10 hot Canadian stocks to buy in August

Some Canadian stocks have been a hot favorite with investors and have hight trading volumes. Many of these companies have navigated the pandemic remarkably well and recently paid dividends or are expected to roll out fresh dividends soon. Some have good return on assets (ROA) and return on equity (ROE) as compared to the peer companies.

Let us look at some of the top 10 hot stocks for August:

1. Telus Corporation (TSX: T)

Telus Corporation is one of the leading wireless service providers in Canada. It also provides internet, telephone, and landline services that cater to industries like agriculture, health, and security. 

The stock price closed C$ 27.71 on July 30, 2021 and is trading nearly 1 percent below its 52-week high of C$ 28.30 (July 4, 2021). The stock price climbed up only 20 per cent in the past year.

In the second quarter of fiscal 2021, the operating revenue and other income stood at C$ 4,111 million, up 10.3 per cent year-over-year (YoY). The net income for the quarter was C$ 344 million.

The company announced a quarterly dividend of C$ 0.316 to be paid on October 10, 2021, yielding 4.56 per cent.

2. Royal Bank of Canada (TSX: RY)

Royal Bank of Canada is one of the leading banks in Cana with a diversified business model offering wealth management, personal banking, and commercial banking services.

The stock closed at C$125.7, trading 38 per cent above its 52-week low of C$ 90.7 and has spiked up nearly 32 per cent in the last nine months.

The bank posted a revenue of C$ 11,445 million for the quarter ending April 30, 2021, down from C$ 10,495 million a year ago. The net income for the quarter stood at C$ 4,014 million.

The company expects to roll out the next set of quarterly dividends of C$ 1.08 apiece on August 24, 2021. The dividends yield is 3.42 per cent. The company holds an earning per share  (EPS) of 9.85.

3. Timbercreek Financial Corp (TSX: TF)

Timbercreek Financial Corp (TF) is one of the top dividend-paying stocks on the TSX. The C$ 786.80-million company is engaged in the business of commercial real estate lending. It also provides customizable financing to real estate investors.

The investors expect the next monthly dividends of C$ 0.058 to be paid on August 13, 2021. The dividends have been historically yielding 7.11 per cent, and the average five-year dividend growth rate has been 12.39. The stock is currently trading at C$9.59.  The EPS of the company stands at 0.49.

The recent quarterly report highlighted net Investable Income of C$ 22.4 million in Q1 FY2021 compared to a net investable income of C$ 24.0 million in Q1 FY2020. It also delivered an income payout ratio of 91.2 per cent.

4. Nuvei Corporation (TSX:NVEI)

The fintech company provides payment solutions ranging from mobile payments, online payments, and in-store payments. It has a market cap of C$ 14.97 billion

The stock closed at C$ 102.49 on July 30, 2021 and is trading nearly 3 per cent below its 52 week high if C$ 105.98 (July 7, 2021).

Nuvei posted volume growth of 132 per cent YoY, revenue growth of 80 per cent YoY. The company added new alternate multiple payment methods in several countries to reach a count of 470 at the end of the quarter

The stock holds a price-to-book (P/B) value of 7.84 and a debt-to-equity ratio (D/E) ratio of 0.15.

5. Constellation Software Inc. (TSX: CSU)

Constellation Software, another leasing Canadian software company, develops and customizes private and public sector undertakings. It operates in Australia, North and South America.

The market cap stands at C$ 42.35 billion and stock closed their day’s trading at C$ 1,998.43 apiece on July 30, 2021.

CSU stock returned nearly 26 per cent in the past year.

The revenue in Q1 FY2021 increased by 23 per cent YoY to reach US$ 1,176 million from US$ 953 million in Q1 FY2020, including an organic growth of 6 per cent. However, the net loss at the end of the quarter was US$ 175 million.

The company paid a recent quarterly dividend of US$ 1.00 on July 10, 2021. The historical dividend yield was 0.24 per cent.

