Business & Investment

Top 2 Canadian Dividend Stocks to Watch in October 2021

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Dividend investment is a safer way to profit from the stock market. I recommend this type of investment to all investors (young people, old people, risk takers, risk averts). Good dividend stocks cushion risk takers by balancing high-risk bets with quarterly or monthly dividends. For risk-averse investors, they act as a passive source of income.

There are two here Dividend stock Watch out for October:

This is the reason.

BCE stock

Many of you use BCE’s wireless or wired services. This is because BCE has the largest communications infrastructure to reach millions of Canadians. The company is currently accelerating its 5G infrastructure. Therefore, we are diverting cash flow to capital investment, which surged 34% year-on-year. Second quarter..

BCE also secures 5G leadership by acquiring 37% of the 3.5 GHz spectrum provided by the government to state carriers. 5G infrastructure connects to self-driving cars, smart cities, drones and robots. Just as 4G has changed people’s use of the Internet (video calling, livestreaming on mobile), 5G will change people’s lives. 5G opportunities are several times more than 4G.

BCE dividend angle

5G not only allows BCE to pay higher dividends, but also allows it to raise its share price. As we are using surplus cash to build our 5G infrastructure, we do not expect a significant increase in dividends over the next two years. Stock prices can make up for the slowdown in dividend growth with rising stock prices. This year, inventories surged more than 20% until September 5, before fixing more than 5%. This created an opportunity to buy stock at a discounted price and secure a dividend yield of 5.54%.

Suncor Energy Stock

The Canadian stock market is dominated by energy and financial stocks. After all, Canada is the fourth largest oil producer in the world, exporting 98% of its oil to the United States. Suncor is the largest beneficiary of Canada’s terrain. Suncor does everything related to petroleum, from extraction to production, refining, jet fuel, gasoline and retailing as petroleum products.

A pandemic nightmare forced Suncor to cut dividends by 55% in May 2020 as oil prices turned negative due to oversupply. Since then, crude oil prices have leveled off at US $ 35 per barrel. As the global economy resumed, oil demand revived due to stagnant travel demand and increased factory production. WTI crude jumped to the 2014 level of US $ 82 / barrel. OPEC expects oil demand to grow above pre-pandemic levels in 2022.

These are the plus points for Suncor shares and could help reach the pre-pandemic level of $ 40 (up 37%).

Sanko’s dividend angle

Suncor wants to compensate shareholders for the May 2020 dividend cut. Therefore, assuming a WTI price of US $ 55 per barrel, we planned to increase dividends at a compound annual growth rate (CAGR) of 25% between 2022 and 2025.

Suncor plans to increase its free funding flow by $ 2.15 billion through improved margins, reduced cost of capital, and growth opportunities. According to the plan, there will be significant dividend growth in 2024 and 2025. Invest in stocks that have potential for future growth. NS Circular inventory As Suncor is at the beginning of an uptrend. This is the right time to buy stock.

Top 2 Canadian Dividend Stocks to Watch in October 2021 Top 2 Canadian Dividend Stocks to Watch in October 2021

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