Hello again, Fools. I’m back to call your attention to three stocks trading near their 52-week highs. Why? Because after a given stock rallies over a short period of time, one of two things tends to happen: the stock keeps climbing as traders look to ride the momentum or the stock quickly pulls back as value-oriented investors look to take profits off the table.
Buy-and-hold is still the most reliable way to build wealth. But knowing how to play short term swings can also help maximize your returns.
This week, we’ll take a look at three reliable dividend stocks that have been on fire.
Let’s get to it.
Leading off our list is renewable energy giant Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), which is up 27% in 2019 and trading at its 52-week highs of $45.11 per share.
Brookfield continues to offer investors a rare combination of growth, stability, and high dividend. In the most recent quarter, revenue improved 4% while funds from operations (FFO) increased 18% to $227 million. Moreover, overall power generation exceeded its long-term average by 7%.
“We had a strong start to the year as we executed on key initiatives across our business, including delivering operational performance, investing in growth, and bolstering our liquidity position to over $2.3 billion,” said CEO Sachin Shah.
Brookfield is up 13% over the past year and currently offers a juicy yield of 6.4%.
Next up we have content software company Open Text (TSX:OTEX)(Nasdaq:OTEX), whose shares are up 24% in 2019 and trading near their 52-week highs of $41.57.
Open Text’s price appreciation continues to be fueled by strong operating momentum. In the most recent quarter, revenue improved 5%, recurring revenue increased 5%, and operating cash flow clocked in at $286 million.
Thanks to that strength, management even boosted the quarterly dividend 15%.
“Our commitment to Total Growth leverages the OpenText Business System as a framework for both organic growth and future M&A opportunities,” said CEO Mark Barrenechea. “With this framework, we are well positioned to scale OpenText to new levels in the coming years.”
Open Text is up 17% over the past year and offers a yield of 1.5%.
Capping off our list is utility giant Fortis (TSX:FTS)(NYSE:FTS), which is up 15% in 2019 and trading near its 52-week high of $52.20 per share.
Fortis’ rock-solid balance sheet, regulated environment, and heavy capital expenditures offer Fools a solid mix of safety and growth. In Q1, adjusted earnings improved 6% while the company invested $700 million in capex during the quarter.
Management plans to invest $17.3 billion in capex over the next five years. Moreover, Fortis continues to target average annual dividend growth of roughly 6% through 2023.
“Our businesses, now 99% regulated, delivered strong performance in the first quarter of 2019,” said President and CEO Barry Perry.
Fortis shares are up 28% over the past year and currently boast a healthy dividend yield of 3.4%.
The bottom line
There you have it, Fools: three red-hot stocks worth checking out.
As always, they aren’t formal recommendations. Instead, look at them as a starting point for further research. Momentum stocks are especially fickle, so plenty of your own due diligence is required.
Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!
That’s why The Motley Fool Canada’s analyst team has put together this FREE investor brief, including the names and tickers of 3 TSX stocks they believe are set to LOSE you money.
Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).
Still, our analysts rate this company a firm SELL.
Don’t miss out. Click here to see all three names right now.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Open Text is a recommendation of Stock Advisor Canada.