What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be showcasing 3 Canadian dividend growth stocks to buy in the current market. These 3 companies are expected to heavily increase their dividends as well as see their stock price grow over the next year. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
Growth stocks were hit hard following the U.S. Federal Reserve’s triple rate hike. The move sent rates surging, applying even more selling pressure to the many growth stocks, many of which no longer showcase good multiples. As inflation continues to persist, while rate hikes come flowing in, it’s hard to imagine a market where growth can bottom out and begin to head upwards. Indeed, the rest of the market has proven fragile, with dividend stocks and even energy plays fading a little last week. Stocks, like anything else, are assets that investors should look to buy when they’re on sale by 10%, 20%, or even more than 50%. With a rising risk of recession, investors should insist on companies that actually generate profits. Hence have a good dividend payout and able to increase it. Here are 4 Canadian growth stocks to look out for.
First stock I will be talking about is Brookfield Asset Management (ticker symbol BAM.A) is an asset manager and real estate investment trust manager that lies within multiple sectors all around the world. This allows it to grow through several methods, including acquisitions, buyouts, and even growing industries like renewable energy. Shares of Brookfield are down 25% year to date but up 65% over the last five years. It offers a valuable price-to-earnings ratio of around 17.6 and a debt-to-equity ratio of 1.39. It also has a 1.24% dividend yield to your portfolio. While it’s one of the growth stocks that might be suffering now due to inflation, supply demands, and interest rates, long-term estimates predict the stock could even double in share price over the next year. This is not the first time I go over this company, it is an overall solid Canadian growth stock for the coming years and the stock is very likely to increase its dividends.
Second stock I will be talking about is Onex (ticker symbol ONEX), it is another growth stock I’d recommend for long-term diversification. Just like Brookfield, it focuses on owning and managing companies. In this case, Onex focuses on growing through acquisitions and managing large companies, including airlines. But the company has to buy them up cheap, meaning it can take time to rebound — especially in this market. This is why shares of Onex stock are down 33% year to date. Yet again, it offers strong value trading at 3.84 times earnings, and a really good 0.08 debt-to-equity ratio. Plus, you get a nice, little dividend of 0.61%. Similar to Brookfield, investors could see their shares practically double in the next year, according to estimates. This comes as the market finally moves towards investment once more and will see Onex and other large firms thrive. Great Canadian ticker to do some research into, I might even do a full video about them, so far I like what I am seeing from them.
Third stock I will be talking about is Canadian Pacific Railway (ticker symbol CP), a railway company that has one of the widest moats out there following its recent merger with Kansas City Southern. The company will have its hands full as it looks to integrate the latest deal that will grant it exposure to Mexico and the southern U.S. CP Rail is bound to take a hit as GDP (gross domestic product) gets weaker. However, expect the stock to be among the first to rebound when the markets start to rise. Further, if we’re not due for a Fed-induced recession, CP stock could be among the first to make new highs again. The stock trades at around 22 times trailing earnings, with a 0.86% dividend yield. Not exactly a bargain, even after the correction. Still, as a dividend grower with one of the largest moats out there, investors should keep the stock on their radar.
Fourth and final stock I will be talking about is of course one of my favorites Enbridge (ticker symbol ENB). The stellar recovery in oil prices and strong energy demand provides a multi-year growth for Enbridge. The underinvestment in new supply due to the pandemic and disruptions from the war indicate that commodity prices could stay elevated in the foreseeable future, which would support Enbridge’s growth. Enbridge is poised to benefit from the capital projects recently placed into service. Moreover, its strong secured capital program points to a healthy future. Also, its focus on acquisitions, momentum in the core business, and the expansion of renewables capacity goes well for growth and makes it a top energy stock to invest in. Enbridge is also famous for its consistent and high dividend payments. The company has been paying a regular dividend for nearly 67 years. Meanwhile, it has grown it for the last 27 consecutive years. Enbridge is confident that it will deliver 5-7% annual growth in its dividend cash flows. This would enable it to further enhance its dividend payments during that period. By investing in Enbridge, investors can earn a high yield of 6.5% and overall hold a solid Canadian company.
Hope you guys enjoyed these 4 Canadian stocks. I always enjoy watching and talking about these stocks during bearish markets, since I love to see their journey to reach new highs in the long term. People are doubting the market, people are doubting stocks, fundamentals are obviously not respected in this type of market, where stock movement is only due to fear of investors. It’s good to know these Canadian stocks that I went over will perform well in the long term. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. It is a win-win situation. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!