Canadians are socking more money because of the global pandemic. Financial priorities are shifting the longer the health crisis extends. Regarding investments, people are re-evaluating their options. With vacation plans and outdoor entertainment virtually on hold, there’s free cash to use for investment purposes.
The climate of uncertainty persists, although your money will not grow if you keep it idle. Thus, allowing some of it to work isn’t a bad idea. Scotiabank’s 2021 Retail Investor Sentiment Survey results give a fascinating insight.
About 67% of Canadians still see an opportunity in the current market environment. One in five investors or 20% report having increased confidence in the financial markets since the COVID-19 vaccine approvals. Still, 33% are cautious while the pandemic remains a threat.
People with investment appetites and prepared to take calculated risks have available options. Inter Pipeline (TSX:IPL) and Bird Construction (TSX:BDT) are screaming buys. Both companies bagged new deals that should be growth catalysts in 2021 and beyond.
More valuable than before
The Heartland Petrochemical Complex is Inter Pipeline’s crown jewel. It’s Canada’s first integrated propane dehydrogenation & polypropylene complex. The $4 billion project is why Brookfield Infrastructure Partners attempted but failed in its hostile takeover bid of this $7.7 billion company.
Inter Pipeline shareholders unanimously rejected the bid and claimed the offer was highly opportunistic. The Special Committee that reviewed the proposal concluded that the hostile bid was inadequate. It does not reflect fair and full value for the common shares of Inter Pipeline.
The failed bid by Brookfield has little bearing on the energy stock. At the current share price of $18.05, investors are up 53.55% thus far in 2021. They’re also enjoying a modest 2.66% dividend yield. The stock’s total return over the last two decades is 1,147.13% for a 13.43% compound annual growth rate (CAGR).
On April 22, 2021, Inter Pipeline announced that it had signed contracts with buyers for 60% of production from its petrochemical plant in Fort Saskatchewan, Alberta. According to Inter Pipeline’s CEO Christian Bayle, the deal should make the company more valuable. Management expects the Heartland plant to open up new markets and boost earnings.
The shares of Bird Construction will have wings to fly from 2021 to 2026. Its wholly-owned subsidiary, Stuart Olson Industrial Projects, recently secured a deal with a long-standing industrial client in Alberta. The five-year maintenance, repair, and operations (MRO) services contract is worth over $550 million.
Bird Construction is based in Mississauga, Canada and has been in the business since 1920. It has grown into a $466 million general contractor today. At $8.80 per share and 4.43% dividend yield, you can’t find a better deal than this one. Over the last 20.3 years, the total return of this industrial stock is 2,981.62% (18.39% CAGR).
Except for Quebec, Bird Construction serves the industrial, commercial and institutional (ICI) markets in all provinces. It caters to heavy industrial markets too. The company’s hopes to expand and offer new services while capitalizing on cross-sale opportunities. Its end goal is to enhance the long-term value for all stakeholders.
Attractive income stocks
The worry of most Canadians today is the lack of savings for retirement. Time is of the essence but it’s not too late to catch up. If your finances allow, make sure the money works for you. Inter Pipeline and Bird Construction are the attractive stock picks right now.
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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. The Motley Fool recommends BANK OF NOVA SCOTIA, BROOKFIELD INFRA PARTNERS LP UNITS, and Brookfield Infrastructure Partners.