The market looks like it might actually sustain a continued recovery, if history has anything to say about it. These days, both the TSX and S&P 500 are back at or near all-time highs. Based on historical performance, this usually happens within a few years of hitting recession or economic downturn lows. So, therefore, there is very little time to get back in on dividend stocks offering a deal.
With the market starting to show signs of recovery, it’s time to find companies that are going to surge in the near future. For that, we’ll look at three dividend stocks you can buy now for huge returns, with dividends, while you wait.
Brookfield Infrastructure
One area that will be around pretty much forever is infrastructure. Whether it’s building the roads we drive on or the telecommunications towers we need to communicate, infrastructure makes up our daily lives. So investing in a company like Brookfield Infrastructure Partners LP (TSX:BIP.UN) just makes sense.
BIP stock remains incredibly attractive for 2024, according to analysts. The company is set to outperform the rest of the infrastructure market, offering up a strong risk-versus-reward scenario. The stock should see double-digit funds from operation (FFO) per unit growth during this year. What’s more, it offers a huge acquisition pipeline, with plenty of backing to hold a competitive advantage.
Shares of BIP stock are still down 12% in the last year, offering a substantial 5% dividend yield as of writing. You can look forward to a 25% increase in share price once the dividend stock reaches 52-week highs once more.
Chemtrade
Another strong option for the future is industrial products, specifically methanol and nitrogen. There continues to be a huge demand to improve fertilizer performance and farmer economics. Which is why companies like Chemtrade Logistics Income Fund (TSX:CHE.UN) continue to be an excellent choice.
As nitrogen, potash and phosphate prices continue to move higher, Chemtrade should continue to see its shares rise higher as well. Higher caustic pricing in particular will be beneficial for Chemtrade stock, making it an outperformer within the chemical company sector.
Shares of Chemtrade stock are still down by 15% in the last year, offering up a 20% potential upside to reach 52-week highs. You can also grab an incredibly high dividend yield at 7.07% as of writing as the dividend stock continues to climb.
Minto REIT
Finally, another of the dividend stocks that investors should consider these days is Minto Apartment REIT (TSX:MI.UN). Minto real estate investment trust (REIT) offers the basics. REITs went through quite the drop over the last few years. However, apartment REITs are due for a quicker rebound, even with higher interest rates and inflation.
The company is using net proceeds of $69 million from two older Ottawa asset sales to raise capital to purchase two more projects. This, coupled with an acceleration of its housing projects by the government, provides an excellent time to jump in while the stock remains affordable.
Shares of Minto REIT are now up 5% in the last year, yet still offer a 7% potential upside to reach 52-week highs. Meanwhile, you can still grab hold of a 3.1% dividend yield from this dividend stock.
