Quality, out performance, dividend growth: I want them all. For long-term investments, aiming for dividend growth that exceeds current yields can lead to outperformance.
Here are two high-quality Canadian stocks to buy in April if we reopen our portfolio today.
For the following dividend stocks, we have decided to explain the potential for long-term returns from 2007. That was the year before we fell into the Great Depression. Since that period, these inventories have recovered and expanded. Their five-year earnings, also shown, give a glimpse of their more recent earnings.
Buy this diverse Canadian stock today
Brookfield Asset Management (TSX: BAM.A)(NYSE: BAM) Is a global alternative asset manager managing US $ 600 billion in real estate, infrastructure, renewable energy, private equity and credit total assets. As an investor, manager and operator across regions and asset types, you have ample flexibility to drive growth.
Since 2007, Brookfield Asset Management shares have generated approximately 10% annual returns. Over the last five years, compound interest income on large cap stocks has been around 15% per year.
Brookfield Asset Management The dividend growth rate for the five years was 8.8%, the ninth consecutive year of dividend increases. The company is in a good position to reinvest most of the cash available to grow its business. As a result, dividend growth is lower than before.
At $ 44.53 per share at the time of writing, the shares are undervalued by about 17% and offer a yield of nearly 1.2%. According to analysts’ average price targets, the stock could rise by about 20% in 12 months.
Investors should be aware that stocks will sell out due to market corrections. For example, during the pandemic market crash last year, BAM stocks fell by more than 40% from peak to trough.
This Canadian tech stock was bought in April 2021
Enghouse Systems (TSX: ENGH) Is another diverse business Top Canadian Stocks to Buy in April 2021.. There are two segments. One focuses on customer engagement solutions, including video collaboration, call processing, and more. The other provides solutions for telecommunications and media, utilities, defense organizations, and transportation, supply chains, and public safety.
Since 2007, tech stocks have generated approximately 21% annual returns. Over the last five years, compound interest income on growth stocks has been around 18% per year.
Enghouse has increased its dividend for the 14th consecutive year with a dividend growth rate of 19% for five years. This is in close agreement with the five-year earnings. Its sustainable payout ratio is about 36% of earnings.
Shares have been revised by 19% as growth is expected to slow after a great move last year. It’s a good time to buy undervalued tech stocks before growth resumes.
At the time of writing, at just over $ 60 per share, investors can buy shares at a yield of just over 1%. According to the average price target, the stock price is undervalued by 20% and could rise by 25% in the next 12 months.
If you did not own a stake in Brookfield Asset Management or Enghouse Systems, you will purchase it in April 2021. Both are undervalued and high quality companies that can deliver exceptional profits over the long term.
If they sell out on market corrections, I would see them as an opportunity to buy more stock at even lower prices!
These Canadian stocks are also suitable for purchase in April 2021.
Well-known Canadian investor Ian Butler has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
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This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..
Stupid contributor Cain Owns shares in Brookfield Asset Management and Enghouse. Motley Fool owns and recommends a stake in Brookfield Asset Management. Motley Fool is BROOKFIELD ASSET MANAGEMENT INC. CL.ALV and Enghouse Systems Ltd are recommended.
Two Canadian stocks to buy in April 2021 if portfolio reopened
https://www.fool.ca/2021/04/01/2-canadian-stocks-id-buy-in-april-2021-if-i-restarted-my-portfolio/ Two Canadian stocks to buy in April 2021 if portfolio reopened