The coronation of King Charles in the U.K. on May 6, 2023 was a once-in-a-generation ceremony. People around the world wondered, how much wealth does the new monarch have? According to the Guardian, besides real estate, jewels, and horses, he probably has a US$180 million investment in stocks.
Regular investors can’t match the crown’s significant wealth but can build a solid portfolio of Canadian stocks with serious royalty status. Exco Technologies Limited (TSX:XTC), Savaria Corporation (TSX:SIS), and Canadian Tire (TSX:CTC.A) belong to the elite group of dividend aristocrats on the TSX. The trio has, between them, a dividend growth streak of 10 to 17 years.
Solid growth
Another earnings season is upon us, and Exco investors should be happy with the financial results in the Q2 and first half of fiscal 2023. In the three quarters that ended March 31, 2023, sales and net income rose 30.3% and 23.3% to $155.5 million and $6.29 million, respectively, versus Q2 fiscal 2022.
In six months, these amounts increased by 33.7% and 38% year over year to $294.6 million and $10.81 million, respectively. If you invest today, the share price is $7.86 (+3.53% year to date), while the dividend yield is 5.24%. The $307 million company supplies innovative technologies to customers in the die-cast, extrusion, and automotive industries.
Darren Kirk, Exco’s President and CEO, notes the progress of management’s growth initiatives and expects to see continued gains through the quarters ahead despite challenging global macro conditions. He adds that investments in capital assets would suppress near-term profitability but should eventually increase scale over a multi-year horizon.
Increased profitability
Savaria is known for its accessibility solutions for the physically challenged and boasts a comprehensive product line of mobility equipment. The $1.1 billion industry leader also provides pressure management products for the medical market. As of this writing, the industrial stock outperforms the broader market year to date, +22.86% versus +5.96%. At $17 per share, the dividend offer is 3.11%.
In Q1 2023, revenue and net earnings increased 15.3% and 12.9% to $211.6 million and $6.03 million, respectively, versus Q1 2022. According to its President and CEO, Marcel Bourassa, adjusted EBITDA rose 27.8% compared to last year, while organic growth was 13.5%. He adds, “We are off to a beautiful start this year with our first quarter results delivering both sales growth and increased profitability.”
Unrivalled advantage
Canadian Tire continues to display resiliency in the stock market. At $169.14 per share, the positive gain thus far in 2023 is nearly 22%. You can also partake in the 4.1% dividend. Despite the 80.3% year-over-year drop in net income in Q1 2023 to $42.8 million, the iconic $10.6 billion retailer is a solid investment prospect.
Its President and CEO, Greg Hicks, said, “Our unrivalled competitive advantage lies in our deep understanding of Canadians, and in the context of a challenging macroeconomic environment, we intend to fully leverage this strength to maximize returns.” He remains confident in Canadian Tire’s ability to deliver long-term shareholder returns and genuine value to customers.
Royal treatment
Investors can g the royalty treatment without the “Your Royal Highness” title. The key is to own a stock portfolio of three outstanding Canadian dividend aristocrats.
