When is the right time to buy a high-yield dividend stock? Ideally, when it’s just turning the corner around and is going up. This way, you may be able to capitalize on two fronts: you can lock in the still excellent yield while making a profit off of the recovery-fueled growth of the stock.
With that in mind, there are three high-yield dividend stocks that you may consider buying based on their blazing growth in the last few days.
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A construction company
The construction industry in Canada is one of the tangential victims of the housing bubble burst in the country, which reflects in the performance of stocks like Bird Construction (TSX: BDT). The stock fell 43% in under a year, but that pattern was also influenced by a robust post-pandemic growth phase.
However, the stock changed trajectory around mid-October, and since then, it has gone up by about 36%, and if the trend is set to continue, you may consider taking advantage of it. The current yield is 4.9%, but it may not remain this attractive, as the stock gets closer to its pre-pandemic peak.
It’s also trading at a fair valuation, and a recent 10% increase in the company’s dividends is just one more reason to consider adding this company to your portfolio, ideally for a long, bullish run.
A real estate investment trust
If you are looking for an undervalued stock from the real estate sector that also offers a juicy yield, Automotive Properties (TSX: APR.UN) is an option worth considering. It’s trading at a price-to-earnings ratio of just 7.7 and offering a juicy 6.3% yield. Ironically, this yield comes with just a 15% discount, which is shrinking day by day.
The stock has gone up over 12.7% in half a month already and may keep moving in the right direction for some time now. However, unless it’s going for a new all-time-high price point, you may not see phenomenal growth from this point on. Still, the high yield is quite attractive, especially for one of the small-cap stocks.
A propane company
As one of the largest propane suppliers in North America, Superior Plus (TSX: SPB) can be considered a leader in its niche and a relatively safe stock. With a beta of 0.98, it’s also one of the low-volatility stocks in Canada, though by a small margin. However, what makes this truly attractive is the mouth-watering 6.5% yield.
But the yield is shrinking quite rapidly, as the stock moves up quickly. It shot up 13.5% in a few days, and it may continue to go up, propelled by more than just a push from the bullish stock market. As the winter grows wilder, the demand for propane, that’s used by more than a million Canadian households may grow as well. This might help Superior Plus stock gain more upward momentum.
Foolish takeaway
Even though the high-yield stocks are still offering generous dividends, it may not remain the case for long. If the stocks keep moving upward at the pace they have gathered recently, they may leave the yields behind in the dust, making now a good time to lock in the good yields they are offering.
