Thursday , June 24 2021

Attention TFSA Income Investors: 2 Dividend Growth Stocks That Still Look Over Sales

The rebound of the TSX index in January eliminated many of the big deals that were available on the market, but some high-quality dividend shares still look attractive today.

Let's now look at two companies that may be interesting for your portfolio.

TC Energy (TSX: TRP) (NYSE: TRP)

TC Energy is the new name of TransCanada. The management team decided it was time to move the company's branding to better reflect the overall business.

Given the challenges in Canadian oil and the difficulties faced by pipeline companies with major projects, this move is likely to make sense. TC Energy operates in Canada and has oil assets but is also a major natural gas and asset storage facility in the United States and Mexico. In addition, TC Energy has significant power plants.

Shares dropped from low levels from December to close to $ 48 to $ 55 per share, but they must have more chapters to offer buyers and hold investors. The company's $ 36 billion capital program is among the best in the industry, and management expects earnings and cash flow to rise enough to support the continued increase in dividends of 8-10% in the near future.

Current profit provides a yield of 5%.

Canadian Imperial Commercial Bank (TSX: CM) (NYSE: CM)

The CIBC reached $ 100 per share on 24 December. Investors who have stocked their stockings are already 9% and the recovery may have much more performance. In September, the CIBC was $ 124.

Concerns about the potential collapse of the Canadian housing market are likely to be exaggerated, especially now that the Bank of Canada and the US Federal Reserve could seem to be in their hands in 2019. ,

CIBC has made progress in its efforts to diversify its revenue stream by purchasing $ 4 billion worth of Chicago-based PrivateBancorp.

Shares continue to trade with less than 10 times the debt, which seems quite cheap in view of the Bank's profitability and the continuing strength of both the Canadian and the US economy.

At the time of writing, investors can earn a healthy 5% dividend yield with a shot at some nice increase in stock prices if stock markets continue to recover.

The bottom line

TC Energy and CIBC are high-quality TSX indices with rising dividends that offer above average yields. They are not as cheap as a month ago but still look attractive in current prices.

The fool Andrew Walker has no stance on the stocks.

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