3 Canadian mid-cap stock to buy in Q4 2021

Highlights

  • Companies that fall under the category of mid-caps stocks consist of those which have a market capitalization of more than C$ 2 billion but less that C$ 10 billion.
  • A C$ 3.5-billion market cap Canadian bank paid its shareholders a quarterly dividend of C$ 0.29 against each share on September 23 this year.
  • A Calgary, Alberta-based energy infrastructure is scheduled to pay its next monthly dividend of C$ 0.083 on November 15, 2021.

If you are an investor who finds large-cap stocks way too expensive and small-cap stocks a little too risky, there may be a middle path for you.

Companies that fall under the category of mid-caps stocks consist of those which have a market capitalization of more than C$ 2 billion but less that C$ 10 billion. Therefore, they can be less risky than small or penny stocks, while also being well within your budget.

So, let’s look at a few Canadian mid-cap stocks that you can add to your profile in the last quarter of 2021.

  1. Canadian Western Bank (TSX: CWB)

The C$ 3.5-billion market cap bank paid its shareholders a quarterly dividend of C$ 0.29 against each share on September 23 this year. This dividend holds a five-year growth rate of 5.31 per cent.

Stocks of Canadian Western Bank closed at C$ 39.73 apiece on October 21, up by nearly one per cent.

Also Read: 2 Mid-Cap Stocks To Buy & Book Profit in 2021

The bank held earnings per share (EPS) of C$ 3.46, price-to-book (P/B) ratio of 1.086 and a return on equity (ROE) of 10.38 per cent.

Canadian Western has been one of the top ranked financial stocks on the Toronto Stock Exchange, as on October 21.

  1. Cargojet Inc (TSX: CJT)

This Canadian cargo operator noted a massive surge in sales amid the pandemic as demand for online deliveries went through the roof.

Cargojet shareholders received a quarterly dividend payout of C$ 0.26 on October 5. At the time of writing this, its dividend yield was 0.525 per cent and its dividend growth rate for five years was 9.29 per cent.

Cargojet stocks closed at a value of C$ 198.19 apiece on October 21, up by nearly a per cent. Its price-to-earnings (P/E) ratio was 94.8, while its ROE was 9.23 per cent. 

Also Read: What are The Best Canadian Mid Cap Stocks to Buy?

As the TSX noted notable gains on October 21 on the back of well-performing industrials stocks, Cargojet scrips were among the top industrials performers on the stock exchange.

  1. AltaGas Ltd (TSX: ALA)

The Calgary, Alberta-based energy infrastructure, which extracts and supplies natural gas across North America, is scheduled to pay its next monthly dividend of C$ 0.083 on November 15, 2021.

At market close on October 21, ALA stocks were up by nearly two per cent at C$ 26.66 per share with a market cap of about C$ 7.4 billion.

AltaGas also noted a P/E ratio of 20.4, an EPS of C$ 1.31, and an ROE of 5.88 per cent. Its dividend yield was roughly 3.7 per cent.

Known for its involvement in the clean energy industry, AltaGas was ranked among the top utility stocks on the TSX on October 21.

Bottom line

Mid-cap companies are often considered to have a track record of better returns and liquidity as compared to penny and small-cap companies. However, mid-cap stocks can also come with risks factors that investors need to evaluate.

Therefore, be it mid-cap stocks or otherwise, investors should positively research companies, especially their financials and fundamentals, before making any sort of investment.

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