When it comes to investing, many Canadian investors might consider stocks from more of a short-term outlook. Ones that can give you that flood of cash before you sell and swim around in that pile of money you just made.
But news flash: that’s not investing, that’s gambling. And it comes with the same risks as if you took all that cash and poured it into a casino. That’s why companies that offer two things are an even better option: stability and income. Today, we’re going to look at two dividend stocks that offer just that, with stable outlooks, strong earnings, and dividends that keep on coming.
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TFI stock
First up, TFI International (TSX: TFII). This is one of those companies you might not know, but once you read about them, they will start popping up everywhere. Why? Because so many of the company’s trucks flood the highways you drive on a regular basis.
TFI is a strong option for those looking for stable income from this stable trucking and logistics business, and earnings recently proved that. The dividend stock reported strong cash generation with operating cash flow of $1.1 billion. This certainly helps dividend income, as that cash flow directly supports dividend payouts. The dividend has a current yield of 1.9% at writing.
Now it’s not perfect. The same earnings report reported revenue and earnings that saw year-over-year declines as profit challenges remain. Furthermore, the dividend stock has high leverage with a debt-to-equity (D/E) ratio of 113% at writing. This poses potential risks amidst all this market volatility. Yet if you’re looking for value, now could therefore be the best time to jump in on the recovery.
Nutrien
Next up, we have another winner, Nutrien (TSX: NTR). If you like food, then Nutrien stock is one of the best investments money can buy. The company benefits from strong global demand for fertilizers and supply disruptions. And that performance isn’t going away any time soon.
In fact, this dividend stock has a bit of a storied past. After surging to almost $150 per share with sanctions against Russian potash, Nutrien stock then declined after demand returned to normalcy. But that just shows the speculative nature of the market. For instance, recent earnings continued to show support for the growth of this strong stock.
During its quarterly earnings announcement, Nutrien reported significant net earnings and earnings before interest, taxes, depreciation and amortization (EBITDA) at $15.5 billion in revenue for the first half of this year. Furthermore, the dividend stock optimized its operations and capital expenditures for even more growth, while maintaining its leadership position in crop inputs. And with a 3.9% dividend yield at writing, investors have a reason to buy in now.
Bottom line
If you’re looking for two dividend stocks that have a stellar outlook, these two certainly fit the bill. TFI stock gives you access to the growing logistics and trucking industry – and at a valuable share price. Nutrien stock provides you with the building blocks of crop growth, an industry that’s certainly not disappearing any time soon. If you were to put $5,000 towards each dividend stock today, investors would immediately gain annual income of $282.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (per share, annual) | TOTAL PAYOUT (annual) | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TFII | $130.31 | 38 | $2.47 | $93.86 | Quarterly | $4,951.78 |
| NTR | $78.74 | 63 | $3.00 | $189.00 | Quarterly | $4,960.62 |
So stop trying to find that next penny or meme stock and shoot to the moon. Instead, look right here on earth where there are already massive opportunities to grab.
