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Highlights
- Investors constantly hunt for dividend-paying stocks with a proven business model that posts positive and higher profitability and returns ratios .
- They pay a passive income and motivate investors to hold on to these stocks.
- While several dividend-paying stocks trade at reasonably higher price bands, the five stocks listed here have a price less than C$ 10.
Investors constantly hunt for dividend-paying stocks with a proven business model that posts positive and higher profitability and returns ratios. They pay a passive income and motivate investors to hold on to these stocks. The issuing of regular dividends by companies is considered to be an added advantage for investors.
As the demand for these stocks is high, these are traded at higher price bands.
However, on the contrary, some dividend-paying stocks are trading at shockingly lower prices on the Toronto Stock Exchange (TSX). Let us explore five such stocks
- Aberdeen Asia-Pacific Income Investment Company Limited (TSX: FAP)
This dividend-paying financial service company serves in the asset management industry, intending to provide capital appreciation by investing in long-term debt. Aberdeen held a market cap of C$ 164.92 million and outstanding shares of 50.74 million on August 20, 2021.
The investors of the asset management company expect to earn the next monthly dividend of C$ 0.022 per share on August 31, 2021.
At market close, the stocks of Aberdeen Asia-Pacific were prices at C$ 3.25 apiece on August 20, 2021. On January 19, 2021, the stock price reached its 52- week high of C$ 3.36.
Over the past year, the stock price increased by nearly 10 per cent. However, on a year-to-date (YTD) basis, it dipped by 0.6 per cent.
Aberdeen held an earnings per share (EPS) of 0.34, price-to-earning (P/E) ratio of 9.5 and the return on equity (ROE) stood at 8.96 per cent.
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- Elysee Development Corp. (TSX:ELC)
The venture capital firm invests in equities of small and medium-sized enterprises. This investment firm focuses on investing in natural resources and the metal sector to provide capital appreciation. Elysee held a market cap of C$ 21.3 million on August 20, 2021.
This asset management company paid its latest semi-annual dividend of C$ 0.03 to its investors on March 3, 2021. The dividend yield was 7.89 per cent on August 20, 2021.
Stocks of Elysee closed at C$ 0.76 on August 20. On this day, it traded roughly 95 per cent above its 52-week low of C$ 0.39 (September 23, 2020).
Elysee Development Corp posted a net investment income of C$ 2.14 million in the second quarter of the fiscal year 2021, up from C$ 0.05 million in Q1 FY21. Its net earnings were C$ 2.04 million in Q2 FY21.
The management of this investment firm commented that it reduced its exposure to gold and silver, entering other sectors in Q2 FY21.
The P/E ratio of the investment firm stood at 3.6, the return on assets (ROA) was 33.34 per cent.
Also Read: 4 dividend-paying small-cap stocks to buy under $15
- Timbercreek Financial Corp (TSX: TF)
Timbercreek is a real estate lender catering to commercial real estate. The financial corporation provides financing options to real estate lenders. The market cap was C$ 776 million on August 20.
The financial corporation rolled out monthly dividends of C$ 0.058 per share to its investors on August 13, 2021. On average, the five-year dividend growth stood at 16.7 per cent.
The stock price of Timbercreek closed at C$ 9.57 on August 20. It traded over two per cent below its 52-week high of C$ 9.81 (August 17, 2021) on this day.
The stock price expanded by nearly 12 per cent in the last nine months and over the past year.
Timbercreek Financial posted a net investment income of C$ 23.4 million in Q2 FY21, down from C$ 24 million in Q2 FY20. Its distributable income was C$ 16.1 million in the same quarter.
On the valuation front, the EPS of this financial corporation stood at 0.52, ROE was 6.05 per cent, and its P/E ratio was 18.4.
Also Read: 5 dividend-paying stocks under $25 to buy right now
- Diversified Royalty Corp. (TSX:DIV)
This C$ 341 million market cap company earns its revenue from management fees and royalties. The firm is expected to pay its shareholders monthly dividends of C$ 0.018 on August 31, 2021. The dividend yield stood at 7.5 per cent on August 20.
On August 5, 2021, the stock price reached its 52-week high of C$ 2.95. At the market close on August 20, it was priced at C$ 2.8. On a QTD basis, the stock price expanded by nearly five per cent, and over the past year, it returned close to 50 per cent.
Diversified Royalty posted revenue of C$ 9.2 million in Q2 FY21, up by 45.8 per cent Year-Over-Year (YOY). Its distributable cash was C$ 6.8 million in the same quarter.
On the valuation front, this financial firm held an EPS of 0.05, debt-to-equity (D/E) ratio of 0.83, and ROE of 3.55 per cent.
- Newport Exploration Ltd (TSX:NWX)
This dividend-paying mining firm held a market cap of C$ 48.57 million and outstanding shares of 105.58 million on August 20. On this date, the company's EPS was 0.04, ROE stood at 69.74 per cent, and the P/B ratio was 5.75 per cent.
Newport acquires and produces oil and gas in Australia, while its mining project is located in Canada.
The shareholders of this mining company expect to earn quarterly dividends of C$ 0.02 per share on September 10, 2021. The dividend yield stood at 17.39 per cent (at the time of writing).
The stock price of NWX closed at C$ 0.46 on August 20. It traded roughly 35 per cent above its 52-week low of C$ 0.34 (May 6, 2021) on this day.
Over the past year, the stock price increased by nearly 28 per cent, but on a YTD basis, it dipped over 6 per cent.
Newport Exploration posted petroleum royalty income of C$ 2.62 million in Q3 FY21, down from C$ 2.95 in Q3 FY20. Its net income was C$ 1.57 million in the same quarter.
Bottom Line:
Stock prices fluctuate at regular intervals, providing investors a different entry point to trade each time. Well-informed investors must look at their risk to reward ratio before investing.
