These 3 Stocks Are Begging to Be Bought

Are you ready to add a new stock to your portfolio? If so, Rogers Sugars Inc. (TSX:RSI), Aimia Inc. (TSX:AIM), and IGM Financial Inc. (TSX:IGM) are three of the market’s top options.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn moresdf

One of the most difficult tasks we face as self-investors is finding the right stock at the right price when we are ready to buy. Well, if you are ready to add a new stock to your portfolio today, I have found three dividend-paying stocks that are trading at inexpensive valuations compared with both their five-year averages and their industry averages, so let’s take a closer look at each to determine which would fit best in your portfolio.

1. Rogers Sugars Inc.

Rogers Sugars Inc. (TSX:RSI) is one of Canada’s largest manufacturers and distributors of sugar products. At today’s levels, its stock trades at 13.5 times fiscal 2015’s and 2016’s estimated earning per share of $0.34, which is inexpensive compared with its five-year average price-to-earnings multiple of 14.5 and the industry average multiple of 25.8. Also, the company pays a quarterly dividend of $0.09 per share, or $0.36 per share annually, giving its stock a 7.8% yield.

2. Aimia Inc.

Aimia Inc. (TSX:AIM) is one of the world’s largest providers of marketing and loyalty analytics services. At current levels, its stock trades at 17.9 times fiscal 2015’s estimated earnings per share of $0.80 and 15.5 times fiscal 2016’s estimated earnings per share of $0.92, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 65.5 and the industry average multiple of 25.7. In addition, the company pays a quarterly dividend of $0.19 per share, or $0.76 per share annually, which gives its stock a 5.3% yield.

3. IGM Financial Inc.

IGM Financial Inc. (TSX:IGM) is one of Canada’s largest providers of personal financial services, and it is one of the leading managers and distributors of mutual funds and other managed asset products. At today’s levels, its stock trades at 12 times fiscal 2015’s estimated earnings per share of $3.36 and 11.3 times fiscal 2016’s estimated earnings per share or $3.57, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 15.9 and the industry average multiple of 62.2. The company also pays a quarterly dividend of $0.5625 per share, or $2.25 per share annually, giving its stock a 5.6% yield.

Is now the right time to add a new stock to your portfolio?

Rogers Sugars, Aimia, and IGM Financial represent three of the best long-term investment opportunities in their respective industries. Foolish investors should strongly consider beginning to scale in to positions in one or more of them today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

growing plant shoots on stacked coins
Dividend Stocks

5 Dividend Stocks to Buy With Yields Upwards of 5%

These five companies all earn tonnes of cash flow, making them some of the best long-term dividend stocks you can…

Read more »

funds, money, nest egg
Dividend Stocks

TFSA Investors: 3 Stocks to Start Building an Influx of Passive Income

A TFSA is the ideal registered account for passive income, as it doesn't weigh down your tax bill, and any…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 of the Safest Dividend Stocks in Canada

Royal Bank of Canada stock is one of the safest TSX dividend stocks to buy. So is CT REIT and…

Read more »

Growing plant shoots on coins
Dividend Stocks

1 of the Top Canadian Growth Stocks to Buy in February 2023

Many top Canadian growth stocks represent strong underlying businesses, healthy financials, and organic growth opportunities.

Read more »

stock research, analyze data
Dividend Stocks

Wherever the Market Goes, I’m Buying These 3 TSX Stocks

Here are three TSX stocks that could outperform irrespective of the market direction.

Read more »

woman data analyze
Dividend Stocks

1 Oversold Dividend Stock (Yielding 6.5%) to Buy This Month

Here's why SmartCentres REIT (TSX:SRU.UN) is one top dividend stock that long-term investors should consider in this current market.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

Better TFSA Buy: Enbridge Stock or Bank of Nova Scotia

Enbridge and Bank of Nova Scotia offer high yields for TFSA investors seeking passive income. Is one stock now undervalued?

Read more »

Golden crown on a red velvet background
Dividend Stocks

2 Top Stocks Just Became Canadian Dividend Aristocrats

These two top Canadian Dividend Aristocrats stocks are reliable companies with impressive long-term growth potential.

Read more »