The Motley Fool

Got $4,000 to Invest? 3 Super Dividend Stocks Yielding Up to 9.5%

Image source: Getty Images

Investors with some cash on hand to invest have some interesting prospects available on the Canadian market. Earlier this month, I’d discussed three housing stocks that looked good as the domestic real estate market has gained momentum. Today, I want to look at three of my top dividend stocks worth scooping up for Canadians with cash to invest. These equities offer big income and nice value right now.

Invest in green energy with this top dividend stock

TransAlta Renewables (TSX:RNW) is a Calgary-based company that develops, owns, and operates renewable power generation facilities. Back in May, I discussed stocks that were perfect for investors who were gearing up for the future. Renewable energy producers had a banner decade in the 2010s, greatly increasing their share of total energy generation.

Shares of this dividend stock have increased 7% in 2020 as of close on August 27. The stock is up 30% year over year. In the second quarter of 2020, comparable EBITDA rose to $115 million compared to $111 million in Q2 2019. Adjusted funds from operations per share climbed to $0.34 over $0.30 in the previous year.

The stock last had a price-to-book ratio of 1.9, putting TransAlta in solid value territory relative to industry peers. It last delivered a monthly dividend of $0.07833 per share. This represents a strong 5.8% yield. I’m still bullish on this green energy dividend stock.

One housing stock that offers monster income

At the start of this piece, I discussed the impressive momentum in Canada’s housing sector. Bridgemarq Real Estate (TSX:BRE) will be a direct beneficiary of surging activity in Canadian real estate. Its shares have increased 19% month-over-month as of close on August 27. This is a dividend stock worth targeting as Canada’s housing market gains momentum.

In Q2 2020, Bridgemarq generated a net loss of $9.2 million or $0.97 per share – up from $7.8 million in the second quarter of 2019. However, revenues still fell marginally year over year. This was due to broad economic and real estate weakness. Sales have surged in June and July, which is great news for this company going forward.

The board of directors announced a monthly distribution of $0.1125 per share in its second quarter report, which represents a hefty 9.5% yield. Moreover, this dividend stock boasts an attractive price-to-earnings ratio of 15.

Energy is back on track: Target this dividend stock

Canada’s energy sector has struggled due to the COVID-19 pandemic. A global economic reopening has pushed up demand for oil and gas. This has been positive for energy stocks. Inter Pipeline is engaged in the petroleum transportation and storage, and natural gas liquids processing businesses in Canada and Europe. Its shares have increased 10% over the past three months.

Inter Pipeline last had a P/E ratio of 17 and a P/B value of 1.4, putting the dividend stock in solid value territory relative to its industry peers. Inter Pipeline last paid out a reduced monthly dividend of $0.04 per share, which represents a 3.4% yield.

On the topic of top stocks for those with cash to invest . . .

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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.

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.