In the automotive parts space, Canadian company Magna International Inc. (NYSE:MGA) has been a great dividend option for investors for years now. The company’s business has remained solid, and the company’s stock price has rebounded nicely in recent months, providing momentum investors with a real reason to dive into this dividend name now.
With a dividend yield of 2.3% at the time of writing, this is not a stock to write home about in terms of yield. That said, the company’s yield has come down in recent weeks due to the company’s steady and consistent stock price increase from pandemic-driven lows in March. Since the company hit its 52-week low in March, shares of Magna have more than tripled as investors became less concerned with the idea that auto sales would drop precipitously as a result of the pandemic.
Instead, Magna’s recently announced partnership with LG Electronics Inc. to spin off some of Magna’s electric parts business has been cheered by financial markets.
Involving a world leader in EV technology in the company’s EV-related parts business only makes sense, and as part of the deal, Magna retains a 49% stake in the joint venture, meaning Magna shareholders still receive a significant portion of the upside of this joint venture over the long-term. I really like the moves the company’s management team have made in the wake of the pandemic, and believe this is one of the best Canadian dividend stocks for investors out there right now.
Invest wisely, my friends.
