Welcome to our post about the Canadian stocks! In this post, we will study about the best high-growth Canadian dividend stocks investors should invest in.
The dividend investing was not much in the focus in 2023 because un-ending optimism dominated the market led by AI-backed rally which kept on supporting the technology stocks. As a result of this, the recession forecasts and inflation-related worries subsidised.
Now that we have entered 2024, will this rally sustain?
Well, US Bank in 2024 outlook report mentioned that experts expect slower growth during 1H24 as and when consumer savings dissipate and the impacts of rate increases become visible.
In the current uncertain environment, how relevant are the dividend stocks?
Latest inflation report exhibited that US Fed’s long fight against inflation might not be over and the rates might remain at higher levels. Geopolitical risks, decline in household savings and consistent inflation have finally made the dividend companies such as The Procter & Gamble Company (NYSE:PG) and Colgate-Palmolive Company (NYSE:CL) etc. more relevant.
Experts believe that inflation, interest rates and earnings are somewhat interrelated to the fluctuations in the equity price movements as inflation levels persisted above US Fed’s price stability target exhibiting a period of increased interest rates.
With this in mind, will now have a look at Best high-growth Canadian dividend stocks investors should invest in.
1. Vox Royalty Corp.
The company is a mining royalty and streaming company. Its portfolio is focused on precious metals royalties.
It has announced its 3Q23 financial results, with revenues of $3,514,929 and record YTD revenue of $9,313,168 (in comparison to revenue of $3,181,574 and $6,403,347 for 3 and 9 months ended September 30, 2022, respectively).
The company’s gross profit came in at record $3,109,818 and $7,906,163 for 3 and 9 months ended September 30, 2023 (against $2,463,007 and $5,072,178 for 3 and 9 months ended September 30, 2022, respectively).
3Q23 net income came in at $1,046,532 and YTD net income was at $316,850 (compared to $83,940 and $276,117 for 3 and 9 months ended September 30, 2022, respectively).
The company generated cash flows from operations of $1,359,501 and $2,929,309 for 3 and 9 months ended September 30, 2023 (in comparison to $966,106 and $351,452 for 3 and 9 months ended September 30, 2022, respectively). It has strong balance sheet position by quarter end, including cash and accounts receivable of $12,474,468, working capital of $9,749,118 and total assets of $50,720,916.
Its 3Q results reflect strong quarterly and YTD gross profits, which were supported by solid revenue which was in line with annual revenue guidance it announced on April 27,2023. The company’s differentiated, returns-focused strategy continues to result in significant fundamental value for investors.
To augment organic growth of the portfolio, the company has acquired 10 royalties in Australia in the previous 2 months. There are expectations to unlock medium- to long-term revenue from critical gold and copper assets like Red Hill, Plutonic East and Horseshoe Lights.
Apart from these recent asset acquisitions, the company has announced innovative coal IP licensing transaction which is targeted at unlocking latent value for the company’s shareholders.
It announced quarterly cash dividend of $0.011 per common share, payment date of which was January 12, 2024 and record date was December 29, 2023.
2. Centerra Gold Inc.
The company is a gold mining and exploration company, which is engaged in operation, exploration, development, and acquisition of gold properties that are located in Asia, North America, and other markets worldwide.
It has released third quarter 2023 operating and financial results, in which its gold production came in at 126,221 ounces, which includes production of 39,554 ounces of gold from Mount Milligan Mine and 86,667 ounces of gold from Öksüt Mine. Copper production for quarter came at 15.0 million pounds.
3Q23 gold sales were 130,973 ounces, which includes an average realized market price of $1,741 per ounce along with copper sales of 15.4 million pounds, which consists average realized copper price of $2.99 per pound.
Net earnings of the company came at $60.6 million or $0.28 per share and adjusted net earnings were $44.4 million or $0.20 per share. Cash provided by operating activities were $166.6 million and free cash flow was $144.5 million, which included cash provided by mine operations and FCF from Öksüt of $143.9 million and $133.8 million, respectively.
Total liquidity came in at $890.2 million, which represents cash balance of $492.1 million and $398.1 million available under the corporate credit facility as at September 30, 2023. The company has declared quarterly dividend of C$0.07 per common share.
In 3Q23, deferred milestone payment of $31.5 million was done to Waterton Nevada Splitter, LLC regarding the February 2022 acquisition of Goldfield Project.
How does the institutional ownership of the company look like? Well, several institutional investors are taking position in the company’s stock.
Qube Research & Technologies Ltd bought new position in the company’s shares during 3Q for the consideration of $31,000 and Versor Investments LP made the acquisition of new position in 3rd quarter worth $52,000.
3. Manulife Financial Corporation
The company provides life insurance and wealth management products and services to a range of individuals along with group customers in Canada, the US and Asia.
In 3Q23, the company’s net income attributed to shareholders came in at $1.0 billion, which exhibits a rise of $0.2 billion from transitional net income attributed to shareholders in 3Q22. Core earnings came at $1.7 billion, up by 28% on the constant exchange rate basis from 3Q22.
Overall, the increased rates have benefited the company, and this should continue to benefit underlying businesses and financial performance. It remained disciplined in its capital and expense management approach.
Conclusion
While above are some of the best high-growth Canadian dividend stocks investors should invest in, there are several other Canadian dividend companies which are expected to perform well. iShares S&P/TSX Canadian Dividend Aristocrats Index ETF has seen an increase of ~3.3% over the past one month.
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