The S&P/TSX Composite Index has slipped in the final days of January in step with global markets. Volatility has been sparked by worries surrounding the outbreak of coronavirus across the world. Yesterday, the World Health Organization (WHO) declared an international public emergency.
Investors may want to go on the defence, as market turbulence ramps up. That is why I want to look at some of my favourite high-yield dividends stocks that are worth a look in the month of February.
In late 2019, I’d discussed why Vermilion Energy (TSX:VET)(NYSE:VET) was such an attractive target for investors who were on the hunt for big monthly income. Shares of Vermilion have dropped 28% year over year as of close on January 30. Production has slipped in two straight quarters, which has put off investors.
We can expect to see the company’s fourth-quarter and full-year results for 2019 sometime in February. In the third quarter, production fell 6% year over year due to lower results in Canada, Netherlands, Ireland, and Australia. Fortunately, Vermilion approved a 2020 Exploration and Development capital budget of $450 million with an emphasis on returning value to shareholders.
The stock last possessed a favourable price-to-earnings ratio of 9.1 and a price-to-book value of 1.2. Vermilion offers a monthly dividend of $0.23 per share, which represents a monster 13.6% yield.
Back in May, I’d discussed how the end of the trade battle between the United States and Canada could impact steel and metals stocks. Russel Metals (TSX:RUS) is a Canada-based metal distribution company. Its shares have climbed 1.4% year over year as of close on January 30.
Investors can expect to see its fourth-quarter and full-year results for 2019 in early February. In the year-to-date period up to Q3 2019, the company reported declines in EBIT, revenues, and net income. Challenging market conditions contributed to this poor year-over-year performance.
The board of directors still approved a quarterly dividend of $0.38 per share, representing a tasty 6.9% yield. Shares possess a favourable P/E ratio of 10.5 and a P/B value of 1.4. Russel Metals is a premium dividend payer, but global economic uncertainty will continue to apply downward pressure to steel prices. I still like the value Russel stock offers today.
Brookfield Property Partners
Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) owns, operates, and invests in commercial properties in North America, Europe, Brazil, and Australia. Shares have climbed 12.7% year over year as of close on January 30. This company is also set to unveil its Q4 and full-year results for 2019 in the month of February.
In the third quarter, the company reported net income of $870 million compared to $722 million in the prior year. Net income per LP unit rose to $0.46 over $0.44 in Q3 2018. However, same-property NOI was flat for the quarter and in the year-to-date period.
The stock last possessed a P/E ratio of 12.8 and a P/B value of 0.6, putting it in favourable territory. Value-wise Brookfield looks attractive, but its high dividend may be at risk, as its earnings growth has slowed. This is something for investors to monitor going forward. The stock last paid out a quarterly dividend of $0.33 per share, which represents a strong 6.9% yield.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Property Partners LP.