5 best TSX dividend stocks to buy this September

August 31, 2021 06:06 AM EDT | By Shreya Biswas
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  • Many of the below-mentioned companies are scheduled to pay their dividends in September and the highest dividend yield stood at 18.23 per cent.
  • The highest ROE posted by one of these companies was 79.88 per cent.
  • These dividend-paying firms are sector agnostic.

Investors invest in stocks believing in their fundamentals and ability to fetch long-term returns. Investors also look for stock price appreciation, consistent dividends, and return ratios.

The highest dividend yield posted by one of these companies was 18.23, and the highest five-year dividend growth rate was 6.3 per cent. The stock price of North American Financial 15 Split Corp, one of the companies included here, posted a YTD return of nearly 82 per cent, whereas the S&P/TSX 60 Index delivered a YTD return of 19.21 per cent. 

On that note, let us look at 5 dividend stocks to buy in September.

1. Newport Exploration Ltd. (TSXV: NWX)

The C$ 47.51 million market cap company acquires and explores metals and related resources.  Newport Exploration produces oil and gas in Australia and has a mining project located in Canada.

The shareholders of Newport are expected to receive quarterly dividends of C$ 0.02 per share on September 10, 2021. The dividend yield was 17.78 per cent on August 30, 2021.

Newport Exploration Ltd. posted petroleum royalty of C$ 2.68 million in the third quarter of the fiscal year 2021. Its net income was C$ 1.57 million in the same period. As per the latest report, the oil production for the company decreased by 10 per cent Year-over-Year (YoY) from FY20.

Stocks of Newport closed at C$ 0.45 on August 27, 2021. On February 11, 2021, the stock price reached its 52-week high of C$ 0.6. Over the past year, the stock price increased by only 12.5 per cent.

As per the valuation metrics, the company held a price-to-earning (P/E) ratio of 11.3, and the return on asset (ROA) was 64.7 per cent.

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2. North American Financial 15 Split Corp (TSX: FFN)

The asset management company manages portfolios of large-cap Canadian and American companies. The asset classes invested in are equities. This dividend-paying asset management company is all set to issue its next set of monthly dividends of C$ 0.113 per share on September 10, 2021. The dividend yield was 18.53 per cent on August 31, 2021.

The stock price of North American Financial closed at C$ 7.46 on August 27, 2021. On this day, it traded nearly 197 per cent above its 52- week high of C$ 2.51 (October 30, 2020). The stock price of the company increased by a whopping 107 per cent over the past year.

On the valuation front, the company held an EPS of 4.45 and ROE of 79.88 per cent.

Also Read: 5 Canadian stocks paying the highest dividend in 2021

3. Fortis Inc. (TSX: FTS)

Fortis is a C$ 27.18 billion utility company transmitting and distributing electricity and gases to its customers. This dividend-paying company expects to pay its next set of quarterly dividends of C$ 0.505 on September 1, 2021. The average five-year dividend growth rate stands at 5.72 per cent.

On a year-to-date (YTD) basis, the company's stock price expanded by nearly 11 per cent and closed at C$ 57.7 on August 27, and traded nearly 18 per cent above its 52-week low of C$ 48.97 (February 26, 2021).

Fortis Inc. posted revenue of C$ 2.13 billion in Q2 FY21, up from C$ 2 billion in Q2 FY20. The company's goal is to reduce greenhouse gas emissions (GHG) to 75 per cent by 2035. The latest report highlights that the reduction in emission levels in 2020 stood at 15 per cent.

The company's price-to-book (P/B) ratio was 1.56, whereas its ROE was 7.12 per cent.

Also Read: 5 top dividend-paying metal stocks for 2021

4. Royal Bank of Canada (TSX: RY)

The C$ 188.51 billion market cap company is one of the largest banks in Canada, offering wealth management, commercial and corporate banking, and capital market products and services to its customer base.

Royal Bank of Canada posted a net income of C$ 4.3 billion in Q3 FY21, up 34 per cent YOY. Its Common Tier 1 (CET1) ratio was 13.6 per cent in the same quarter.

The bank is expected to pay its shareholders quarterly dividends of 1.08 per share on November 24, 2021. The average five-year dividend growth rate stands at 6.3 per cent.

The stock price of the bank closed at C$ 132.28 on August 27. It reached its 52-week high of C$ 134.23 on August 25, 2021. The stock price only increased by five per cent on a quarter-to-date (QTD) basis. However, over the past year, it climbed by nearly 31 per cent

The bank held an EPS of 10.62 and ROE of 18.61 from a valuation standpoint.

5. Emera Incorporated (TSX: EMA)

This energy company transmits and distributes gas and other energy services in North America and the Caribbean islands. Emera held outstanding shares of 256.45 million and a C$ 15.26 billion market cap (at the time of writing).

The company paid its latest quarterly dividend of C$ 0.637 on August 16, 2021, and its dividend yield was 4.28 per cent. The company’s investors enjoyed a P/E ratio of 24.5 and ROE of 7.6 per cent, and a debt-to-equity (D/E) ratio of 1.86.

Emera incurred a net loss of C$ 17 million in Q2 FY21.

The stock price of the company closed at C$ 59.51 on August 27. On August 20, 2021, it reached its 52-week high of C$ 60.26. The stock price increased by 11 per cent over the past year.

Bottom line:

The issue of consistent dividends by any company gives investors hope that the company is well-positioned. 


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