From Financialpost · · 1m 10s
Defence Investment Agency Drives TSX Stocks
National Bank adds Atco and three stocks to dividend all-stars portfolio.
In brief
National Bank adds Atco and three stocks to dividend all-stars portfolio. National Bank raised price targets for Atco, Brookfield, MCAN Mortgage and Open Text after their dividend growth and strategic moves. Originally reported by Financialpost.
Atco Shares Jump
Atco Ltd. shares rose 10 per cent this week before paring gains after announcing a $14.3 billion sale of its Canadian Utilities Inc. subsidiary to Emera Inc.
“Atco Ltd. (ACO/X:TSX) jumped 10 per cent this week before paring some of those gains after it announced Oct. 5 that it was selling its Canadian Utilities Inc. subsidiary to Emera Inc. (EMA:TSX) for $14.3 billion.”
Price Targets Hiked
National Bank raised Atco's price target to $93 from $79, while RBC and TD Cowen increased theirs to $94 and $98 respectively.
“National Bank of Canada Capital Markets analyst Patrick Kenny hiked his price target for the shares of what he dubbed the "new Atco" to $93 from $79, saying the company will have $700 million at hand including an injection from Emera, plus $250 million in Emera shares as part of the deal.”
Dividend All-Stars Update
National Bank added four stocks to its dividend all-stars portfolio with an average yield of 4.9 per cent, outperforming the S&P/TSX composite index.
“National Bank of Canada Capital Markets just updated its portfolio of dividend all-stars for the second half, which carries an average yield of 4.9 per cent, compared with the yield on the 10-year Government of Canada bond of approximately four per cent.”
Brookfield Added
Brookfield Asset Management Ltd. made the cut with a dividend yield of 4.5 per cent and earnings growth in the high teens.
“Brookfield Asset Management Ltd. (BAM:TSX) made the cut on an earnings growth outlook in the high teens and a dividend yield of 4.5 per cent, which, since 2022, is up approximately 57 per cent.”
MCAN Mortgage Added
MCAN Mortgage Corp. offers better positioning in adverse credit scenarios with a five per cent dividend yield.
“MCAN Mortgage Corp. (MKP:TSX) offers "better positioning in an adverse credit scenario." It has a yield of five per cent and a target price of $27.”
Open Text Added
Open Text Corp. has a long track record of dividend increases since fiscal year 2013 with a 4.8 per cent dividend yield.
“Open Text Corp. (OTEX:TSX) has a long track record of dividend increases since fiscal year 2013. The company has a dividend yield of 4.8 per cent and National expects it to sustain that.”
What it means
National Bank raised price targets for Atco, Brookfield, MCAN Mortgage and Open Text after their dividend growth and strategic moves.
