We take a look at five under-the-radar Canadian stocks with significant yields and robust earnings growth (see table below).
|Agnico Eagle Mines||AEM||5||1.7%||q|
|Calloway Real Estate Investment Trust||CWYUF; CWYUF.PK||3||5.4%||m|
|Cervus Equipment Corporation||CSQPF; CSQPF.PK||5||3.7%||q|
|Eagle Energy Trust||ENYTF; ENYTF.PK||5||10.5%||m|
|BTB Real Estate Investment Trust||BTBIF; BTBIF.PK||5||8.4%||m|
Anginco Eagle Mines
Anginco Eagle Mines (AEM) is an international gold producer, with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. AEM earned $0.25 per share in Q2 of 2012 and is forecast to have earnings of $0.41 per share in Q3. Over the past five years, AEM has annualized revenue growth of 30%.
Calloway Real Estate Investment Trust
Calloway Real Estate Investment Trust (CWYUF.PK) is a real estate investment trust (REIT) that owns and manages shopping centers in Canada. It is a pure play on the relatively stable Canadian real estate market with minimal US exposure.
Calloway pays a monthly dividend of $0.13 USD, which translates to an annual yield of 5.4%. An important metric for evaluating REITs is if the adjusted funds from operations (AFFO) are covered by the dividend payments. In the second quarter of 2012, CWYUF had a payout ratio of 92% indicating that its earnings more than covered its dividend payout.
Cervus Equipment Corporation
Cervus Equipment Corporation (CSQPF.PK) is a diversified equipment dealer, which sells agricultural and industrial equipment throughout Canada. Its latest investor presentation can be found here. Between 2003 and 2011, profit has increased 37% on annualized basis, fueled by 33% annual growth in revenues. CSQPF pays a quarterly dividend, which represents an annual yield 3.7%.
Eagle Energy Trust
Eagle Energy Trust (ENYTF.PK) is a micro-cap energy trust focused on oil and natural gas production. It has a 10.5% yield with a dividend that is paid out monthly. ENYTF has a targeted payout ratio of 60%, as seen here. The most recent corporate guidance is annual funds flow from operations of 46.4 million USD based on oil at 88 dollars per barrel and natural gas at 2.68 on the NYMEX. Eagle Energy Trust is currently weighted 98% to oil and natural gas liquids versus 2% natural gas.
BTB Real Estate Investment Trust
BTB Real Estate Investment Trust (BTBIF.PK) owns 50 income-producing office, retail, and industrial properties in Quebec and eastern Ontario. BTBIF was recently listed on the Toronto stock exchange. As seen here, BBTIF pays out a monthly dividend with an annual yield of 8.4%. For the six months ending June 30, 2012, BTBIF earned 50 cents per share. Based on the monthly payout of $0.033 per share, this represents a payout ratio of just 40%.
Disclosure: I am long AEM.