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In this article: 13 Canadian high-growth dividend stocks to invest in. Check out our article for an overview of these stocks. Five Canadian high-growth dividend stocks to invest in.
Dividend investing took a backseat in 2023 as unending optimism spread through the market thanks to an AI-driven rally that continued to push tech stocks higher and higher, defying recession predictions and inflation-related concerns. . But can the 2023 bull market continue into 2024? In its 2024 outlook report, titled “The Year That Won’t End,” experts say that at least 2024 will be the year to come as consumers lose their savings and the effects of interest rate hikes become visible. It said it expected growth to slow in the first half of the year.
“Inflation, interest rates, and earnings are key to the interconnectedness of stock price fluctuations, and with inflation levels continuing to exceed the Fed’s price stability target, a period of rising interest rates is here to stay. Rising interest rates will increase competition from bond investments. and valuation metrics such as stock prices come under pressure.” Returns (stock investors are willing to pay for realized or future profits) Additional cautionary factors likely to weigh on stock returns in the new year These include narrow leadership in equity sector performance in 2023 and the possibility of weaker economic and corporate performance. Earnings pressures that will emerge in 2024, already high prices for technology companies, and geopolitical issues such as the ongoing conflict between Russia/Ukraine and Israel/Hamas and tensions between the US and China. ”
The pendulum is swinging in favor of dividend stocks.
The latest inflation report showed that the Fed’s long fight against inflation may not be over after all, and it’s not out of the woods yet. Dividend stocks like Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo Inc. (NASDAQ:PEP) due to geopolitical risks, declining household savings, and persistent inflation has become relevant again. Matt Powers, managing partner at Powers Advisory Group, advised investors on CNBC earlier this month to put their money into high-paying companies with a strong track record of dividend growth. “The pendulum is swinging” in favor of dividend stocks, he said. .
methodology In this article, we used manual research and a stock screening tool to select Canadian dividend stocks that have reported strong sales growth over the past five years and recent quarters. For each stock, we mentioned hedge fund sentiment. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That’s why we pay close attention to this often ignored metric.
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13. Vox Royalty Corporation (NASDAQ:VOXR)
Number of hedge fund investors:Five
With a dividend yield of over 2% and strong earnings growth, VOX Royalty Corporation (NASDAQ:VOXR) ranks #13 on our list of Canadian high-growth dividend stocks to invest in.
At the end of Q3 2023, 5 hedge funds out of 910 funds tracked by Insider Monkey held shares in VOX Royalty Corporation (NASDAQ:VOXR).
12. Centerra Gold Inc. (NYSE:CGAU)
Number of hedge fund investors:Ten
Centerra Gold Inc. (NYSE:CGAU) ranks #12 on our list of Canadian high-growth dividend stocks. In November, Desjardins gave the stock a buy rating and set a price target of C$12. Financial services companies praised Centerra Gold Inc’s (NYSE:CGAU) strong cash flow.
At the end of Q3 2023, 10 hedge funds out of 910 hedge funds tracked by Insider Monkey held shares in Centerra Gold Inc. (NYSE:CGAU). The largest hedge fund stakeholder in Centerra Gold Inc. (NYSE:CGAU) during this period was Ryan Schedler and Bradley Shisler’s Condire Investors, which owns $46 million in Centerra Gold Inc. (NYSE:CGAU) stock. did.
Heartland Value Fund says this about Centerra Gold Inc. (NYSE:CGAU) in its Q4 2023 Investor Letter:
“At the beginning of last year, we emphasized that: Centerra Gold Co., Ltd. (NYSE:CGAU), a gold and copper producer. Given the Federal Reserve’s recent shift to accommodative monetary policy, we thought this refresh of an undervalued hard asset is timely.
Centerra continues to make strides in increasing production while reducing costs. During the third quarter, the Oxut mine was restarted, and his earnings per share were $0.20, while wasting more than $100 million in cash flow. Centerra remains debt-free and cash has soared to $492 million ($2.28 per share). The new management team is focused on optimizing the company’s diversified asset portfolio, including strategies to increase the value of the molybdenum business for eventual sale. Centerra has an excellent balance sheet and has the resources to fund an aggressive exploration program in North America, pay a 3.3% dividend, and embark on a repurchase of his 8.5% of outstanding shares. Masu.
Trading at approximately 60% below stated book value, NAV, and less than 3x EV/EBITDA, we believe Centerra remains an excellent small-cap value. ”
11. Bank of Nova Scotia (NYSE:BNS)
Number of hedge fund investors:11
With a dividend yield of 6.8% as of January 11, Bank of Nova Scotia (NYSE:BNS) is a dividend stock to watch. Over the past 10 years, Bank of Nova Scotia (NYSE: BNS) has been increasing its dividend at a CAGR of 5.75%.
