Focus on Profitability With These 2 Canadian Gems

For investors looking to focus on profitability, these two Canadian stocks are certainly worth a look in this upside-down market.

| More on:
Profit dial turned up to maximum

Image source: Getty Images

In such a volatile market, it is not wise to depend on one or two sources of income. Having passive-income sources is absolutely necessary if you want to build wealth and beat inflation. And what can be a better source of income than dividend-paying stocks? 

Last year’s high-volatility market has turned many investors toward dividend stocks. These investments not only help in times of uncertainty, but reinvesting dividends can also make one’s portfolio stronger and help mitigate risks. Here are two of the most profitable stocks that you can add to your portfolio right now.

Bank of Nova Scotia 

Bank of Nova Scotia (TSX:BNS) recently exceeded analysts’ estimates as per the third-quarter report. The company received a big boost from its retail franchises in its fourth quarter. 

As per the company’s third-quarter report, Scotiabank’s revenue increased by 11% to $3.13 billion. The lender’s international unit saw revenue growth of 8.1% to $2.5 billion, with its net income surged 12% to $679 million. Scotiabank’s overall earnings per share of $2.06 topped the analysts’ expectations of $2.01 per share. 

Notably, Bank of Nova Scotia has not missed a single dividend payment since 1833 when it declared its dividend framework. Indeed, this is one of the best long-term dividend payers in the market. Over the past two decades, the company has increased its dividend at a CAGR of 9.2%. Enough said.

Restaurant Brands 

Restaurant Brands International (TSX:QSR) released its third-quarter report in November 2022. José Cil, the company’s chief executive officer, proudly commented that the strength of the company’s global, consolidated business model is reflected in the report, with Restaurant Brands posting an impressive 4% net restaurant growth and 9% consolidated comparable sales growth. 

The firm declared a dividend of $0.54 per share for the fourth quarter, maintaining an industry-leading dividend-paying record. QSR shares have grown 23% yearly as of Jan. 13. In the third quarter, the company delivered a system-wide sales growth of 14%, inclusive of 13% at Tim Hortons, 12% at Popeyes, and 14% at Burger King. 

Restaurant Brands has recently announced that it will declare its full year 2022 and fourth-quarter results on Feb. 14. At the time of writing, QSR stock provides a dividend yield of over 3.2% and a quarterly dividend payment of $0.54 per share. It is trading at the $65 level, which can grow as the company embarks on its expansion plans globally. 

Bottom line 

These two stocks are dividend-paying behemoths in the market, supported by profitable business models that spew out cash. Long-term investors would do well to at least add these stocks to the watch list, and set some price alerts for any buying opportunities moving forward.

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 Chris MacDonald has positions in Restaurant Brands International. The Motley Fool recommends Bank Of Nova Scotia and Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Investing

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

This is the Best AI Stock to Buy Right Now

Investors have a wide selection of AI stocks to choose from, although the best buy today is not the most…

Read more »

grow dividends
Tech Stocks

If This Fast-Rising Stock Isn’t Yet on Your Radar, it Should Be!

Here's why Constellation Software (TSX:CSU) remains a top TSX growth stock long-term investors ought to consider right now.

Read more »

Pile of Canadian dollar bills in various denominations
Stocks for Beginners

Up 94% in 2024! 3 Reasons Celestica Stock Is (Still) a Screaming Buy Today

Here are the top three reasons that could help Celestica stock continue soaring in the long run.

Read more »

Hands shaking over a business deal
Bank Stocks

National Bank to Buy Canadian Western Bank: What Investors Need to Know

National Bank of Canada (TSX:NA) is acquiring Canadian Western Bank (TSX:CWB) in a historic deal for Canadian banks.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

2 Magnificent Dividend Stocks I Plan to Add to My TFSA in June

Have you made your TFSA investments for June? If not, here are two dividend stocks you should consider adding for…

Read more »

Nuclear power station cooling tower
Dividend Stocks

Cameco Stock: An Excellent Uranium Play With Both Growth and Dividends

With clean energy demand continuing to grow, this stock might be a great long-term investment at current levels.

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Is it Too Late to Buy goeasy Stock?

Despite its monstrous gains, goeasy is a TSX dividend stock that trades at a compelling valuation in June 2024.

Read more »

Upwards momentum

A Bargain Stock That Looks Ready to Rip

Air Canada (TSX:AC) stock looks deeply discounted and ready to make up for lost time.

Read more »