Yahoo Finance Invest in Infrastructure: Buy These 3 Stocks
When the Liberal government won a majority in 2015, it promised to rebuild Canadian infrastructure in a bid to reinvigorate the broader economy. The government also promised to spend over $20 billion on the development of green infrastructure.
The federal government has taken a more active role in private infrastructure plans since the election. This has made for some awkward negotiations following the political shakeups seen in British Columbia and Alberta, as a number of key pipeline deals have been at risk of being scuttled.
On September 12, Finance Minister Bill Morneau reiterated the intention of the government to invest more than $180 billion in infrastructure over the next 11 years. Although how this money will be spent remains unclear, let?s take a look at some companies that could benefit once the plan gets underway.
WSP Global Inc.
WSP Global Inc. (TSX:WSP) is a Montreal-based management and consultancy services company. WSP Global works with public and private planners, as well as other entities, to provide solutions with a focus on restoring the natural environment. The company released its second-quarter results on August 9. Revenue was up 11% to $1.7 billion, and net earnings increased 20.3% to $62.8 million. The board declared a quarterly dividend of $0.375 per share, representing a dividend yield of 2.9%.
WSP Global is one of the top consultancy firms in the world. Once the Canadian government moves forward with the planned record investment in infrastructure, the firm could play a big role in planning and development.
Stantec Inc.
Stantec Inc. (TSX:STN)(NYSE:STN) is an Edmonton-based consulting company with over 22,000 employees and 400 locations in North America. The stock is up 1.2% in 2017 and 14% year over year. The company has a large stake in energy solutions; the election of Donald Trump in 2016 served as a boost under the supposition that the administration would move forward with its pro-growth and pro-energy policies.
Stantec released second-quarter results on August 9. Revenue increased 26% to $1.05 billion and adjusted EBITDA experienced 22% growth to $18.9 million. The stock offers a dividend of $0.12 per share, representing a dividend yield of 1.5%.
Enbridge Inc.
Enbridge Inc. (TSX:ENB)(NYSE:ENB) has been in the headlines quite a bit recently. On September 11, the company was faced with a challenge from Minnesota?s Department of Commerce regarding its Line 3 expansion. The Ontario government also served up some bad news for Enbridge, as it is now in the process of reviewing the East-West Tie Line because of higher-than-expected costs.
In spite of recent disappointments, the sheer volume of projects Enbridge has in its pipeline makes it a top prospect to benefit from public and private infrastructure planning. The stock has fallen 11.7% in 2017 and is down 14.1% year over year. The aforementioned headlines and oil?s poor performance have contributed to the decline, but the stock still boasts a 4.9% dividend yield for investors seeking income in their portfolios. Even with all of the noise, I still like Enbridge going forward.
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Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.
Announcing: Our #1 TSX pick for the AI revolution!
Bay Street and Wall Street experts agree: The AI revolution is set to be "bigger than the internet." That's why Iain Butler and the Stock Advisor Canada team have just released a brand-new report detailing their #1 TSX pick poised to profit from this next tech tidal wave.
Discover their #1 TSX pick now. This could be your chance to get in on the ground floor!
Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.
