Dividend stocks can add value to an investor’s portfolio, thanks to the regular income stream that they provide. Plus, most of these companies have sound financial backing and high growth prospects, which enables them to continue paying dividends in the long run. Today, we will look at the two best Canadian dividend stocks to buy in the week of March 18-22, according to analysts.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Not only do these companies boast above-average dividend yields, they also have a Strong Buy consensus rating and above 25% share price appreciation potential in the next twelve months.
PHX Energy Services Corp (TSE:PHX)
PHX Energy Services provides directional drilling and motor rentals, survey management, gyro surveying, and stream services in Canada, the U.S., and Albania. The company operates through Phoenix Technology, which boasts state-of-the-art drilling equipment that helps to reduce costs and operating risks, maximizes operational efficiencies, and improves the bottom line.
PHX is set to pay its next quarterly dividend of C$0.20 per share on April 15. This represents a yield of 7.31%, much higher than the sector average of 3.75%. In its latest results for Q4 FY23, PHX’s revenue rose 5% year-over-year to $165.33 million. Plus, the company repurchased and cancelled 1,322,100 common shares for $11.3 million through its ongoing Normal Course Issuer Bid program, thus, lifting shareholder value.
What is the Price Target for PHX Energy?
With three unanimous Buys, PHX stock has a Strong Buy consensus rating on TipRanks. The PHX Energy Services share price target of C$11.50 implies 29.9% upside potential from current levels. In the past year, PHX shares have gained over 26%.
Superior Plus Corp. (TSE:SPB)
Ontario-based Superior Plus operates through two divisions – Energy Distribution and Specialty Chemicals. The company is a leading provider of propane, compressed natural gas, renewable energy, and related products and services in North America.
SPB also boasts a handsome dividend yield of 7.39%, above the sector average of 2.99%. Its next dividend of C$0.18 per share is payable on April 15.
In Q4 FY23, Superior posted a 7.9% drop in revenues to $985.8 million. Meanwhile, earnings per share was flat at $0.27 per share. The company is highly optimistic about its Certarus acquisition completed in May 2023, which strengthened its position as the mobile low-carbon energy solutions provider.
Is Superior Plus a Good Buy?
With seven Buys versus two Hold ratings, SPB stock has a Strong Buy consensus rating on TipRanks. The Superior Plus share price target of C$12.94 implies 30.2% upside potential from current levels. Notably, SPB shares have lost 9.6% in the past year.
Key Takeaways
Investors seeking recurring income can consider the above two stocks to boost their portfolio. Both companies are involved in the ever-growing energy sector and have well-established business lines, which makes them earn analysts’ bullish ratings.
