As we move into the fall, investors looking for buying opportunities that should perform well seasonally in this new month have a lot of work ahead of them. After all, this year is a bit different from previous years. We are (hopefully) emerging from the pandemic, with increased optimism leading to skyrocketing stock prices.
That said, expectations also point to the Federal Reserve starting to shrink before the end of this year. This move should increase bond yields, causing several dividend shares less valuable (at least in theory).
Here are two income-paying stocks that I think they have the ability to beat later this year.
Top Buying Opportunities: Algonquin Power
Algonquin Power (TSX: AQN)(New York Stock Exchange: AQN) it has been one of the buying opportunities that I have been banging on the table for years. In fact, this stock continues to hold excellent value, even as stocks continue to rise.
Well, Algonquin has been able to match its stock price growth by raising its dividend accordingly. This company 4.4% dividend yield It is among the highest quality in the utility sector. This company pays its dividends in US dollars and earns most of its income in US dollars, making Algonquin a great stock for those seeking geographic diversification.
Additionally, Algonquin’s growing exposure to renewables makes this a utility stock built for the future. Algonquin doesn’t just care about your short and medium term cash flows. The company has a plan to transition to a green future and be the preferred supplier. That is something I can endorse.
When it comes to consistency and stability, Algonquin remains one of the buying opportunities that I think investors should consider at this time.
In fact, this great Canadian bank has had a pretty shaky couple of years. Investors have pushed Scotiabank shares to near record highs this year, before broader sales hit the sector following policy statements made by the Trudeau campaign.
Those concerned about the state of the Canadian banking sector shouldn’t be. This is a sector that has been through some pretty tough economic times in the past. Consequently, Scotiabank shares are among the top buying opportunities it was hitting the table on last year after the pandemic.
In any kind of economic weakness, Scotiabank stocks are one of those to add along the way. This is a basic long-term holding that should work very well from a total return perspective. Those with long-term investment horizons would do well to rally stocks from weakness in the future.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool advisor or premium service. We are Motley! Questioning an investment thesis, even one of our own, helps us all to think critically about investing and make decisions that help us be smarter, happier, and wealthier, which is why we sometimes post articles that may not be online. with recommendations, ratings or other content. .
Foolish collaborator Chris MacDonald has no position in any of the actions mentioned.