Aecon Group (TSX:ARE) is a Toronto-based company that provides construction and infrastructure development services to private and public sector clients in Canada, the United States, and around the world. Shares of this dividend stock have climbed 6.2% in 2021 as of mid-afternoon trading on November 12. The stock has dipped 11% month over month.
Canada’s economy has bounced back nicely in 2021 after the COVID-19 pandemic presented huge challenges in 2020. This has reinvigorated contractors and encouraged investment in infrastructure. Investors should look to target Aecon Group in this environment.
The company released its third quarter 2021 results on October 28. Revenue rose 12% from the prior year to $1.16 billion. Adjusted EBITDA and operating profit rose $27.3 million and $25.9 million, respectively, compared to the third quarter of 2020. New contract awards reached $682 million booked in Q3 2021 – up from $448 million in the previous year.
Revenue has climbed to $2.88 billion for the first nine months of 2021 – up from $2.56 billion in the year-to-date period in 2020. Meanwhile, adjusted EBITDA has declined marginally to $177 million.
Shares of this dividend stock possess a favourable price-to-earnings ratio of 18. The stock last had an RSI of 30. That puts Aecon Group right on the edge of technically oversold territory. It offers a quarterly dividend of $0.175 per share. That represents a solid 4% yield.
