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.
Renewed outlook
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%.
Open concept
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%.
Fortified position
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.
Fool on.
