Commodities experienced some major declines in the beginning of 2017 that dropped the stock prices of valuable Canadian companies. Rising interest rates and worries over housing have also damaged Canadian REITs. However, the narrative may be shifting as we head into the last few months of 2017, and investors have an opportunity to purchase high-yield dividend stocks at a low price.
Agrium Inc. (TSX:AGU)(NYSE:AGU) is a Calgary-based retail supplier of agricultural products and services. The company announced its second-quarter results on August 10. Earnings were down slightly from Q2 2016 with net income reported at $557 million driven by weak nitrogen and phosphate benchmark prices. Still, sales volumes and potash production were reported at record numbers. The stock has fallen 2.1% in 2017 and offers a 3.5% dividend yield at $0.88 per share.
Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT) is the largest potash producer in the world and the third-largest producer of nitrogen and phosphate. The company posted its second-quarter earnings on July 27 and reported earnings of $0.24 per share. The stock has fallen 10.8% in 2017 as previously mentioned low nitrogen and phosphate prices have generated downward pressure. Experts expect nitrogen prices to be reaching a low, and Potash Corp. offers a dividend yield of 2.4% at $0.13 per share.
Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock has been punished by a prolonged slump in oil prices and news that Ontario is reviewing a key infrastructure deal with the company after rising costs have put pressure on the government. Shares are down 11% in 2017 and 5.9% year over year. Enbridge has significant projects in its pipeline, and over 95% of its cash flow is regulated or backed by long-term contracts. It is primed for big future dividend growth and currently boasts a 4.9% dividend yield at $0.61 per share.
RioCan Real Estate Investment Trust (TSX:REI.UN) has fallen 10.7% in 2017 and 15% year over year as investor sentiment has begun to sour on Canadian real estate and now that the Bank of Canada has triggered its first interest rate increases in almost a decade. The stock offers a 5.9% dividend yield at $0.12 per share.
H&R Real Estate Investment Trust (TSX:HR.UN) has also dipped in 2017, experiencing a 3.7% decline and a 7.6% fall year over year. It owns and operates several properties in Houston, which it recently reported were undamaged by Hurricane Harvey. The stock has a dividend yield of 6.4%, offering $0.12 per share.
Both of the real estate stocks give investors the opportunity to load up on income and buy low. Interest rates will remain at near historic lows, even in the face of gradual increases, and fragile consumer debt loads will prevent any measures that could destabilize the market.
