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Summary
- Market conditions play an important role when it comes to investments in the equity market.
- Presently, coronavirus cases are on the rise and that could trigger market volatility.
- In such a scenario, investors often look for dividend stocks with high yields.
Market conditions play an important role when it comes to investments in the equity market. Presently, coronavirus cases are on the rise and that could trigger market volatility. In such a scenario, investors often look for dividend stocks with high yields. Let’s look at two stocks from the Toronto Stock Exchange (TSX) that come with a dividend yield of more than nine per cent – Labrador Iron Ore Royalty Corporation (TSX:LIF) and Prime Dividend Corp. (TSX:PDV).
Labrador Iron Ore Royalty Corporation (TSX:LIF)
Current Stock Price: C$ 40.07
Labrador offers its investors an exposure to the iron ore market. The C$ 2.6-billion market cap company distributes a quarterly dividend of C$ 1 and its current dividend yield is 10.008 per cent.
In the past six months, the stock climbed by about 53 per cent. Holding a price-to-earnings (P/E) ratio of 11.3, Labrador scrip posts a one-year growth of about 107 per cent.
1-year chart of stock performance of Labrador Iron (Source: EODHD/Others/Thomson Reuters)
Labrador’s revenue stood at C$ 202.3 million in 2020, up from C$ 178.3 million in 2019. Its net income also climbed to C$ 227.2 million last year, up from C$ 205.3 million in 2019.
Prime Dividend Corp. (TSX:PDV)
Current Stock Price: C$ 6.9
Prime Dividend Corp invests in companies with diversified portfolios and a high dividend yield. It distributes a monthly dividend of C$ 0.056 and currently registers a dividend yield of 9.956 per cent.
The investment corporation’s year-to-date (YTD) growth is 18.8 per cent. In the last year, the scrip outperformed the TSX Composite 300 Index as it relatively grew by about 76 per cent and the index went up by 18 per cent.
1-year chart of stock performance of Prime Dividend Corp (Source: EODHD/Others/Thomson Reuters)
Prime Dividend Corp’s assets reduced to C$ 14.8 million in 2020, down from C$ 16.6 million in 2019, as per its full-year financial results. However, the company's cash liquidity increased to C$ 946,702 in 2020, up from C$ 507,899 in 2019.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
