All good things come to an end. This was certainly true for Canadian stocks on Monday as they broke a four-day rise to close slightly under opening levels. This was largely predictable, as stock performance followed similar downward patterns across global equity markets shaken up by China’s stock market crash. Despite what seem like dire circumstances, dividend-paying stocks tend to know how to weather the storm.
Continued concerns over a possible economic collapse in the Middle Kingdom have international investors more than a little worried as this trading week continues. Much will ride on more economic reports coming out tomorrow, including the much-awaited jobs report.
But not all is lost, as there are still several undervalued dividend stock picks to choose from. Here are five income companies with a positive stock price forecast this month.
Top 5 Dividend Stocks That Can Yield Up To 14.7%
Cenovus Energy Inc. (NYSE:CVE)
Cenovus Energy Inc. (NYSE:CVE)is an integrated oil and gas company operating out of Calgary, Alberta. The company is hovering around -29.55% since the beginning of 2015, but has rebounded -54.27% from its recent 52-week high. The energy giant appears to have found its bottom, and the numbers indicate that it’s rising.
Cenovus’ average one-year price target of $24.09 is at a 2.11% premium to the company’s 52-week low. The highest price its stock has hit in the last 52 weeks was $31.64, and its latest closing price was $14.47. Exchange volume is up, as approximately 2.87 million shares of its stock have been exchanged at the counter in the last trading session.
Enbridge Inc. (NYSE:ENB)
Enbridge Inc. (NYSE:ENB) is a North American oil and gas distributor. Its stock is currently one of the most undervalued buys on the market, with a strong dividend. Though its share value has decreased by approximately 18% as compared to its 52-week high, this is largely due to the effects of volatile energy markets translating to a lower bottom line for the company. Enbridge has increased its dividend payout to shareholders for the last 19 consecutive years.
The stock price forecast for Enbridge is in fact quite favorable, as cash flow from operations is expected to grow by an average 18% through to 2018.
This pipeline leader’s robust business model, historically good performance, positive stock price forecasts, and 3.5% dividend payment combine to make it a strong stock pick.
Barrick Gold Corporation (NYSE:ABX)
Barrick Gold Corporation (NYSE:ABX) is beginning to look like a great undervalued buy at the moment. As gold prices surged in July, the company and other gold producers rode a solid wave along with it. Gold is still slated to go up even further, which means increased profits for Barrick, but the company will still benefit even if gold prices stay at their current level.
Barrick has slashed its dividend payment and has begun a process to sell off assets, in line with its plan to reduce expenditure by $2.0 billion next year. While the Canadian gold producer still has to tighten its belt, today it is a more efficient and better-run company which is better positioned to respond to the current gold price market.
Pengrowth Energy Corporation (NYSE:PGH)
Pengrowth Energy Corporation (NYSE:PGH) is a Canadian oil and gas producer based out of Calgary, Alberta. The company recently displayed bullish movements with a gain of 13.08%, ending its downward trend and currently hovering at $1.62.
The company is switching to a quarterly dividend payout of $0.01 per share, sliding down from a previous monthly payout of $0.02, citing as the oil price collapse continues to hammer away at the company.
Manulife Financial Corporation (NYSE:MFC)
Manulife Financial Corporation (NYSE:MFC) is a Canadian insurance company and financial services provider. It’s currently a strong performer at $15.44, trading five percent higher than its 52-week low of $14.26. The company’s market cap stands at a healthy $31.99 billion.
Manulife is currently down -19.54% from its peak, but has reversed its recent downward trend. Its consensus price target stands at $26.95, and its price to earnings (P/E) ratio is 13.99, which is well below a one-year high of $20.17. The company’s share volume is 2.82 million shares, which is considerably higher than the average of 2.17 million.