Two of the best dividend-paying stocks in Canada to buy on sale


No one knows if the markets will dive into a correction or if continue higher until the end of the year. Yet even though we’re already in the early stages of the premiere, you shouldn’t pass up the best dividend-paying stocks because of what some have been saying on TV.

As an investor, you must resist the urge to time short-term market movements. Instead, you should be prepared to pick up the good deals you see, regardless of what anyone thinks Mr. Market will do next.

Even the great Warren Buffett doesn’t know where S&P 500 Composite Index will be tomorrow, next week, next month or next year. What he and many large investors do be aware that stocks tend to increase over the long term. Over the next decade and beyond, larger markets are likely to climb higher. And if you are looking to grow your wealth for the long term, you don’t have to wait for the bottom of the market because chances are it will come and go without giving you a chance to enter.

In this article, we’ll take a look at two of the best dividend-paying Canadian stocks that appear to be on sale right now.

Suncor Energy: Warren Buffett Sold, But You Should Buy

Suncor Energy (TSX: SU) (NYSE: SU) is a formidable integrated oil company that has come under pressure lately. The company had to cut its dividend last year, but with the tides turning in favor of fossil fuels, Suncor will be able to offer frequent and generous dividend hikes while continuing to climb out of these worrying lows in the market. early 2020.

The stock is trading at 1.2 times the pound and 1.6 times the sales, both at the lower end of the historical range. As oil prices continue to rise, I find it more than likely that SU stock will follow suit as it climbs to its pre-pandemic highs that are still so far away.

Analysts seem rather bullish on the stock, with a high price target of nearly $ 45, which implies more than 55% rise from current prices. Although Warren Buffett threw in the towel on the stock, the name is one of the most undervalued dividend-paying stocks. The name claims a 2.9% yield which is well positioned to grow at an above average rate on the other side of this pandemic.

Restaurant Brands International: a dividend stock sleeper

Restaurant Brands International (TSX: QSR) (NYSE: QSR) is a reopening game in Canada, I think a lot of investors are sleeping. Stocks recently fell 6%, abandoning modest gains posted after a strong run of earnings results for no good reason.

With a hefty 3.2% dividend yield, Restaurant Brands is one of the most generous quick-service restaurants on the market today, and I think it’s also one of the most undervalued considering the post-pandemic growth potential of its powerful Tim Hortons, Burger King and Popeyes Louisiana Kitchen chains.

The stock is trading 6.3 times sales, 8.7 times the pound and 20.9 times expected next year’s earnings. While growth has slowed to single-digit single digits in recent years, it’s important to remember that restaurants have taken the brunt of the damage during the pandemic.

Restaurant Brands is always a growth game. As the locks are lifted and management put their foot on the accelerator, I would look for dividend-paying stocks to hit new highs.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool service or advisor. We are Motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we’re posting sometimes articles that may not meet recommendations, rankings or other content. .

Silly contributor Joey frenette holds shares in RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC.


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