For the past couple of years, I have been describing how investors can get free U.S. dollars (USD) into their accounts by purchasing shares of Canadian companies that pay USD dividends. You simply buy shares of these companies on a Canadian stock exchange, phone your broker to have them journaled into the American dollar side of your account, and watch the dividends grow your USD holdings to the point where you can begin using them to buy U.S. stocks.
The problem is that there are only a handful of companies that possess this quality. If they are expensive, I have a hard time buying shares, since I don’t like paying a premium, or even full price, for anything. Lucky for you, though, many of these stocks are now on sale. Start buying these three stocks and begin raking in your USDs now.
The fertilizer giant
A company that every USD dividend collector should own is Nutrien (TSX:NTR)(NYSE:NTR). Even if it weren’t for the fact that it pays a USD-denominated dividend, this stock should be in everyone’s portfolio. The global fertilizer king stands to gain from a growing global population.
While its retail locations, global operations, and commanding fertilizer business make it a must-own company, the dividend is what investors really need to consider. Nutrien pays a quarterly dividend of $0.45 a share, which represents an annual yield of 3.78% at its share price as of this writing, and it has been growing that payout steadily.In 2019, the company grew its dividend by about 4.6%.
Nutrien has been under pressure recently due to the pressures of trade tensions with China and a soft agriculture market. This has driven its shares down to a point of excellent value.
The restaurant king
Restaurant Brands International also provides the gift that keeps on giving. The internationally diverse restaurant chain lives up to its name, with global locations in the fast-food business. It owns Popeyes Chicken, Tim Hortons, and Burger King — well-recognized brands that keep feeding its bottom line.
The real reason you want to own this company, though, is for the yield. After falling double-digit percentage points, this stock is trading at a discount to its all-time high price of over $100 a few months ago. The current yield sits at around 3.24% with a lot of dividend growth ahead in the future.
The underwear mogul
Most of us wear underwear, I assume, giving this company a market that can’t be beaten. Gildan Activewear (TSX:GIL)(NYSE:GIL) sells underwear, T-shirts, hoodies, and more to individuals globally. This company is the consumer staples of the clothing world, giving it staying power, since it does not need to compete with the fashion giants.
After its previous quarter’s disappointing outlook, Gildan’s stock fell considerably, around 25%, on the day of the announcement. The clothing provider has recovered somewhat but still sits well below its highs.
Dividend investors should rejoice, though, since the USD dividend yield this company pays has swelled as the shares fell. Currently, the yield sits at around 1.85%. The small yield belies its historical growth, though, with 2019’s hike amounting to an increase of 20% last year.
The bottom line
Each of these stocks is trading at compelling valuations at the current share prices. While none of these stocks are ridiculously cheap, they are all significantly off their highs. Buy them now for their growth, diversification, and, of course, for their USD yields today.
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Fool contributor Kris Knutson owns shares of Nutrien Ltd, GILDAN ACTIVEWEAR INC., and RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool recommends GILDAN ACTIVEWEAR INC., Nutrien Ltd, and RESTAURANT BRANDS INTERNATIONAL INC.