Right now is a great time for bargain hunters, especially if those bargain hunters are looking for dividend stocks. It doesn’t get much better than finding a high dividend yield on a stock that’s currently trading far lower than its fair value.
Now would therefore be the perfect time to buy up those stocks, as when the market rebounds, those high yields might not look so high any more.
If you’re looking for some quick options, I would highly recommend researching TFI International Inc. (TSX:TFII), Bank of Montreal (TSX:BMO)(NYSE:BMO), and Fiera Capital Corp. (TSX:FSZ) as some great starting points.
TFI is a rare opportunity for investors right now, as the company’s earnings are basically recession proof. TFI is a transport and logistics company operating across Canada and in the United States, with the country’s largest trucking fleet.
TFI should therefore benefit in two ways during a recession. A higher U.S. dollar means that it will get more bang for its Canadian buck, and will still be transporting a diverse set of goods, meaning that if one area slumps, another can pick it up.
Clearly the company isn’t worried. Its latest results showed record second-quarter operating results, with continuing operations up 21% from the same time last year. Over the next five years, the company expects earnings to grow 20% annually.
At around $40 per share at writing, that leaves a potential upside of 30% as of writing, and a strong 2.46% dividend yield for investors who get in now.
The banking industry is a great place to stash some stocks if you’re looking to buy and hold, which, frankly, you should be doing. BMO is a great option, as the company is performing pretty much on par with its peers, with one of the higher dividends.
The company has seen steady dividend growth of 30% over the last five years, and currently offers a 4.47% dividend yield.
While the company might not be expanding into other areas like the some of the other top banking institutions, it still offers a diversified portfolio that has brought in strong earnings, with revenue increasing by 5% for the last quarter.
With a share price around $93 per share as of writing, that leaves a potential upside of 11% as of writing to reach fair value.
Finally, if you’re looking to invest, why not invest in an investment firm? Fiera has been growing like a weed in the last few years as an asset management company. The firm currently has $150 billion in assets under management, and has continued to grow as a global company with no signs of slowing down.
In fact, analysts believe two new acquisitions should significantly add to the company’s earnings for 2020, with a 13% increase in earnings per share.
Yet again, the stock is trading around $10 per share as of writing, and while that’s close to fairly valued at the moment, in the next 12 months analysts expect the stock to sky rocket by 50% with these new acquisitions. That makes its 8.34% dividend yield look pretty strong right now.