A Trio of Canadian Dividend Aristocrats Worth a Closer Look

These three Canadian Dividend Aristocrats still offer a strong deal for long-term investors hoping to lock in high yields and strong returns.

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There have been a number of Canadian Dividend Aristocrats that continue to trade poorly, and, frankly, I’m not sure why! Long-term investors should be seeing this downturn as an opportunity — a sale that you would be super glad to happen at your favourite store. Yet here are these top stocks trading downwards, and hardly anyone is picking them up.

So, seize this moment! These three Canadian Dividend Aristocrats continue to trade in value territory. Further, these top stocks continue to increase their dividend again and again, hence the Aristocrat status. So, grab these three while they’re still offering a major deal.

Aecon Group

Shares of Aecon Group (TSX:ARE) still trade down about 14% in the last year as of writing, falling significantly recently as well. This came even as the company beat out earnings estimates, though perhaps not as high as investors had hoped, leading to a drop of 14% in just a day during earnings.

This comes down to the uncertainty around free cash flow, in the words of one analyst. Further, the company announced a loss of $9.4 million and blamed it on inflation. However, the analyst goes on to state these are short-term issues, and, therefore, long-term investors may be well rewarded in the long run.

Aecon stock continues to hold a large backlog of projects that it continues to chip away at. It offers a 5.87% dividend yield as well, which has risen by 48% in the last five years alone.

Fiera stock

Another strong choice for long-term investors to take advantage of is Fiera Capital (TSX:FSZ). This Dividend Aristocrat also offers an incredibly high 11.57% dividend yield for shareholders right now. Yet those shares are down a whopping 24% as of writing.

This comes with the territory of being a finance manager during a time of economic uncertainty. This is what continues to drive the share price lower, according to analysts. The next year should continue to be difficult, and Fiera stock will have to prove that it can improve sales and hold steady margins in that time.

That being said, analysts went on to state the company is well diversified. So, in the short term, there could be issues. In the long term, however, investors should look to the company as a steal that could certainly pay out both returns and dividends in bulk in the near future.

Great-West Lifeco

Finally, the last of the Canadian Dividend Aristocrats I’ll cover is Great-West Lifeco (TSX:GWO), an insurance company that holds some of the largest names in Canada. Yet again, higher interest rates and inflation have led to poorer outcomes for GWO stock. Even with the amount of global diversification it offers.

In fact, recent share volatility hasn’t stopped GWO stock from making more acquisitions. The company recently purchased Investment Planning Counsel for $575 million, one of several it’s made over recent years to continue its global expansion plans. The company continues to work towards being a heavy hitter in the wealth management industry, which has long been a lucrative revenue stream for many in similar industries.

So, while the Canadian business takes up 37% of its adjusted earnings, it continues to see income from the U.S. at 20%, Europe at 25%, and business accounts at 17%. And with all this growth, it shouldn’t be long until this Dividend Aristocrat offering a 5.4% dividend yield becomes a global leader. Shares are now up 11.45% in the last year yet still trade at 11.19 times earnings.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fiera Capital. The Motley Fool has a disclosure policy.

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