Three Dividend Giants With Double-Digit Upside

It’s rare that you see an income-focused company with high growth potential. So when the opportunity does come, it’s best that investors take advantage of it. Due to the recent sell-offs in December, investors are left with a bundle of income companies that are significantly undervalued.

Here are three of them that have piqued my interest to kick off 2019.

TransCanada Corp. (TRP)

TransCanada Corp

TransCanada is an energy company with major interests in gas and liquids pipelines. Its most notable asset is the Keystone pipeline. And unless you’ve been living under a rock, you probably know the controversy the Keystone is causing.

The stock price has fallen from July 2018 highs of $59.41 and currently sits just above the $50 mark. The company has a massive $36 billion dollar development backlog, including its expansion of its Nova Gas Transmission System. The Keystone has faced significant regulatory issues, but if the project does end up going through, it would be a huge bonus for current and prospective investors.

Because of its fall in share price, its yield now sits at a very generous 5.60%. And to add to this, analysts expect a very strong year from the pipeline company in 2019. With a one-year target estimate of $63.76, analysts are giving the company 27% upside potential for 2019.

For its dividend yield alone, TransCanada is a solid investment. The fact that analysts are predicting a 27% upside in share price for 2019 is just icing on the cake. 

The Bank Of Nova Scotia (BNS

Scotiabank

I recently mentioned The Bank Of Nova Scotia in my best financial stocks in the country article, and for good reason. 

In just the final quarter of 2018, the financial sector lost almost 13% of its value. Fears of the Canadian housing market being a bubble about to burst and rising interest rates bringing concerns of mortgage and loan defaults have brought financial stocks down. But the thing is, banks are in no worse shape. Write-offs remain in line with historical averages.

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Disclosure: Long TRP.TO.

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