Focus on the fact that the value returns to stocks over time. The trick is to practice dollar cost averaging strategies by acquiring additional stocks in strong companies while the market is down.
Here are two top TSX dividend stocks that you may want to buy in October 2020.
Lundin Mining Corporation share: optimistic about production growth
Lundin Mining Corporation (TSX: LUN) fell to $ 4.08 on the market sell off in March before rebounding to a 52-week high at $ 8.59. At the time of writing this article, investors are trading the mining stock for $ 8.06 per share. The annual dividend yield is low but respectable at around 2%.
Marie Inkster, President and CEO of Lundin Mining Corporation, commented on expectations for the second half of 2020 despite the risk of the COVID-19 pandemic:
“Our operations should improve in the second half of the year. Although we have reduced the production forecast for Candelaria for a full year, Eagle’s copper production has been increased and the cash cost forecast for Chapada and Eagle has been improved. The 2020 capital expenditure forecast for ZEP has increased slightly as minor work continues, which will make it easier to restart and ramp up construction activities when this happens.
The price / earnings ratio of this stock is quite high at 88.25, which indicates some risk in this investment. This stock is not selling for the best value for money. The company is optimistic about its future growth prospects, but no analyst can guarantee that this growth will materialize.
If you decide to buy this stock, be careful when slowly buying stocks to account for this risk. Also, remember to keep a long-term perspective on your investment decisions.
Algonquin Power & Utilities Corp Builds Renewable Energy Business
Algonquin Power & Utilities Corp (TSX: AQN) (NYSE: AQN) went from a 52-week high of $ 22.39 to a 52-week low of $ 13.84 on the March 2020 sell-off at 0ff. As of this writing, the stock is trading at $ 18.98 per share. The dividend yield is more than decent at 4.34% per annum.
Director General of APUC Arun Banskota had this to say about the utility company’s progress during the COVID-19 pandemic:
“We continue to run our 5 years $ 9.2 billion capital program and are progressing well on projects under construction. We are also pleased that, in line with our ESG commitment and our business and industrial growth strategy, we have entered into a framework agreement with Chevron in which APUC will seek to develop, build and operate renewable energy solutions by leveraging the Chevron’s global operations to reduce their carbon. imprint over the next few years. “
Given the economic weakness and lingering uncertainty surrounding the COVID-19 pandemic, savvy shareholders should consider safe investments in utility stocks. Algonquin offers additional benefits as it invests in future growth through a renewable energy partnership with Chevron. If you want to buy this stock for your portfolio, now would be a good time while it is still below its 52 week high.
As with any investment, fully study your decisions and slowly collect shares. You can find more success by buying on days when the market is down.
Take a look at these top TSX stocks to buy in October:
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Fool contributor Debra Ray has no position in any of the stocks mentioned.