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Highlights
- Bank of Montreal (TSX:BMO) is set to deliver a quarterly dividend of C$ 1.39 per share on August 26 (ex-dividend on July 29)
- Dollarama is scheduled to pay a quarterly dividend of C$ 0.055 on August 5 (ex-dividend on July 7)
- Dollarama's return on equity was more than 1244 per cent.
Canadian investors can be looking for TSX dividend stocks amid rising concerns that strict policy tightening to rein in inflation will bring about a recession. On Wednesday morning, June 29, the S&P/TSX composite index dwindled by 0.39 per cent to open at 19,147.43 at 9:45 am EST.
If you are exploring the market for passive income, dividend-payers like Bank of Montreal (TSX: BMO) and Dollarama (TSX: DOL) can be on your radar.
Bank of Montreal (TSX:BMO)
Bank of Montreal is among the top five banks in Canada, with a return on equity (ROE) of almost 21 per cent. The ROE measures the company's financial profitability by dividing its net profit by shareholders' equity. The Canadian lender saw its net profit climb to C$ 4.75 billion in Q2 FY2022, higher than C$ 1.3 billion in the previous year's quarter.
This Canadian bank is set for a quarterly dividend of C$ 1.39 per share (ex-dividend on July 29), due for payment on August 26.
BMO stock slumped by over three per cent in 12 months, and its Relative Strength Index (RSI) was 35.84 on June 27, according to the EODHD/Others data.
Dollarama Inc (TSX:DOL)
Consumer stocks like Dollarama could help investors play defensive and earn dividend income during a complex economic environment. Dollarama is scheduled to pay a quarterly dividend of C$ 0.055 on August 5 (ex-dividend on July 7).
Dollarama's profitability, reflected by its ROE, was more than 1244 per cent. A key factor to note is its debt-to-equity (D/E) ratio of 188.50, representing that the retail company finances mainly from debt rather than equity.
The Canadian discount retail stores operator reported a 12.4 per cent surge in its sales in Q1 FY2023 compared to Q1 2022, resulting in a year-over-year (YoY) rise of 32.4 per cent in diluted earnings in the latest quarter.
DOL stock gained by over 33 per cent in 12 months. As per EODHD/Others, DOL seems to be picking up the trend, with an RSI value of 64.01 on June 27.
Bottomline
Investors focused on expanding their portfolio income could explore the Bank of Montreal and Dollarama amid rising inflation and recession concerns. Though these stocks may reflect some impact of the current market volatility from time to time, these companies saw growing revenue and net profit in their latest quarter.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