In November, Bank of Nova Scotia (NYSE:BNS) announced its fourth quarter results. Adjusted EPS for the quarter was C$1.26. Revenue for the period increased 8.9% year-on-year to C$8.31 billion.
Like BNS, hedge funds have piled money into Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo Inc. (NASDAQ:PEP).
10. Manulife Financial Corporation (NYSE:MFC)
Number of hedge fund investors:13
Canadian insurance company Manulife Financial Corp. (NYSE:MFC) has a dividend yield of approximately 5% as of January 11th. Manulife Financial Corp. (NYSE:MFC) had a strong third quarter in November, thanks to strong growth and strong performance in its Asian division. Global Wealth and Asset Management Division.
At the end of Q3 2023, 13 hedge funds out of 910 hedge funds tracked by Insider Monkey held shares in Manulife Financial Corp. (NYSE:MFC). The most important stakeholder in Manulife Financial Corp. (NYSE:MFC) during this period was Joseph Schildevan’s Galibier Capital Management, which owns $37.4 million in Manulife Financial Corp. (NYSE:MFC) stock. was.
9. Toronto-Dominion Bank (NYSE:TD)
Number of hedge fund investors:14
Toronto-Dominion Bank (NYSE:TD) is a high dividend stock. As of January 11, the stock’s dividend yield is over 4.8%. Toronto-Dominion Bank (NYSE:TD) increased its dividend by 6.3% in November.
At the end of Q3 2023, 14 hedge funds out of 910 hedge funds tracked by Insider Monkey held Toronto-Dominion Bank (NYSE:TD) stock. The most notable hedge fund stakeholder in Toronto-Dominion Bank (NYSE:TD) is Joseph Schildevan’s Galibier Capital Management, which owns $28 million in Toronto-Dominion Bank (NYSE:TD) stock. there were.
8. Open Text, Inc. (NASDAQ:OTEX)
Number of hedge fund investors:16
Shares of enterprise software company OpenText Corporation (NASDAQ:OTEX) have increased about 31% over the past year. In November, Open Text Corp (NASDAQ:OTEX) announced a quarterly dividend of $0.25 per share. The future dividend yield was 2.9%. The dividend was paid on December 20th.
At the end of Q3 2023, 16 hedge funds tracked by Insider Monkey held shares in Open Text Corp (NASDAQ:OTEX). The most notable hedge fund stakeholder in Open Text Corp. (NASDAQ:OTEX) during this period was Harris Associates of Natixis Global Asset Management, which owns $404 million in Open Text Corp. (NASDAQ:OTEX) stock.
FPA Crescent Fund commented on Open Text Corporation (NASDAQ:OTEX) in its Q2 2023 investor letter:
“Open Text Co., Ltd. (NASDAQ:OTEX)t was held for a relatively short period of time compared to typical periods. We were attracted to this Canadian-based enterprise software provider for its stable revenue stream. More than 80% of his Open Text revenue is recurring revenue, which has helped him achieve his attractive EBITDA margin in the mid-30s. We thought the business had a strong customer base, including his 97 of the world’s 100 largest companies. Because we acquired the company at a low-double-digit multiple of after-tax free cash flow, we continue to invest in dividends, share buybacks, and small bolt-on acquisitions to continue to grow this business over the years. I expected to own a company. Unfortunately, and surprisingly, while we owned the stock, Open Text announced a relatively large acquisition in the form of UK-based Micro Focus. Knowing our goals well, we were reluctant to increase both the assets and the debt on our balance sheet by financing the purchase, so rather than rewrite our investment thesis, we decided to exit stage left. Selected. ”
7. Canadian Imperial Bank of Commerce (NYSE:CM)
Number of hedge fund investors:17
With a 5.8% dividend yield and strong earnings growth, Imperial Bank of Commerce (NYSE:CM) ranks No. 7 on our list of Canadian high-growth dividend stocks to buy now. In November, Canadian Imperial Bank of Commerce (NYSE:CM) increased its dividend by 3.4%.
That same month, Canadian Imperial Bank of Commerce (NYSE:CM) announced its fiscal fourth quarter results. Adjusted EPS for the period was C$1.57. Revenue for the quarter rose 8.3% year over year to C$5.84 billion.
6. B2Gold Corp (NYSE:BTG)
Number of hedge fund investors:19
Canadian-based mining company B2Gold Corp (NYSE:BTG) is one of the popular dividend stocks among hedge funds. A total of 19 hedge funds tracked by Insider Monkey reportedly own shares in his B2Gold Corp (NYSE: BTG). The largest hedge fund stakeholder in B2Gold Corp (NYSE: BTG) was John Overdeck and his Two Sigma Advisors, David Siegel, who owned $34.3 million in B2Gold Corp (NYSE: BTG) stock. In addition to BTG, hedge funds are also flocking to Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo Inc. (NASDAQ:PEP).
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Disclosure. none. 13 Canadian high-growth dividend stocks to invest in Originally published on Insider Monkey.
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