12 Cheapest Dividend Stocks from Canada

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Apr 05, 2012
Everybody knows that the economy in Canada is a commodity-based one and not as much shaking as the American consumer based economy. On America’s stock markets are 181 companies with headquarters in Canada. Sixty-six of these companies pay dividends but not all of them are already cheap.


However, I’ve tried to screen the market by the cheapest Canada stocks with a listing in America. All stocks should have a current P/E ratio of less than 15, a P/S ratio of under two and a positive dividend yield. Exactly 12 companies fulfilled these criteria of which 2 are high yields. Six are recommended to buy.


Here are my favorite stocks:


Domtar (UFS, Financial) has a market capitalization of $3.59 billion. The company employs 8,700 people, generates revenues of $5,612.00 million and has a net income of $372.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $961.00 million. Because of these figures, the EBITDA margin is 17.12 percent (operating margin 10.48 percent and the net profit margin finally 6.63 percent).


The total debt representing 14.45 percent of the company’s assets and the total debt in relation to the equity amounts to 28.53 percent. Due to the financial situation, a return on equity of 11.82 percent was realized. Twelve trailing months earnings per share reached a value of $9.02. Last fiscal year, the company paid $1.30 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 10.83, P/S ratio 0.75 and P/B ratio 1.23. Dividend Yield: 1.41 percent. The beta ratio is 2.68.


Imperial Oil Limited (IMO, Financial) has a market capitalization of $37.79 billion. The company employs 5,085 people, generates revenues of $31,008.58 million and has a net income of $3,403.33 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,222.62 million. Because of these figures, the EBITDA margin is 16.84 percent (operating margin 14.35 percent and the net profit margin finally 10.98 percent).


The total debt representing 4.75 percent of the company’s assets and the total debt in relation to the equity amounts to 9.06 percent. Due to the financial situation, a return on equity of 27.52 percent was realized. Twelve trailing months earnings per share reached a value of $3.99. Last fiscal year, the company paid $0.44 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 11.18, P/S ratio 1.25 and P/B ratio 2.88. Dividend Yield: 1.07 percent. The beta ratio is 1.03.


Agrium (AGU, Financial) has a market capitalization of $13.81 billion. The company employs 14,800 people, generates revenues of $15,470.00 million and has a net income of $1,508.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,487.00 million. Because of these figures, the EBITDA margin is 16.08 percent (operating margin 13.34 percent and the net profit margin finally 9.75 percent).


The total debt representing 17.98 percent of the company’s assets and the total debt in relation to the equity amounts to 36.78 percent. Due to the financial situation, a return on equity of 25.91 percent was realized. Twelve trailing months earnings per share reached a value of $9.52. Last fiscal year, the company paid $0.28 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 9.18, P/S ratio 0.90 and P/B ratio 2.16. Dividend Yield: 0.51 percent. The beta ratio is 1.59.


Take a closer look at the full table of cheap Canadian dividend stocks. The average price to earnings ratio (P/E ratio) amounts to 11.05 and forward P/E ratio is 11.21. The dividend yield has a value of 2.82 percent. Price to book ratio is 2.03 and price to sales ratio 1.29. The operating margin amounts to 24.17 percent.


Related stock ticker symbols:

TAC, BCE, SJR, RCI, NSU, MGA, TCK, BAM, UFS, SU, IMO, AGU


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