Now that we are in the fourth and final quarter of fiscal 2019, investors can expect their earnings to ramp up by the end of the year. November has a history of being an incredibly busy year for some of the top-performing stocks on the TSX. Investors looking to make the most of investment opportunities in this month could consider adding some decent dividend-paying stocks to their investment portfolios.
When you think of dividend-paying stocks, what is better to consider than a couple of great Dividend Aristocrats in the Canadian stock market? Dividend Aristocrats are companies that have a history of increasing dividend payments for at least five successive years. A dividend increase is a show of confidence that the company has in its growth potential.
To this end, I am going to talk about Manulife Financial (TSX:MFC)(NYSE:MFC) and Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ). These two are excellent dividend-paying stocks with great buy-and-hold potential. Let us take a better look at them, so you can decide whether or not to add them to your portfolio in November.
Manulife Financial
Manulife Financial is one of Canada’s premier insurance companies. Scheduled to report financial earnings for the quarter in the first week of November, Manulife did manage to lose its Dividend Aristocrat status. The last financial crisis was not kind to plenty of companies all over the world, and Manulife was one of them.
Since then, Manulife has regained its status as a Dividend Aristocrat in the Canadian stock market. Its dividend growth now extends to a five-year streak and has raised dividends by an average of 10% per year. The company also has a respectable dividend-payout ratio of 33.26%, and investors can expect healthy dividend growth going into 2020 and beyond.
The real star of the show for Manulife has been its Asian markets, serving as a primary driver for the insurance company’s growth. Over the next five years, Manulife expects to see a 9% earnings growth — positive signs for investors who buy right now.
Canadian Natural Resources
With an unbroken dividend payment streak of 19 years, Canadian Natural Resources presents an excellent opportunity for investors going into November. The recent slowdown in Canada’s energy sector has affected a lot of companies. Still, CNRL is a company taking things in its stride.
Instead of reeling from the downturn, CNRL used the slowdown as an opportunity to drive better bargains for investors by streamlining operations, increasing efficiencies, and improving its prospects for the short- and long-term future. On June 27, 2019, for instance, the company closed a deal to buy Devon Energy’s Canadian oil sands operations.
CNRL paid $3.8 billion to acquire Devon Canada, a company capable of producing 128,000 barrels of oil per day. The company expects this deal to result in annual savings of $135 million for the company. Analysts expect the company’s current value to be a discount of at least 30%.
Expected to gain over 32% in the coming 12 months, the company’s steady dividends for 19 successive years puts CNRL in an ideal position to buy.
Foolish takeaway
I feel that both Manulife and Canadian Natural Resources could be potentially great buys moving forward into 2020. Manulife is enjoying a strong run of performances due to its Asian segment, and CNRL is likely to reap the benefits of the smart moves it made during the market slowdown.
