Canadians with limited capital can put their money to work by purchasing TSX stocks. If you only have $100, the top investment choices right now are Whitecap Resources (TSX:WCP) and small-caps Stingray Group (TSX:RAY.A), and Exco Technologies Limited (TSX:XTC). These three stocks are not top performers in 2022 but are generous dividend payers.
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Energy
Whitecap Resources is not a high-flyer in the red-hot energy sector, but it’s beating the broader market. At $9.37 per share, the year-to-date gain is 28%. The 4.7% dividend yield is likewise attractive. Moreover, the energy stock belongs to a select group that pays monthly dividends.
The $5.87 billion oil-weighted growth company has a low-decline light asset base that is considered both growth and cash generation engines. Like most Canadian energy firms, Whitecap benefits from the favourable pricing environment. In the first half of 2022, petroleum and natural gas revenues climbed 113% to $2.26 billion versus Q2 2022.
During the same stretch of time, funds flow increased 160% year-over-year to $1.18 billion. The most striking figure was the net income of $1.03 billion, which represents a 2,605% increase from a year ago. In Q2 2022, Whitecap’s dividend payments reached $56 million or 94% higher (per share basis) compared to the same quarter in 2021.
You can also expect Whitecap’s funds flow profile to significantly improve once it completes the $1.9 billion deal to acquire XTO Energy Canada. According to management, the asset will generate significant free funds flow, resulting in free funds flow per share accretion of 20% in 2023 and 2024.
Production should also grow between 50,000 and 60,000 barrels of oil equivalent per day (boe/d) over the next three to five years.
Broadcasting
Stingray is a $467 million music, media, and technology company that distributes audio and video music brands globally. Its President, co-founder, and CEO, Eric Boyko, said the overall business continued to gain momentum in Q1 fiscal 2023. In the three months ended June 30, 2022, revenue increased 21.6% to $78.13 million versus Q1 fiscal 2022.
Notably, net income soared 123.7% year-over-year to $9.4 million. Boyko cites the strength of newly acquired InStore Audio Network (ISAN) and improved radio sales for the impressive top-line growth. The communications services stock is down -21% ($5.35 per share) but pays a lucrative 5.61% dividend.
Auto parts
Exco Technologies supplies innovative technologies in the diecast, extrusion, and automotive industries. The $312 million company has a presence in nine countries and services a diverse, broad customer base. In Q2 2022, sales increased 12% to $129.25 million versus Q2 2021, although net income dipped 36% year-over-year to $5.56 million.
Nevertheless, its President and CEO, Darren Kirk, said, “Our results demonstrate Exco’s ability to navigate through very challenging market conditions.” He adds that the company is benefiting from the electric vehicle (EV) revolution and worldwide movement towards reducing emissions.
Management maintains a favourable outlook across all its business segments in the medium term, notwithstanding the current macro-economic challenges. The industrial stock trades at $8.10 per share (-19% year-to-date) and pays a hefty 5.19% dividend.
Key takeaway
These three stocks are not only low-priced dividend stocks, they’re also value stocks. You would not be wasting $100 on them.
