Climate Change Agenda: Is It Time To Invest In Canadian Steel Stocks?

May 26, 2021 03:43 AM AEST | By Raza Naqvi

Climate Change Agenda: Is It Time To Invest In Canadian Steel Stocks? — Image source: sdecoret,Shutterstock

Labrador Iron Ore Royalty Corporation (TSX:LIF)

This Canadian corporation is committed to tackling environmental issues and has an Environment and Sustainability Policy to protect life and the environment for present and future generations.

Labrador offers a 36.01 per cent return on assets and holds a price-to-earnings ratio of 10.2. The corporation witnessed a staggering dividend growth of 26.2 per cent in the past three years and it pays a quarterly dividend of C$ 1.

LIF stock skyrocketed by about 104 per cent in a year, outpacing the sector of S&P TSX Steel Index, which grew by 32 per cent year-to-date (YTD). Upon market close on Friday, May 21, the shares were priced at C$ 43.14, as per TMX.

Stelco Holdings Inc. (TSX:STLC)

The Ontario-based company produces and sells steel products across North America. Stelco has a market cap of C$ 3 billion and it offers a 7.7 per cent return on equity, as per TMX data. In the last six months, Stelco stock advanced by 95.6 per cent and posted a stellar growth of 408.6 per cent in 12 months.

The scrips closed at C$ 34.13 on Friday, May 21. It’s 52-week high of C$ 39.01 came on May 10, 2021. The steel producer also distributes a quarterly dividend of C$ 0.10 and registers a dividend yield of 1.18 per cent.

In Q4 2020, ended February 17, 2021, the company's operating income was C$ 39 million compared to an operating loss of C$ 6 million in Q4 2019. The adjusted EBITDA increased by 500 per cent year-over-year to C$ 60 million.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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