The TSX Composite benchmark has seen a correction in the last couple of months mainly due to a sharp selloff in tech stocks. As most high-growth stocks continue to look overvalued, investors might continue to shift their attention towards fundamentally strong and reliable dividend stocks . This increased buying is one of the reasons why most dividend stocks have remained unaffected by the recent broader market weakness.
Let’s take a closer look at two such top Canadian dividend stocks that could help you receive handsome returns on your investment in the long run. Labrador Iron Ore stock
Labrador Iron Ore Royalty (TSX:LIF) is a Toronto-based company with slightly more than 15% equity interest in Iron Ore Company of Canada (IOC). Labrador Iron Ore currently has a market cap of about $2.7 billion, and its stock offers an amazingly high dividend yield of more than 13%.
The ongoing trend in the company’s financials looks impressive, as its adjusted earnings rose by 82.2% YoY (year over year) to $1.64 per share in the September quarter. IOC’s iron ore production remained strong in the fourth quarter, which could help Labrador post strong financial results for another quarter.
Also, the ongoing recovery in iron ore prices is likely to help IOC improve its profitability in the near term and help Labrador stock keep its bullish trend intact. These are some of the key factors that make this dividend stock in Canada worth buying right now. Investors’ rising expectations from its coming earnings could be the reason why LIF stock has already inched up by 14% in 2022 so far. Pembina Pipeline stock
Pembina Pipeline (TSX:PPL) (NYSE:PBA) could be another great Canadian dividend stock to add to your portfolio in February. This Calgary-based energy transportation company currently has a market cap of about $23 billion, as its […]
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