When markets are volatile as they are now, it’s good to know that you can count on dividends. There are many stocks paying dividends on the TSX. While you might think first of financial and telecom stocks when looking for dividends, stocks in other sectors offer interesting dividend yields and will bring some diversification to your portfolio.
Computer Modelling Group
The number of tech stocks listed on the TSX is pretty small. And when we think about Canadian tech stocks, we think about big names like Shopify and Constellation Software.
But there are smaller tech companies worth looking at, such as Computer Modelling, a computer technology company with a market capitalization of $550 million.
Computer Modelling was founded in 1978 and is headquartered in Calgary. The company provides reservoir simulation software, including thermal, compositional, black oil and enhanced oil recovery processes to oil and gas companies in Canada.
In addition, the company provides professional services including assistance, advice, training and contract research. It also sells its products and services in around 60 countries.
The computer company pays a quarterly dividend of $0.10 per share, which has a forward dividend yield of 5.7%. The stock has a 15-year CAGR of over 20%, which is very high. Computer Modelling is thus a good stock to buy if you’re interested in both growth and income.
NFI Group manufactures heavy transit buses, medium buses, low-floor buses and motor coaches in the United States and Canada. The company has two segments: manufacturing operations and aftermarket operations. It also provides parts of buses and coaches and assistance services.
NFI was founded in 1930 and is headquartered in Winnipeg. The company was previously known as New Flyer Industries until it changed its name to NFI Group in May 2018.
NFI is about to finalize its largest order for battery-powered electric buses from the Seattle area transit agency, indicating greater market demand for zero-emission buses.
King Country Metro, the transit authority of Seattle and the surrounding area, has agreed to buy 40 Xcelsior 60-foot, zero-emission, battery-powered electric heavy-duty transit buses from NFI. It plans to order 80 additional battery-powered electric buses in the coming year.
With a price of around $1.3 million each, the sale is a big win for NFI.
NFI pays a quarterly dividend of $0.425 per share for a forward dividend yield of 5.4%. The stock is very cheap, with a five-year PEG of only 0.5.
Extendicare provides care and services to seniors in Canada. The company was founded in 1968 and is based in Markham. Extendicare offers long-term care services, housing services for retirees, and home health care services.
After 52 years of operation, it now operates 120 care centres for the elderly and retirement centres. The company continues its expansion across the country. Extendicare also offers third-party liability insurance products in the United States.
As the population is aging, we can expect the demand for Extendicare services to increase, so revenue should keep growing.
Extendicare is installing new management and a new internet-based system to maximize its workforce and automate work processes.
If you’re looking for a regular stream of income, Extendicare will interest you. This healthcare stock pays a monthly dividend of $0.04, which gives a dividend of $0.48 annually. The forward dividend yield is 5.8%.
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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 Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Constellation Software and Shopify. The Motley Fool recommends NFI Group.