Sunday, September 07, 2014

Canadian Stocks Have Underperformed: Time to Buy Canada?

During the last year, the iShares MSCI Canada (EWC) exchange traded fund was up 16.9%, whereas the S&P 500 was up over 20%. In addition, the Canadian economic news has not been good lately. Canada had a net loss of 11,000 jobs in August, plus a loss of 111,800 private sector jobs. So from a contrarian view, is now the time to buy Canadian stocks.

One option is to own Canada stocks that pay dividends, which helps to reduce volatility and returns your investment faster. According to the free list of Canada stocks at, there are over a dozen Canadian companies that pay dividends.

The Bank of Montreal (BMO) is the fourth largest bank in Canada, based on assets and market capitalization. The stock trades at 13 times trailing earnings and 11 times forward earnings. Earnings for the latest quarter were flat on a 4.1% revenue rise. The stock yields 3.9%.

TransCanada (TRP) is n oil and gas pipeline company. The dividend payout rate it 3.6%. The trailing PE ratio is 26, with a forward PE of 22. Earnings spiked 14.5% for the latest quarter, on an 11.2% revenue boost.

Canadian National Railway (CNI) trades at 25 times trailing and 17 times forward earnings. Quarterly earnings jumped 18.1% on a 16.9% increase in revenues. The company has a yield of 1.4%.

To see a list of all the high yield Canadian stocks, which has the PE ratios, the forward PEs, the yields, and other data, go to

Disclosure: Author didn't own any of the above at the time the article was written. 


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