Payday rung on a calendar

Written by Christopher Liew, CFA at The Motley Fool Canada

TSX’s 12-day winning streak began in the fourth quarter. The index set a new record on October 21, 2021, closing at 21,212.39. High commodity prices and the recovery of the labor market are key factors in this impressive race.

Canadian investors looking to build up their savings or earn extra cash may benefit from the rising market. For example, the industrial sector is showing renewed vigor with its gain of 19.65% since the start of the year.

The main constituents, namely Bird building (TSX: BDT), Acadian wood (TSX: ADN), and Foreign exchange income (TSX: EIF), are buying opportunities for income investors. A position of $ 20,000 in each will generate $ 254 of passive income each month. Plus, all three are great scavenging games.

Leading manufacturer

Bill Ferreira, Executive Director of ConstruForce Canada, said: “The outlook for construction in Canada is strong for 2021 and well into the mid-decade thanks to gains in the residential and non-residential sectors. Bird Construction, a leading construction company, is expected to benefit from the growth in the industry.

The $ 546.62 million builder provides new construction construction services to commercial, industrial and institutional clients. Related services include industrial maintenance, repair, operation and heavy civil construction. Bird also offers mine support services, vertical infrastructure and skilled trades.

So far, in 2021, Bird has outperformed the TSX (+ 34.28% vs. + 21.68%). At $ 10.40 per share, the dividend yield is 3.74%. In the first half of 2021, construction revenue increased 65.6% to $ 1 billion compared to the same period in 2020. Net profit was $ 20.75 million, that is to say a growth of 207.5% year on year.

Strong demand

Acadian Timber investors are enjoying an 18.32% year-to-date gain in addition to the generous 6.33% dividend. Likewise, the performance of the company is reflected in the performance of the stock. In the first half of 2021, sales growth was 3.6%, although net profit climbed 672.2% to $ 11.7 million compared to the same period in 2020.

New Brunswick’s $ 303.86 million company supplies primary forest products. Management said the strong financial results were due to favorable operating conditions and stable demand for Acadian products. Notably, demand for softwoods and hardwoods remained strong in end-use markets.

Acadian expects strong demand and high prices for hardwood saw logs for the remainder of 2021. Demand for softwood, pulp hardwood and biomass is also expected to remain stable.

Winning strategy

Foreign exchange income is resistant to economic cycles due to its diversification strategy. The company has a market capitalization of $ 1.66 billion and has grown through disciplined acquisitions. It has 15 subsidiaries that operate in various industries. Services include medical evacuation transport, cargo handling, communication, and tower construction and installation, among others.

In the second quarter of 2021, total revenue increased by 32.2% compared to the second quarter of 2020. At the same time, it posted a net profit of $ 16.5 million compared to a net loss of 2, $ 66. According to Mike Pyle, CEO of EIC, the company plans to expand its existing operations, particularly in airlines. Larger contracts and accretive acquisitions should facilitate further growth, says Pyle.

Industrial stock is also among the TSX’s stable performances in 2021, with its gain of 24.38% year-to-date ($ 43.83 per share). Its total return over the past 18.75 years is 3,000.93% (20.1% CAGR). In addition, the dividend yield is lucrative 5.17%.

Value for money

You get what you pay for with the three dividend-paying stocks. Besides passive income each month, you can earn capital gains when their stock price rises further.

The post Raise $ 250 / month in passive income with these 3 actions first appeared on The Motley Fool Canada.

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Foolish contributor Christopher Liew has no position on any of the stocks mentioned. The Motley Fool owns shares and recommends ACADIAN TIMBER CORP.

2021


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