Dividend stocks are all well and good. We definitely want some passive income to look forward to, especially at a time when the TSX today remains down by 10% from 52-week highs.
However, we also want returns — returns that come from growth coming out of these dividend stocks. That’s why today I’m going to look at some solid companies to consider that are poised for steady growth in the near and long term.
TFI International
It can be hard to invest in a dividend stock in the shipping and logistics sector right now. This area of the market continues to go through less use as the market remains down. If people aren’t buying as much, then they’re not shipping as much either.
Yet there may be a turnaround coming for TFI International (TSX: TFII). After the transportation and logistics company soared upwards, by March it started to drop back. Shares are now down 14% in the last three months, as of writing.
The freight market remains weak, but there are “abundant” opportunities for acquisitions from TFI stock, according to analysts. The company continues to make both long- and short-term initiatives to improve its margins. This includes reducing costs in the short term, and improving density and network adjustment in the long run.
With the market weak, TFI stock could therefore start to edge in on acquisitions that are now at the best they’ve been in some time. Therefore, despite missing earnings estimates, analysts believe the company could do better than its $300 million target in revenue.
Shares of TFI stock is still up 44% in the last year, offering a 1.29% dividend yield as of writing.
Agnico Eagle Mines
Precious metals remain strong these days, with analysts raising the short-term price forecast for precious metals. In particular, gold prices have increased, as the United States dollar looks to weaken in the near term in 2023. Ongoing inflation issues will also help keep up the price of gold, making Agnico Eagle Mines (TSX: AEM) a solid choice these days.
Analysts have moved towards AEM stock thanks to being one of the more senior gold producers, while also offering lower political risk. Further, it has been growing its production profile, thanks in part to a full year of production for its Kirkland Lake assets.
Yet AEM stock remains in value territory, trading at just 9.87 times earnings as of writing. Furthermore, analysts believe there is quite a lot of upside. This comes as AEM stock remains up 4% in the last year, though down 7% year to date.
Therefore, the company could be a great buy over the next few years if you’re an investor looking to offset inflation — especially as it comes with a 3.15% dividend yield as of writing.
Bottom line
Combined these two investments will certainly provide investors with both long-term growth as well as dividend income that could certainly help during this downturn. Even if inflation levels and interest rates remain raised for the next year. You’ll be happy to see passive income coming your way from these two dividend stocks.
