Young investors are facing a major challenge in navigating the present-day market. It may be prudent to adopt a conservative approach, as experts and analysts continue to warn of potential volatility in early 2023. Today, I want to target three of my top dividend stocks that young investors should own in 2023. Let’s dive in.
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Young investors can trust this telecom dividend stock for the long haul
Cogeco Communications (TSX:CCA) is a Montreal-based communication corporation that operates throughout North America. Shares of this dividend stock have dropped 33% year over year as of close on January 30. The stock has dipped 11% so far in 2023.
This company released its first-quarter (Q1) fiscal 2023 earnings on January 12. Cogeco reported total revenues of $762 million — up 6.1% from the previous year. Meanwhile, profit jumped 3.2% to $120 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and it aims to give a more accurate picture of a company’s profitability. Cogeco delivered adjusted EBITDA growth of 5.1% to $367 million.
Management opted to adjust its financial guidelines in Q1 FY2023. Cogeco revised revenue and adjusted EBITDA growth projections between 0.5% and 2.0%. Meanwhile, the board of directors announced a quarterly dividend of $0.776 per share. That represents a solid 4.4% yield. This dividend stock possesses a very favourable price-to-earnings (P/E) ratio of 7.4. Young investors should consider this undervalued dividend stock as we look ahead to February.
Here’s a dividend stock in the financial space that also offers nice growth potential
TMX Group (TSX:X) is a Toronto-based company that operates exchanges, markets, and clearinghouses primarily for capital markets in Canada and around the world. Financialization of the broader economy has expanded significantly since the 2007-2008 financial crisis. Young investors should feel comfortable betting on the future of capital markets. Shares of TMX Group have increased 1.7% year over year.
Investors can expect to see this company’s fourth quarter and full-year fiscal 2022 earnings on February 6, 2023. In Q3 2022, TMX Group delivered revenue growth of 16% to $269 million. Meanwhile, adjusted net income rose 6% to $93.7 million and adjusted diluted earnings per share (EPS) jumped 7% to $1.68.
This dividend stock currently possesses a favourable P/E ratio of 14. Young investors can also count on its quarterly dividend of $0.83 per share, which represents a 2.5% yield. TMX Group offers a shot at strong capital growth in addition to decent income.
This energy giant is perfect for a young investors’ portfolio in 2023
Enbridge (TSX:ENB) is the third dividend stock I’d suggest young investors snatch up at the end of January. This Calgary-based energy infrastructure company is a heavyweight that you can rely on for the long term. Shares of Enbridge have jumped 1.7% in the new year.
This company is set to unveil its final batch of fiscal 2022 results on February 10. Enbridge delivered adjusted earnings of $1.4 billion, or $0.67 per common share, in Q3 2022 — up from $1.2 billion, or $0.59 per common share, in the previous year. Meanwhile, adjusted EBITDA rose to $3.8 billion compared to $3.3 billion in the third quarter of fiscal 2021.
Shares of this dividend stock possess a solid P/E ratio of 20. It offers a quarterly dividend of $0.887 per share, representing a very tasty 6.5% yield.
