3 TSX Dividend Stocks Hit 52-Week Highs

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Investors who have these three TSX dividend-paying stocks in their investment portfolios are likely to be happy campers. They recently hit 52-week highs! Should we buy them, keep them or sell them? Here are some insights from analysts to help you in your decision making.

Fairfax Financial Holdings

Fairfax Financial Holdings (TSX:FFH) is sometimes called a smaller version of Berkshire Hathaway. Like Berkshire, it is a holding company that has an insurance business. FFH also aims for a high rate of return on invested capital to create long-term shareholder value.

The beta of the stock roughly matches the beta of the market. Like most stocks in the market, it took a hit during the pandemic crash. However, it has roughly doubled since the bottom of the stock market crash in early 2020. Over the past year, its returns have also been comparable to those of Berkshire Hathaway. FFH stock is currently yielding around 1.9%.

FFH Total Return Level Chart

FFH and BRK.B Total Return Level Data by YCharts

John O’Connell’s comment on FFH in October 2021 was not kind, however:

“Prem Watsa engages in market timing, unlike Warren Buffett. Fairfax is a black box in what it owns. Tough business. Stuck in the mud for a while. If you want to look for good capital allocators in the [property and casualty insurance] company, look at BRK.B, which he owns.

John O’Connell, Chairman and CEO of Davis Rea

Royal Bank Stocks

Quality companies are meant to recover from market corrections. Stocks of major Canadian banks made a big comeback after the pandemic crash. As a leading bank with leading positions in a range of financial services in Canada, Royal Bank of Canada (TSX:RY)(NYSE:RY) is no exception.

It has appreciated about 120% since the bottom of the stock market crash and now has the largest market capitalization of the major Canadian banks. Its market capitalization is $208 billion.

Over the past 52 weeks, the stock dividend has returned almost 43%! Bank stocks have long been a staple in dividend portfolios. Currently, it offers a respectable yield of 3.3%.

RY Total Return Level Chart

RY Total Yield Level Data by YCharts

Here are David Driscoll’s comments on RBC stocks this month:

Rising interest rates will improve net interest margins (the spread between mortgages issued and deposits received). Dividend increases have taken place across the industry. Well-diversified company with operations in the United States and internationally. Avoid buying too many bank stocks as this exposes investors to sector risk.

David Driscoll, President and CEO of Liberty International

Brookfield Infrastructure

While Royal Bank shares may be staple banking stocks for many, Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) could be a core utility holding company. Since BIP was separated from Brookfield Asset Managementit increased its cash distribution every year for more than a decade.

Based on the way he runs his business, investors can expect more dividend increases for many decades to come. Its cash flow is sustainable – around 90% is regulated and contractual and 70% is indexed to inflation. Currently, it gives about 3.5%.

Here is a comment on Varun Anand’s utility as of November 2021:

“A diversified large-cap infrastructure play, led by one of the top asset managers [Brookfield Asset Management]. Excellent construction work on a global scale. Better ways to play infrastructure by owning individual names versus a conglomerate. Good candidate if you want to sleep at night and collect the dividend.

Varun Anand, Vice President and Senior Portfolio Manager at Starlight Capital

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