The S&P/TSX Composite Index fell 21 points on Monday, May 1. Some of the worst-performing sectors included energy, base metals, health care, and financials. Investors who jumped on discounts in the late winter season have been rewarded by a hot market in the spring. However, the market is showing signs of overheating as we enter the crucial month of May.
Today, I want to look at three income stocks that offer you a shot at creating a fortune by the end of this decade. Let’s dive in!
This undervalued income stock offers a mouth-watering monthly dividend payout
Northwest Healthcare REIT (TSX:NWH.UN) is a real estate investment trust (REIT) that owns and operates a global portfolio of high-quality healthcare properties. The essential nature of this REIT’s business and the growth we have seen in the healthcare space has made this one of my favourite income stock targets. However, Northwest Healthcare has struggled in recent months. Its shares have dropped 14% in 2023 as of close on May 1. The stock is down 36% year over year.
This company unveiled its final batch of fiscal 2022 earnings on March 31, 2023. In 2022, Northwest completed over $1.1 billion in acquisitions. The big news was its entry into the United States, the world’s largest healthcare market. For the full year, Northwest posted adjusted funds from operations (AFFO) of $172 million — down from $178 million in the prior year.
Shares of this income stock currently possess a price-to-earnings (P/E) ratio of 30, which puts this REIT in solid value territory compared to its industry peers. Moreover, it offers a monthly distribution of $0.067 per share. That represents a monster 9.8% yield. This remains one of my favourite income stocks on the TSX.
Don’t sleep on this energy-focused income stock
Keyera (TSX: KEY) is a Calgary-based company that is engaged in the gathering and processing of natural gas; and transportation, storage, and marketing of natural gas liquids in Canada and the United States. This income stock has increased 4.6% month over month. Meanwhile, its shares have climbed 10% so far in 2023.
Investors can expect to see Keyera’s in the first half of this month. In fiscal 2022, the company achieved record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.03 billion — up from $956 million in fiscal 2021. Meanwhile, distributable cash flow (DCF) fell to $654 million compared to $669 million in the previous year.
This income stock possesses an attractive P/E ratio of 21 at the time of this writing. Keyera last paid out a monthly dividend of $0.16 per share, which represents a tasty 6% yield.
One more cheap dividend stock to own this decade
Mullen Group (TSX: MTL) is the third and final income stock I’d look to snatch up in the opening week of May. This Alberta-based company provides a range of trucking and logistics services in Canada and the United States. Shares of this income stock have increased 4.2% over the past month. The stock is up 6.5% in the year-to-date period.
This company achieved record revenues of $2.0 billion in fiscal 2022 — up 35% over fiscal 2021. Mullen Group achieved this growth on the back of increases in fuel surcharge revenue and general rate increases that were negotiated in early 2022. It also posted record adjusted EBITDA of $329 million and record net income of $158 million.
In the first quarter of fiscal 2023, this company continued its record-breaking ways. Mullen Group posted record first-quarter revenue of $497 million — up 9% over the previous year. Meanwhile, net income surged 93% to $31.7 million. This income stock last had a very favourable P/E ratio of 8.7. Moreover, it offers a monthly distribution of $0.06 per share, representing a solid 4.6% yield.
