Last week, I’d focused on three dividend all-star stocks that were worth owning to kick off the summer. Some of the qualifiers for these dividend all-star stocks include dividend-growth history, the yield, and overall reliability. In this previous article, I’d targeted stocks in energy, banking, and grocery retail. Today, we are going to dip into three different sectors. Let’s jump in.
This mortgage insurer is one of my favourite dividend all-star stocks
Back in June, I’d suggested that Genworth MI Canada (TSX:MIC) was worth adding at its value entering the summer season. Shares of Genworth have dropped 32% in 2020 as of close on July 13. It is not too late for investors to get in on this attractive dividend all-star stock.
In the first quarter of 2020, Genworth demonstrated its ability to weather the storm of the COVID-19 pandemic. Net operating income only fell 1% year over year to $117 million while total premiums written rose 8% to $114 million. New insurance written increased on the back of a larger transactional mortgage originations market.
Shares of Genworth last had a price-to-earnings (P/E) ratio of 6.7 and a price-to-book (P/B) value of 0.8. This is very attractive value territory. Genworth also offers a quarterly dividend of $0.54 per share, which represents a tasty 6.6% yield. Moreover, the company has delivered dividend growth for 11 consecutive years.
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The reopening should provide a boost for the auto industry
The COVID-19 pandemic has put pressure on the auto industry, but there is finally reason for optimism, as economies around the world aim for a reopening. Magna International (TSX:MG)(NYSE:MGA) is the largest auto parts manufacturer in North America. Its stock has dropped 11% in 2020 so far. However, shares are up 24% in the last three months.
Magna qualifies as a dividend all-star stock, because of its excellent balance sheet and strong track record. In Q1 2020, the company saw sales decrease 18% year over year to $8.7 billion. Meanwhile, cash from operations still climbed 8% to $639 million. Management is confident that Magna will be able to bounce back, as it pushes for a safe restart of production at its facilities.
Shares of Magna last had a favourable P/E ratio of 15 and a P/B value of 1.3. Magna has delivered annual dividend increases for 10 straight years. This dividend all-star stock currently offers a quarterly distribution of $0.40 per share, representing a 3.4% yield.
One more top dividend all-star to target today
The last dividend all-star stock I want to focus on today is Great-West Lifeco. This financial services company is engaged in life and health insurance, retirement and investment services, and asset management. Its shares have fallen 25% in 2020.
In Q1 2020, the company saw total base earnings in Canada rise to $273 million over $257 million in the prior year. However, weakness in the United States and Europe dragged down its total earnings for the quarter. Great-West is a dividend all-star stock because of its fantastic balance sheet and its impressive yield and history.
Its stock last possessed an attractive P/E ratio of 10 and a P/B value of 1.0. Moreover, Great-West offers a quarterly dividend of $0.438 per share. This represents a monster 7.3% yield. The company has delivered dividend growth for five consecutive years.
While we are focusing on all-star stocks...
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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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Magna Int’l.