The stock market remains the best place to invest and grow your money over time. Some financial advisors say dividend investing, not frugal living, can secure your financial future. Moreover, Canadians with limited funds or who are price conscious can buy the best TSX stocks for under $8 per share.
If you want value for money, Chemtrade Logistics Income Fund (TSX: CHE.UN), Medical Facilities (TSX: DR), and Computer Modelling Group (TSX: CMG) should be tops on the shopping list of income investors in Q3 2021.
Monthly dividends
Chemtrade Logistics is a generous monthly dividend payer. At only $6.80 per share, the dividend yield is an ultra-high 8.92%. Also, the stock’s performance has been steady thus far in 2021 (+21.66% year to date). The company’s investment pitch is that investors can participate in growth and income from its diversified portfolio in North America, global sales, and services.
The $710.76 million income fund has three core business segments that feature high-quality industrial chemical products. A wide range of industries and applications use Chemtrade’s products. The universal and high-demand products include Sulphur & performance chemicals, water solutions & specialty chemicals, and electro-chemicals.
Chemtrade’s risk-sharing contracts and diversified customer base are its competitive advantages, because they reduce commodity and market risks. The specialty chemicals company saw years of organic and step-change growth since commencing operations since 2001 through several strategic acquisitions.
High-quality medical facilities
If you want exposure to the healthcare sector, particularly medical care facilities, Medical Facilities from Toronto is a perfect choice. The $222.72 million company owns a diverse portfolio of high-quality surgical facilities in the United States.
At $7.16 per share (+3.74% year to date), the dividend yield is 3.91%. The company has a controlling interest in four specialty surgical hospitals and six ambulatory surgery centres (ASC) in California. Five of the ASCs are in partnership with NueHealth LC.
In Q1 2021 (quarter ended March 31, 2021), the operations were steady. Management reported a 5.79% revenue growth versus Q1 2020, although net income slid 19.3%. Still, Medical Facilities expect to increase shareholder value via the continued organic growth at its current facilities. It will also leverage its existing network to create and develop new, accretive ASCs.
Dividend-paying tech stock
Computer Modelling Group belongs to TSX’s vaunted technology sector. However, this tech stock should attract income investors, because it pays dividends — a rarity in the sector. At $4.91 per share, the dividend offer is 3.86%. The price target of market analysts in the next 12 months is between $6.75 (+37.47%) and $8 (62.93%).
This computer software technology and consulting company develops and licenses reservoir simulation software in Canada and abroad. CMG caters to oil and gas companies, mostly blue-chip names in the energy industry. In fiscal 2021 (year ended March 31, 2021), management said the decline in the top and bottom lines were due to economic uncertainties and volatile commodity prices.
Because clients chose to curtail spending, revenue and net income slid 11.11% and 14.03% versus fiscal 2020. CMG maintains cautious optimism, because of the ongoing progress in the distribution of COVID-19 vaccines. Management expects the industry outlook and customer sentiment to improve in fiscal 2022.
Great reopening plays
Chemtrade Logistics, Medical Facilities, and Computer Modelling are valuable additions to any dividend portfolio. All companies should return to normal operations when the economy fully reopens soon.
