Yahoo Finance 2 Smart Stocks to Splurge Your Christmas Bonus Money on in 2020
When it comes to spending your Christmas bonus money, there’s nothing better than buying high-quality dividend-paying stocks. Dividend stocks are a gift that keeps on giving. Investing in these stocks with your bonus money will allow you and your family to buy many more gifts in the future.
To this end, I am going to take a look at two stocks that you can consider for your investment portfolio. Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) and Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) are both stocks with excellent dividend yields. Both of these stocks offer plenty of promise.
Let’s discuss them to see whether or not you might want to consider adding them to your investment portfolio.
Brookfield Property Partners
Brookfield Properties operates as a separate entity from its parent company, Brookfield Asset Management. Brookfield operates in the real estate sector. Its portfolio consists of diversified real estate assets all over the world. The company can generate a stable flow of cash from its investments. Being a developer, owner, and investor, BPY is also able to create higher margins.
Brookfield Property stock trades at $24.75 per share at writing — highly undervalued based on its price-to-book ratio of just 0.85. One of the possible reasons why its share prices are down right now is that it operates solely in retail and office spaces. Significant investments in its portfolio are more prone to economic cycles compared to residential real estate.
The company has a host of redevelopment projects underway, while its assets are in top-notch locations all over the world. Brookfield Property Partners has been paying shareholders dividends at the rate of 5.09%, making it an attractive option to consider.
Algonquin Power & Utilities
Algonquin is a Canadian company operating in its utility sector, and it is one of the most promising stocks trading on the TSX right now. The company has been performing phenomenally well over the past few years, and it is up by almost 40% this year alone. The $9.96 billion market capitalization company is not one of the largest utility companies in the world. It is outperforming both the TSX utility sub-index and the TSX itself.
The stock has seen massive capital gains over the past five years, climbing more than 102% in share prices. Despite the substantial gains, Algonquin has been distributing reliable dividend payouts to its shareholders at a yield of 3.93% at writing. With a share price of $18.89, the company pays dividends of $0.141 per share every quarter to investors without fail.
Algonquin has plenty going for it in terms of fundamentals. The company is highly profitable. It has seen fantastic growth in the past few years, a profit margin of 22.70%, and a return on equity at 9.23%. With much better metrics than an average utility company stock, Algonquin has bright prospects in the coming year.
Foolish takeaway
What would you rather spend your money on? A new electric car or an investment opportunity that can allow you to earn more and grow your wealth? At such good dividend yields and reliable performances, I think both Algonquin and Brookfield Property Partners could be ideal stocks for you to consider this Christmas.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management and BROOKFIELD ASSET MANAGEMENT INC. CL.A LV. The Motley Fool recommends Brookfield Property Partners LP.
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