These two Canadian Dividend stocks are among the best stocks to buy in the week of April 8-12, as per analysts. These stocks offer a consistent dividend stream for income-seeking investors. Dividend-paying companies are usually well-established and have a solid financial background that enables them to reward shareholders with healthy dividends. Let’s look at the two companies with above-average dividend yields and a Strong Buy consensus rating.
Doman Building Materials Group Ltd. (TSE:DBM)
Doman Building Materials is one of North America’s largest producers of pressure-treated lumber products. It also distributes and produces a wide range of building materials, lumber, and renovation products.
DBM has consistently paid a regular quarterly dividend of C$0.14 per share, reflecting a yield of 6.93%. Its latest dividend is payable on April 12.
In Fiscal 2023, Doman Building’s total revenues fell 16.7% to $2.5 billion, mainly owing to decreasing lumber and materials prices compared to the previous year. Net earnings declined by 3.7% compared to FY22.
Is DBM Stock a Good Buy?
With six unanimous Buy ratings, DBM stock has a Strong Buy consensus rating on TipRanks. The average Doman Building Materials Group price target of C$10.29 implies 28.1% upside potential from current levels. In the past year, DBM stock has gained 28.7%.
Transcontinental (TSE:TCL.A)
Montreal-based Transcontinental, or TC Transcontinental, is a leading printing and flexible packaging company in the U.S., Canada, and Latin America. The company currently pays a regular quarterly dividend of C$0.225 per share, with the latest dividend payable on April 22.
Transcontinental’s dividend has increased at a CAGR of 7.5% from 2010 to 2023. TCL.A’s dividend represents a yield of 6.12%.
Coming to recent performance, the company’s revenue fell 3.8% year-over-year in Q1 FY24 due to lower volume in the Printing Sector while adjusted earnings per share increased by 79.2% compared to the prior year period. Despite lower revenue, the company was able to deliver solid earnings due to its cost reduction efforts, including employee layoffs. Transcontinental expects to reduce its overall headcount by 6% by the end of the second quarter.
Is Transcontinental a Good Buy?
On TipRanks, TCL.A stock has a Strong Buy consensus rating based on four Buys and one Hold rating. The average Transcontinental Class A share price target of C$18.30 implies 31.1% upside potential from current levels. TCL.A stock has lost 1.2% in the past year.
Key Takeaways
Investors looking for regular income can consider the above two stocks to boost their portfolio returns. Both stocks have earned a bullish view from analysts and are expected to offer an attractive upside over the next twelve months.
