The Motley Fool

3 Dividend All-Star Stocks to Buy This Summer

Image source: Getty Images.

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.

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...

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Magna Int’l.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.