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Amid the coronavirus pandemic, stock markets are witnessing high volatility and uncertain performance pressure. In such times, market fundamentals show a correct path to pick sustainable stocks. Investors can explore stocks with high return on equity (ROE) to validate their low liabilities and good growth.
We will discuss a set of three diversified stocks from communication services, consumer retail, and utilities.
Let us look at the following ROE leaders’ performances:
Yellow Pages Limited (TSX:Y)
The company offers media and marketing services across Canada, supporting small and medium-sized enterprises (SMEs) to connect with potential customers.
The stock has an impressive RoE of 928 per cent, along with earnings per share (EPS) of C$ 2.28. The media stock has surpassed the benchmark index in one year, with a return of 53.6 per cent.
Yellow Pages distributes a dividend of C$ 0.11 apiece quarterly and holds a dividend yield of 3.65 per cent. It claimed to go debt-free by June 1, 2021, as per the company’s filing.
Dollarama Inc. (TSX:DOL)
One of the leading consumer retailers of Canada has been gathering momentum on the back of continuing stay-home order.
Its ROE stands at 459 per cent, and its return on assets is up 14.45 per cent. The large cap grocery stock offers EPS of C$ 1.82.
Dollarama offers quarterly dividend per common share of C$ 0.05, with a three-year average of 7.18 per cent. Its one-year growth has increased by 34.28 per cent and surpassed its peers’ performances.
The grocery stock has swelled by almost 12 per cent this year, led by the last one-month surge of 13 per cent due to renewed lockdown.
The company recorded 6.3 per cent sales growth in the fiscal year 2021 and opened 65 new stores under its banner.
Image Source: ©Kalkine Group 2021
Brookfield Infrastructure Corporation (TSX:BIPC)
The utility and data infrastructure investor operates through its subsidiaries worldwide. It has an eye-watering ROE of 3,413.62 per cent, with a market cap of C$ 4.25 billion.
The company paid US$ 0.50 per common share as a quarterly dividend in the last month. Its dividend yield is 2.76 per cent.
It is up over 74 per cent in one year and gained almost 7 per cent in the past one month.
Brookfield Infra posted a profit of U$ 394 million in 2020, up against a net income of U$ 233 million in 2019.
