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Value-Adding TSX Stocks

Terrence Jolly

High-growth may be important to some investors, whereas steady dividend payments or great value for money may be a deciding factor for others. There are many factors that make up a great investment. Today I’ve compiled a group of companies that possess impressive aspects in two or more fundamentals, causing them to be attractive investments for any investor.

Badger Daylighting Ltd. (TSX:BAD)

Badger Daylighting Ltd. provides non-destructive excavating and related services in Canada and the United States. Started in 1992, and currently headed by CEO Paul Vanderberg, the company employs 1,943 people and with the company’s market cap sitting at CAD CA$1.05B, it falls under the small-cap category.

BAD’s ability to more than double its earnings in the past, producing an outstanding triple-digit return to shareholders, paints an buoyant picture for the company. What’s more is, BAD’s upcoming commitments are met by its short-term assets, and its debt is adequately covered by its operating cash, portraying its strong financial capacity. Dig deeper into Badger Daylighting here.

TSX:BAD Income Statement May 17th 18

Bank of Montreal (TSX:BMO)

Bank of Montreal provides diversified financial services primarily in North America. Established in 1817, and run by CEO William White, the company currently employs 45,200 people and has a market cap of CAD CA$64.95B, putting it in the large-cap category.

BMO’s asset-to-equity ratio of 17x indicates a solid equity position, with an appropriate level of leverage for a financial company. In addition to this, BMO’s ample net income is able to cover all of its dividend payments, which has also been steadily increasing over time. Interested in Bank of Montreal? Find out more here.

TSX:BMO Historical Debt May 17th 18

Canadian Pacific Railway Limited (TSX:CP)

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. Founded in 1881, and headed by CEO Keith Creel, the company size now stands at 12,328 people and with the company’s market capitalisation at CAD CA$34.03B, we can put it in the large-cap stocks category.

CP’s ability to grow its earnings in the past at 55.84%, generating a strong triple-digit return on equity, is an optimistic signal for the future. In addition, CP has been able to reinvest its profits, as well as pay some out as dividends, which has also been steadily increasing over time. Dig deeper into Canadian Pacific Railway here.

TSX:CP Income Statement May 17th 18

For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.