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Dear Fellow Fools,
While the market — outside of banks — has largely been doing well this year, there are still plenty of attractively priced stocks out there with great dividend yields. The choice that matters most right now is which industry you’d like to get exposure to.
My colleagues and I at Motley Fool Dividend Investor have identified 4 dividend stocks worthy of your dollars today. We found a solid consumer staple, an energy stock, and a few financials.
Regardless of which industry you chose to invest in, with interest rate increases on hold or declining, and inflation abating, it’s a great time to be a value-driven investor focused on income generation.
Dividend Investor “Best Buy Now” Pick #1:
Hamilton Enhanced Canadian Bank ETF (TSX:HCAL)
Calling all contrarians!
During my more than 20 years as a professional investor in the Canadian financial industry, it’s been rare that the Canadian banks have been out of favour, and for good reason. Especially when it comes to their domestic retail franchises, these are some of the best businesses our country has to offer.
The most prominent example of the group being out of favour was during the financial crisis circa 2008 or so. The move to make was to buy them — any of them, and as much as you could possibly afford. Bank of Montreal (TSX:BMO) which has paid out a never-cut dividend since the 1800s, offered a yield of more than 11%, for goodness sake.
Though, to a lesser extent, a similar situation arose during the market meltdown that surrounded the onset of the pandemic back in March 2020.
And while we’ve not had the same kind of system-wide shock as either of these past episodes, despite one of the largest bank failures in the history of the U.S., currently, we’re in the midst of another period, where financials are being shunned by market participants — Canadian banks included.
About Granite Real Estate Investment Trust
Last updated Mar 31, 2025, 12:00:00pm EDTWe’re of the mind that history is all the playbook that we need. The move to make when the Canadian banks fall from the market’s good graces is to buy them—maybe not as substantially as hindsight dictates we all should have in the throes of the financial crisis, but adding to one’s exposure in the current environment is very likely to play out as we’d like all of our investments to play out: profitably.
