The S&P/TSX Composite Index hasn’t taken a nasty plunge since March 1, 2021. Canada’s primary stock market continues to is up by the double-digits (+10.1%) year-to-date. Investors can still feel the market uncertainty and maintain guarded optimism. Fortunately, some top stocks are trading at reasonable prices. If you’re scouting for the best buys at less than $10, three names are the top prospects.
Nexus (TSX:NXR.UN) is attractive not only because the price is within your budget, but also because the dividend yield is hefty. The share price is $8.43, while the dividend yield is 7.6%. This real estate investment trust (REIT) outperforms the TSX with its 11.32% year-to-date gain.
The $280.68 million REIT is growth-oriented and highly diversified. While it owns and operates retail and office real estate properties, the focus is more on industrial assets. The portfolio consists of 76 properties where 41 or 54% are industrial.
Nexus’ strong strategic relationship with RFA Capital gives them unique access to a pipeline of properties. Last year was challenging, yet the REIT posted a 2.3% and 3.4% increase in revenue and net rental income compared with 2019. Don’t expect much on capital gain, but the real estate stock is a bargain at the current share price.
Another intriguing buy for frugal investors is Bird Construction (TSX:BDT). The industrial stock trades at $9.07 per share and pays a 4.36% dividend. Over the last two decades, this income stock’s total return is 1,813.25% (15.95% compound annual growth rate (CAGR). Thus far, in 2021, current shareholders are ahead by 14.67%.
The $481 million general contractor from Mississauga, Canada, has been in existence since 1920. Stuart Olson Industrial Projects is now a wholly-owned subsidiary of Bird Construction. You have two prominent builders joining forces to create a leading construction company in Canada.
On February 8, 2021, a long-standing industrial client in Alberta awarded Stuart Olson a five-year contract worth over $550 million. Bird’s subsidiary will provide maintenance, repair, and operations (MRO) services. In 2020, construction revenue and net income increased by 31.9% and 150%. You can value for money when you take a position in the stock in 2021.
The stock performances of Nexus and Bird Construction pales in comparison to the share of Corus Entertainment (TSX:CJR.B). This communications services stock is up by a resounding 51.2% year-to-date. Its current share price is $6.44, while the dividend yield is a decent 3.83%.
Had you invested $20,000 on December 31, 2020, your money would be worth $30,234.74 today. The Shaw family of Shaw Communications controls Corus Entertainment. Also, good news is pouring in this side of North America. Besides the better-than-expected earnings results in the most recent quarter, the company won a distribution deal with American streaming service Hulu.
Corus Entertainment CEO Doug Murphy brags the deal is a breakthrough multi-year agreement. In the first six months of fiscal 2021 (month ended February 28, 2021), revenue dropped 8% versus the same period in 2020. However, adjusted net income and free cash flow rose by 11% and 29%, respectively.
Even if you’re tight on the budget, the TSX offers a host of affordable but top-performing dividend stocks. Nexus REIT, Bird Construction, and Corus Entertainment are the best deals you can find in Q2 2021. Own them now and be a passive investor.
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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 Christopher Liew has no position in any of the stocks mentioned.