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TSX Dividend Stocks Featuring Amerigo Resources And Two Others
With Canada's election now behind it, the focus has shifted to economic policies and trade diversification, as policymakers aim to stimulate growth amid a backdrop of softening earnings forecasts. In this environment, dividend stocks can offer stability and income potential for investors seeking resilience; Amerigo Resources and two other TSX-listed companies exemplify this approach with their consistent dividend payouts.
Overview: Amerigo Resources Ltd., with a market cap of CA$280.60 million, operates through its subsidiary Minera Valle Central S.A. to produce copper and molybdenum concentrates in Chile.
Operations: Amerigo Resources Ltd. generates revenue of $192.77 million from the production of copper concentrates under a tolling agreement with DET.
Dividend Yield: 6.6%
Amerigo Resources' dividend, yielding 6.6%, is among the top 25% in Canada. While dividends have increased, they remain unstable due to a short payment history of four years and volatility. The dividend is well-covered by cash flows (26.6% cash payout ratio) and earnings (71.7% payout ratio). Despite significant insider selling recently, the company reported strong earnings growth with net income rising to US$19.24 million from US$3.38 million year-over-year, suggesting potential for future stability in payouts.
Overview: Imperial Oil Limited is involved in the exploration, production, and sale of crude oil and natural gas in Canada with a market cap of CA$48.39 billion.
Operations: Imperial Oil's revenue is primarily derived from its Downstream segment at CA$57.32 billion, followed by the Upstream segment at CA$18.31 billion, and the Chemical segment contributing CA$1.40 billion.
Dividend Yield: 3.1%
Imperial Oil declared a quarterly dividend of C$0.72 per share, maintaining its consistent dividend growth over the past decade. The dividend is well-covered by both earnings (27% payout ratio) and cash flows (35.6% cash payout ratio), ensuring sustainability. Despite a modest 1% earnings growth, the stock trades at 52.5% below estimated fair value, offering potential value to investors. However, its 3.08% yield is lower than top-tier Canadian dividends but remains stable and reliable.
Overview: Magna International Inc. manufactures and supplies vehicle engineering, contract, and automotive components with a market cap of CA$12.87 billion.
Operations: Magna International Inc.'s revenue is primarily derived from its Body Exteriors & Structures segment at $16.54 billion, followed by Power & Vision at $15.20 billion, Seating Systems at $5.66 billion, and Complete Vehicles at $5.08 billion.
Dividend Yield: 5.8%
Magna International offers a stable dividend yield of 5.83%, supported by a low payout ratio of 47.8% and cash payout ratio of 36.5%, indicating strong coverage by earnings and cash flows. The company has consistently increased dividends over the past decade, though its yield remains below the top Canadian payers at 6.46%. Recent Q1 results showed improved net income to US$146 million, affirming its fiscal health and capacity to sustain dividends amidst share buybacks worth CAD 253 million.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSX:ARG TSX:IMO and TSX:MG.