The company stands on an EPS of 20.58 and return on assets (ROA) of 7.51 per cent.

6. Dollarama Inc (TSX: DOL)

Dollarama operates discount retail stores in Canada, providing goods and merchandise at a lower fixed price. The stores are located in both small and big towns. The company is valued at C$ 17.93 billion and has 304.71 million outstanding shares.

The stock closed at C$ 58.75 apiece on July 30, 2021, up 26 per cent in the last nine months. It has advanced by 20 per cent in the past year.

As per the latest quarterly report, sales increased by 13 per cent YOY to reach C$ 954.2 million in Q1 FY2022.

The comparable sales growth increased by 5.8 per cent YoY, and the EBITDA grew by 16.1 per cent YoY to reach C$ 248.2 million at the end of the quarter.

A quarterly dividend of C$ 0.05 is expected to be paid on August 08, 2021. The 5-year dividend growth rate stands at 7.88.

The company posted an ROE of 791.26 per cent and an EPS of 1.91.

7. Enghouse Systems Limited (TSX: ENGH)

A Canadian technology company, Enghouse Systems Limited (ENGH), provides software services to client base located in Canada, UK, Sweden, Germany, India, Hong Kong, and other countries. The scrips closed at C$ 56.31 apiece on July 30, 2021 and returned only 3 per cent quarter-to-date (QTD).

The technology firm posted total revenue of C$ 117.3 million in Q2 FY2021, which decreased from C$ 140.9 million in Q2 FY2020. The management cited that the decrease in revenue was due to the pandemic affecting business operations.

The company expects to issue quarterly dividends of C$ 0.16 apiece on August 31, 2021, while the five-year dividend growth rate has been 29.89.

The company holds an EPS of 1.74 and P/E ratio of 32.40.

8. Cargojet Inc. (TSX: CJT)

Carrgojet Inc has a market cap of C$ 3.37 billion and 17.32 million outstanding shares. The company is a domestic air cargo operator operating across Canada.

The stock is trading nearly 22 per cent below its 52-week high of C$ 250.01 (November 09, 2020) and trading nearly 29 per cent above its 52- week low of C$ 150.58 (July 28, 2020). It closed its day;s trading at C$ 194.20 on July 30, 2021

The stock triggered an upward jump of nearly 17 per cent in the past year.

The air cargo company posted revenue of C$ 160.3 million in Q1 FY2021, which increased from C$ 123 million in Q1 FY2020.

It paid quarterly dividends of C$ 0.26 on July 05, 2021 to the investors. The dividends had yield of 0.53 per cent

9. Shopify Inc. (TSX: SHOP)

Canada’s leading e-commerce company has a market cap of C$ 240.13 billion and 24.76 million outstanding shares. The stock price has jumped up by nearly 54 per cent in the last nine months, and is up 39 per cent in the past year.

The stock is trading nearly 5 per cent below its 52-week high of C$ 2,014.35 (July 22, 2021) and has closed at C$ 1,873 on July 30, 2021.

The total revenue posted was US$ 1,194 million in Q2 FY 2021, up 57 per cent YoY. The net income stood at US$ 879.1 million.

The e-commerce company stands with an EPS of 24.90, P/B ratio of 18.74 and ROE of 32.29 per cent

10. Laurentian Bank of Canada (TSX: LB)

The banking stock has a market cap of C$ 1.84 billion. Laurentian Bank operates in both Canada and US providing services like personal banking, real estate, and commercial financing.

The stock was trading at C$ 42.24, nearly 6 per cent below its 52-week high of C$ 45.13 (June 02, 2021). The stock in the past year rocketed by 59 per cent.

The bank paid a quarterly dividend of C$ 0.40 apiece on August 01, 2021. The dividend yield is 3.77 per cent.

The EPS stands at 3.67, P/E ratio of 11.60 and ROE of 6.63 per cent.