Peller and the wine industry at large will be as resilient in a downturn as it was in 2008-2009.
Andrew Peller is trading at the low end of its 52-week range. In the third quarter of fiscal 2019, the company saw its sales climb 6.3% year-to-date, but revenue was flat compared to Q3 fiscal 2018. The annual dividend for Class A shares was increased to $0.2050 per share, which represents a 1.5% yield.
Growth in the broader wine industry is expected to slow in the next decade, but the share of the market for domestic brands has improved in Canada. Andrew Peller has had a difficult run over the past year, but I like its mix of growth potential and income from here on out.
Exco Technologies (TSX: XTC)
Exco Technologies is an Ontario-based company that operates in two segments: the casting and extrusion segment and the automotive solutions segment. Shares of Exco have climbed 8.9% in 2019 so far, and the stock is up 7.6% year over year.
In the first quarter of 2019, Exco saw sales climb to $142.1 million compared to $134.9 million in the prior year. Adjusted EBITDA rose to $18.6 million over $17.3 million in Q1 2018. On January 30, the company announced a 6% dividend increase to $0.09 per share, which represents a 3.5% yield. Exco has achieved dividend growth for 13 consecutive years.
Plaza Retail (TSX: PLZ.UN)
Plaza Retail REIT aims to deliver a growing yield to unitholders from a diversified portfolio of retail properties. Shares of Plaza Retail have climbed 7.2% in 2019 as of close on April 4, and the stock is up 2.4% year over year. REITs have grown increasingly attractive as central banks pump the brakes on interest rates increases.
Plaza Retail released its year-end results on February 26. In 2018, the REIT reported an 8.9% increase in funds from operations payout ratio, while profit and total comprehensive income plunged 47.9% to $12.2 million. This was primarily due to convertible debenture issuance costs for the Series E convertible debentures. The company also suffered due to a slip in net operating income.
Plaza Retail held its monthly distribution at $0.02333 per unit in March, which represents a tasty 6.7% yield. The company has achieved dividend-growth for 16 consecutive years. Priced under $5 investors are getting a top-end yield and a stock with an impressive history of dividend growth.
