The S&P/TSX Composite Index was down 49 points in early afternoon trading on February 10. However, North American stocks have continued their red-hot run since the second half of 2020. In November, I’d looked at the increased savings rates for millions of Canadians. Unfortunately, many Canadians are sitting on cash and missing out on terrific gains since the pandemic started. Today, I want to look at how Canadians can look to spend $3,000 on three top dividend stocks. Let’s dive in.
This stock can soar with a red-hot housing market
Canada’s stock market is not the only thing that has soared during the pandemic. The domestic housing market has also been on a tear. Initially, analysts predicted that there would be a pullback in 2021. However, low interest rates and pent-up demand look like a good bet to fuel another strong year.
Bridgemarq Real Estate (TSX:BRE) provides various services to brokers and REALTORS across Canada. This dividend stock has climbed 9.8% year over year as of early afternoon trading on February 10. The stock is up 3.7% in 2021 so far. Before the new year, I’d suggested that investors should stick with housing stocks based on the solid fundamentals in the market.
Investors can expect to see Bridgemarq’s final batch of results in early March. Its shares last had a price-to-earnings (P/E) ratio of 31, which falls below the industry average. Better yet, it offers a monthly dividend of $0.113 per share. That represents a tasty 8.8% yield.
Stash this green energy dividend stock
The new Biden administration in the United States has made renewable energy a top priority. Canada’s oil and gas sector has taken a hit, as it pulled out of the Keystone XL project and now has its sights on Enbridge’s Line 5 construction. However, this could provide a bigger boost to Canada’s own burgeoning green energy space.
TransAlta Renewables (TSX:RNW) is a Calgary-based company that develops, owns, and operates renewable power-generation facilities. Investors can expect to see its fourth-quarter and full-year 2020 results on March 3. Shares of this dividend stock have climbed 29% year over year. However, the stock has been static in 2021 so far.
This dividend stock last had a price-to-book (P/B) value of 2.5, which falls below the industry average. It offers a monthly dividend of $0.078 per share, representing a solid 4.3% yield.
One more stock to snag in February
Sun Life Financial (TSX:SLF)(NYSE:SLF) is the final dividend stock I want to look at in this piece. It is one of the top financial services and insurance companies in Canada. Shares of Sun Life have increased 8.8% in 2021 so far. The company is set to release its fourth-quarter and full year 2020 results in a few days.
Shares of Sun Life last possessed a favourable P/E ratio of 15 and a P/B value of 1.6. It boasts an excellent balance sheet and is on track for strong earnings growth going forward. Sun Life last paid out a quarterly dividend of $0.55 per share. That represents a 3.5% yield.
Here are 10 more stocks to stash in February...
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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 owns shares of and recommends Enbridge.