There are many dividend shares within the Canadian marketplace for traders to select from. That stated, I’d argue a really small slice would doubtless match into the “all-star” bucket, or at the very least my very own private watch checklist (which I wish to suppose is chock filled with such all-stars). Time will inform if that’s the case.
However so far as the highest dividend shares I’m watching most carefully proper now, there are two that stand out as potential winners over the near- (one yr), medium-, and long-term horizons.
Sienna Senior Residing
For traders seeking to profit from fairly dominant demographic traits underway, Sienna Senior Residing (TSX:SIA) is a prime inventory to contemplate.
As the corporate’s identify suggests, Sienna owns and operates an unlimited portfolio of senior residing properties positioned primarily within the Canadian market. As the typical age of Canadians continues to rise, and extra child boomers search a cushty retirement with the care they want, Sienna’s portfolio of high-quality belongings in key Canadian markets ought to present significant internet earnings development.
With a dividend yield of 4.5% and loads of steadiness sheet room to proceed elevating dividends over time, I believe Sienna’s vastly improved steadiness sheet and development outlook make this a prime inventory to contemplate right here. Beforehand overvalued as traders broadly appeared to front-run these aforementioned demographic shifts, I wish to suppose that Sienna has been left for lifeless (usually talking) by the market lately.
Whereas this inventory doesn’t present a dividend yield within the high-single-digit vary anymore, this can be a yield I believe is value getting into. When it comes to a inventory with each passive earnings and development upside, Sienna is a prime decide of mine proper now.
Whitecap Assets
One other prime Canadian dividend inventory I proceed to pound the desk on is Whitecap Assets (TSX:WCP).
With a dividend yield of 6.2% and a ahead price-to-earnings a number of lower than 10 occasions, there’s quite a bit to love about Whitecap’s underlying valuation and its earnings potential.
What’s maybe most spectacular about this yield is the transfer WCP inventory has made lately. Now buying and selling close to its highest stage in a decade, traders are clearly pricing in better margins and upside, if oil costs can keep the place they’re.
That’s a giant if, and there’s loads of danger with any power producer. For these within the small or mid-cap vary (I’d put Whitecap within the mid-cap bucket), that’s maybe extra true.
However with an bettering steadiness sheet and loads of working leverage (revenues almost doubled year-over-year this previous quarter, partly on account of rising manufacturing), there’s quite a bit to love about the place this inventory is positioned proper now.
