Experts and analysts are starting to raise alarms over the state of the Canadian economy as we head into the fall. There has been a rebound in the later summer.
However, the unemployment rate remains high and the winding down of crucial social programs could create a domino effect that will be unpredictably and potentially devastating.
Canadian investors may want to protect their portfolios in this environment.
Shaw Communications (TSX:SJR.B) is one of my top dividend stocks to target right now. Its shares have climbed 6.2% over the past three months as of close on August 31. It released its third quarter 2020 results on July 10.
Shaw’s consolidated adjusted EBITDA increased 15.3% year-over-year and free cash flow rose 20.2% to $595 million. It achieved strong wireless revenue growth of 17% and adjusted EBITDA growth of 90.6%. The company has demonstrated how crucial reliable telecom providers have been during the COVID-19 pandemic.
Like utilities, telecom stocks are also dependable options for investors. In the year-to-date period, total revenue has increased 1.7% to $4.05 billion and adjusted EBITDA is up 11% to $1.79 billion.
Shares of Shaw last possessed a solid price-to-book value of 2.0. It last paid out a monthly dividend of $0.09875 per share. This represents a 4.8% yield. Shaw Communications is a stable option that still provides a solid and reliably monthly dividend. It is worth targeting in this uncertain environment.
