The Canadian market has shown robust performance, with a 4.0% increase over the last week and a 12-month gain of 12%, alongside expectations for earnings to grow by 15% annually in the coming years. In this context, high-yielding dividend stocks can be particularly appealing for investors looking for potential income in addition to capital appreciation.
Overview: Leon's Furniture Limited, a Canadian retailer specializing in home furnishings, mattresses, appliances, and electronics, has a market capitalization of approximately CA$1.57 billion.
Operations: Leon's Furniture Limited generates CA$2.50 billion in revenue primarily from the sale of home furnishings, mattresses, appliances, and electronics.
Dividend Yield: 3.1%
Leon's Furniture Limited, with a dividend of CA$0.18 per share as of June 2024, demonstrates moderate financial health in its recent earnings report. The company posted a revenue increase to CA$562.25 million and net income growth to CA$18.82 million in Q1 2024 compared to the previous year. Despite this positive trend, the dividend yield remains low at 3.09%, underperforming when compared to top Canadian dividend payers. Furthermore, recent executive changes, including new appointments for CFO and a board director position, signal potential shifts in corporate strategy which could impact future performance and stability of dividends that have shown volatility over the past decade.
Overview: PHX Energy Services Corp. offers horizontal and directional drilling services, rents out performance drilling motors, and sells equipment and parts to oil and natural gas companies across Canada, the U.S., Albania, the Middle East, and other global regions, with a market cap of approximately CA$463.78 million.
Operations: PHX Energy Services Corp. generates CA$656.44 million from its horizontal oil and natural gas well drilling services.
Dividend Yield: 7.7%
PHX Energy Services offers a 7.69% dividend yield, ranking well above the Canadian market average of 6.54%. Despite this, its dividends are not sustainably covered by earnings or free cash flow, with a high cash payout ratio of 138.2%. The company's dividend history shows volatility and unreliability over the past decade, although dividends have increased within that period. Recent affirmations include a quarterly cash dividend of CA$0.20 per share payable in July 2024, despite earnings declines noted in Q1 2024 reports with net income dropping to CA$17.45 million from CA$22.42 million year-over-year.
Overview: Total Energy Services Inc. is an energy services company with operations mainly in Canada, the United States, and Australia, boasting a market capitalization of approximately CA$369.82 million.
Operations: Total Energy Services Inc. generates revenue through four primary segments: Well Servicing (CA$93.37 million), Contract Drilling Services (CA$286.01 million), Compression and Process Services (CA$397.05 million), and Rentals and Transportation Services (CA$82.87 million).
Dividend Yield: 3.7%
Total Energy Services' recent dividend declaration of CA$0.09 per share, payable on July 15, 2024, reflects a stable quarterly commitment despite a drop in Q1 earnings from CA$24.04 million to CA$15.48 million year-over-year. With a payout ratio of 40% and cash payout ratio of 17.8%, dividends are well-covered by both earnings and cash flow, though the company's dividend yield at 3.73% trails the top Canadian payers at 6.54%. Historically, dividend reliability has been inconsistent over the past decade.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
