Is a bull market starting in Canada? The S&P/TSX Composite Index closed at 20,231.32 on June 15, 2021, pushing its year-to-date gain to 16.05%. Canada’s primary stock market index also rose 12.97% month over month. New names are listing including tech firm VerticalScope that made its market debut on the same day.
Meanwhile, Medexus Pharmaceuticals will begin trading on June 17, 2021, following its graduation from the TSX Venture Exchange. Now is the best time to invest in stocks as all the 11 primary sectors are in positive territory. Only four sectors are up by less than 10% thus far this year.
Investors have a slew of attractive choices like Corus Entertainment (TSX: CJR.B) and Nexus (TSX: NXR.UN). With the two stocks outperforming, your $5,000 investment can potentially double in a year.
Operational momentum
Corus Entertainment is back on the map following a challenging COVID year. Despite the 8% revenue drop in the first half of fiscal 2021 (six months ended February 28, 2021), net income rose 16% compared to the same period in 2020. The quarter’s highlight was the doubling of paying subscribers on streaming platforms to over 500,000.
On the stock market, Corus is up 43%, while the trailing one-year price return is 64.38%. At $6 per share plus the 3.65% dividend yield, you get value for money. Similarly, market analysts recommend a strong buy rating. They forecast a potential upside of 67% to $10 in the next 12 months.
According to Corus Entertainment President and CEO Doug Murphy, the quarterly results reflect the company’s strong operational momentum aided by sequential TV advertising revenue recovery. He also cites robust paid streaming subscriber gains and double-digit growth in the content licensing business.
Murphy adds that Corus has reached an inflation point. The $1.25 billion media and content company will build on the strength of its diversified portfolio in the dynamic industry environment. Management expects to deliver consolidated revenue growth year over year as Corus advances its strategic plan and expansion of financial flexibility.
Resilient dividend play
Nexus is an excellent dividend play if you desire recurring income streams. The $347.23 million real estate investment trust (REIT) is among the resilient stocks in the real estate sector. The year-to-date gain is 38.15. Furthermore, at $10.34 per share, the dividend yield is a hefty 6.23% dividend.
The REIT owns a quality portfolio that consists of industrial, retail, and office properties. Nexus is growth-oriented but primarily focused on industrial properties. The number of income-producing properties across Canada is 82, where 42 or 57% are industrial properties. Also, six industrial properties in London are under construction.
RFA Capital, a prominent privately-held real estate investment and asset management firm, is Nexus’s strategic investor and partner. In Q1 2021 (quarter ended March 31, 2021), property revenue increased by 6.38% versus Q1 2020. Its net operating income (NOI) grew 8.1%.
The competitive advantages of Nexus are the ample liquidity, robust pipeline of industrial acquisition opportunities, and multiple expansion prospects. Today, the REIT enjoys a high 94.4% occupancy rate (average) and stable, if not strong, rent collections.
Expect new highs
The TSX has entered record territory and could be on track to register new highs in the second half of 2021. If you only have $5,000 to invest, Corus Entertainment and Nexus are the top picks. Both stocks could potentially double your hard-earned money.
