National Bank's Top High-Yielding Stock PicksEarlier this week, National Bank released its 2019 Dividend All-Stars portfolio, which consists of 24 high-yielding securities. Over the past year, the portfolio has delivered a respectable total return of over 7 per cent, outperforming the S&P/TSX composite index, which rallied 4 per cent over the same investment period.
Highlighted below is a summary of the firm’s top high yielding stock recommendations :
Transcontinental Inc. (TCL.A-T)
Montreal-based Transcontinental is Mr. Shine’s other high-yield stock recommendation; however, this stock has a higher potential total return. He has a target price of $25. He remarks, “TCL’s confident that it can extract more than the U.S.$20-million of savings initially promised from last year’s Coveris purchase. While revenue growth at Coveris isn’t expected until after fiscal 2019, synergies will serve as a key driver of segment margins which we see expanding from 11.9 per cent in fiscal 2018 to 13.5 per cent in fiscal 2019 and 14.5 per cent in fiscal 2020.” The stock has a current dividend yield of 4 per cent.