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2 Canadian Stocks Under $30 to Buy Now

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Telus (TSX:T)(NYSE:TU) and Maple Leaf Foods (TSX:MFI) are two Canadian stocks under $30 I suggest to buy now. These two companies have been resilient during the pandemic and their outlook is bright.

Telus

Telus has a reputation for having one of the best quality networks in Canada. It has won more than its fair share of awards. It’s one of the best telecom stocks to buy now.

Telus posted impressive numbers in the first quarter, despite significant lockdown headwinds. Wireline has been a major source of strength lately.

Indeed, the telecom company’s revenue grew 9% to $4.02 billion in the first quarter. Assets of TELUS International, TELUS Health, and TELUS Agriculture all recorded strong revenue growth in part due to recent acquisitions and organic growth, as these companies successfully drive new customer growth.

The national telecommunications company reported 31,000 net additions of mobile customers and 51,000 fixed customers, thanks in part to Telus’ PureFibre service. 

Profit in the first quarter of 2021 fell 5.7% to $333 million. Adjusted for restructuring and other costs, Telus’s profit was $0.27 per share in Q1 2021 compared to $0.32 per share in Q1 2020. Telus has increased its quarterly dividend to $0.3162 per share, up 8.6% from the previous year. The dividend yield is close to 5%.

Earnings are expected to grow at an average annualized rate of 13.5% in the next five years.

For those looking to bet on the 5G trend, Telus may be one of the best ways for Canadians to do so before the economy has a chance to fully reopen. 

Motley Fool Canada Makes 5G Buy Alert

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Maple Leaf Foods

Maple Leaf Foods owns the popular brands Maple Leaf Prime, Schneiders, Lightlife, and Field Roast.

Canada’s leading consumer protein company reported higher sales and profits in the first quarter of 2021.

Maple Leaf sales were $1.05 billion for the quarter ended March 31, up 3% from $1.02 billion in the previous year quarter. Sales of the meat protein group increased 3.3%, while sales of the vegetable protein group decreased 8.1%. 

Meanwhile, Q1 2021 net income was $47.7 million compared to a loss of $3.7 million in the first three months of 2020. On an adjusted basis, Maple Leaf earned $0.26 per share in the first quarter of 2021, up 23.8% from adjusted earnings of $0.21 one year earlier.

Maple Leaf expects to achieve mid- to high-single-digit sales growth in the meat protein group in fiscal 2021. As for the vegetable protein group, the company expects sales growth for the year to be broadly in line with the strategic target of 30%.

Earnings are expected to grow at an average annualized rate of 6.9% in the next five years.

The company is investing aggressively in high-growth areas such as sustainable meat and vegetable proteins. The company could see higher operational performance thanks to a diversified product base and mix of distribution channels over the next few years.

Maple Leaf pays a quarterly dividend of $0.18 per share for a yield of close to 3%. With a payout of only 50%, the protein company has room to increase its dividend in the future.

Improving profitability and expanding margins could push the stock higher over the long term, so it’s one of the best stocks under $30 to buy now.

Motley Fool Canada Makes 5G Buy Alert

5G is one of the greatest arrivals in technology since the birth of the internet. We could see plenty of new wealth-building opportunities in 2021 that would potentially dwarf any that came before them.

5G has the potential to radically change our lives and society as we know it, but if you’re an investor, the implications are even greater — and potentially much more lucrative.

To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop.

Learn More Today!

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 Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

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