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4 Dividend Stocks Analysts Believe Are About to Burst!

·4 min read
Man holding magnifying glass over a document

Insider trades can tell Motley Fool investors a few things. While it’s not a sure sign that a company is bound to do well, it does tell us whether there is confidence in the future of the stock. Today, I’ll be looking at four dividend stocks that have made recent share repurchases and that could be good additions to your portfolio.

Mullen Group

The first of the dividend stocks to watch is Mullen Group (TSX:MTL). This trucking and logistics company recently saw the repurchasing of over 554,400 shares between June 1 and July 14. This came out to about $12.95 per share, which gave back $7 million to shareholders.

Shares in the company at up 63% in the last year but have recently dropped by 7% in the last few weeks. The drop came after the acquisition of Harris Transport, a Canadian trucking business that would add about $25 million in revenue. It’s one of the more average dividend stocks, with a dividend yield of 3.84%. Yet analysts also believe it’s due to climb in share price by an average of 28% in the next year. So, it could be worth it for Motley Fool investors to check it out further.

CI Financial

CI Financial (TSX:CIX) recently repurchased over 2.7 million shares between June 3 and June 25. The average price was at about $22.31, which returned about $60 million to shareholders. This came after the company also repurchased 6.6 million shares for $112.7 million back in the first quarter, so before March 31. It was also repurchasing all through April and May.

Meanwhile, the company announced a strong earnings report recently, with the strongest net sales in six years at $530 million in net flows in its Canadian retail asset management. It now has assets exceeding $300 billion for the first time in company history. The company also announced the acquisition of a wealth management asset for $7.1 billion. With all this repurchasing, clearly, the company thinks there is a future to be had. Shares are up 32% in the last year, with an average potential upside of 12.5% for the next year. Motley Fool investors can pick up this stock with a 3.17% dividend yield.

The North West Company

If you’re looking for dividend stocks to come back with the economic rebound, definitely consider The North West Company (TSX:NWC). This retail company of food and everyday items recently repurchased about 72,000 shares at an average price of about $35.46. Between June 7 and June 30, this came to a total of $2.5 million in share repurchasing for shareholders. It also came on top of a further repurchasing of 155,570 back in the first quarter before April 30 for a total of $5.2 million. And it continued repurchasing through May and June.

It’s likely that management believes there is untapped future wealth in this company, with the economy due to rebound. Shares are up 24% in the last year and trading at all-time highs. Yet analysts don’t think it’s going to rise much higher. So, it seems as if management knows something we don’t. But if you think it’s due for a rebound, then you can pick up this stock with a dividend yield of 3.94%.

Element Fleet Management

Finally, for Motley Fool investors seeking a way to invest in electric vehicles (EVs), you might want to consider Element Fleet Management (TSX:EFN). The largest automotive fleet manager in the world, the company has recently partnered with Qmerit to transition to EVs. This would create the largest network of EV chargers in North America.

The company has been repurchasing shares throughout the last month. Between June 1 and June 30, it bought 5.4 million shares costing about $13.88 each. This totalled returning $75 million to shareholders. Shares are already up 46% in the last year, but analysts think it could rise another 25% on average, with many listing it as a strong buy. Furthermore, you can lock in a dividend yield of 1.87% as of writing. That makes this one of the best dividend stocks for future investment!

The post 4 Dividend Stocks Analysts Believe Are About to Burst! appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends MULLEN GROUP LTD. and THE NORTH WEST COMPANY INC.

2021

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