As many investors know, finding the right stock at the right price is not an easy task. It is even more difficult to find a stock that can provide both growth and dividend income. To make things easier on you, I have compiled a list of three dividend-paying stocks that are trading at inexpensive forward valuations compared with their five-year averages, so let’s take a closer look to determine which one would fit best in your portfolio.
1. Veresen Inc.
Veresen Inc. (TSX:VSN) is one of North America’s largest diversified energy infrastructure companies. At today’s levels, its stock trades at 42.5 times fiscal 2015’s estimated earnings per share of $0.37 and 35.8 times fiscal 2016’s estimated earnings per share of $0.44, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 50. In addition, the company pays a monthly dividend of $0.0833 per share, or $1.00 per share annually, giving its stock a 6.35% yield.
2. Gluskin Sheff + Associates Inc.
Gluskin Sheff + Associates Inc. (TSX:GS) is one of Canada’s pre-eminent wealth management firms, serving high net-worth individuals and select institutional investors. At current levels, its stock trades at 15.3 times fiscal 2015’s estimated earnings per share of $1.68 and 12.4 times fiscal 2016’s estimated earnings per share of $2.07, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 16.1. Additionally, the company pays a quarterly dividend of $0.225 per share, or $0.90 per share annually, giving its stock a 3.5% yield.
3. Royal Gold Inc.
Royal Gold Inc. (TSX:RGL)(NASDAQ:RGLD) is one of the world’s largest precious metals royalty and stream companies, with ownership interests in 37 mines and 23 development-stage projects around the world. At today’s levels, its stock trades at 53.3 times fiscal 2015’s estimated earnings per share of US$1.48 and 45.3 times fiscal 2016’s estimated earnings per share of US$1.74, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 63.7. In addition, the company pays a quarterly dividend of US$0.22 per share, or US$0.88 per share annually, giving its stock a 1.4% yield.
Should you buy one of these stocks?
Veresen, Gluskin Sheff + Associates, and Royal Gold represent three of the best long-term investment opportunities in the market today. Foolish investors should take a closer look and consider buying one or more of them right now.
