September 16, 2014

Canadian Dividend Stocks in Engineering

 

I won’t lie to you, when we look at Canadian dividend stocks in the engineering sectors we are far from the Canadian banks and the Telecoms. However, Canadian engineering knowledge has a high reputation worldwide. Thanks to Quebec success stories SNC Lavalin (SNC) & Genivar (GNV). With the current enthusiasm around real assets, engineering stocks may be a great addition in your portfolio if you are looking for both dividends and growth from a Canadian stock.

 

Champlain bridgeWhat are “Real Assets”?

Real asset is a “new” asset classification for everything surrounding highways & bridges construction & maintenance. You can also add pipelines and urban construction to this asset classes. Infrastructure maintenance is a major concern not only for the Canadian Government but across the world. While our highways and bridges require immediate maintenance, emerging markets are in a big need of building solid infrastructure to support their economic growth.

 

This is where engineering firms will come into play: the world needs their expertise to build the right structure. Since both US Government and Canadian Government want to massively invest in their infrastructure, engineering firms will be the first companies to get contract in order to provide reports and plans.

 

A Major Competitive Advantage

Canadian engineering firms have been around for a while (SNC has been founded back in 1911) and one of their major advantage is the Canadian weather! One of the biggest engineering challenges is elaborating structures that will face Mother Nature with a smile. Since we have one of the most diversified and extreme weather in Canada, our firms are used to “plan for the worse”.

 

Great Perspectives

As I mentioned, the government’s interest in refreshing its bridges (Champlain Bridge in Montreal should be the first one) and emerging markets urging demand for bigger infrastructures will promise a bright future for those firm who are able to establish themselves as leader in the industry.

 

See our Canadian Dividend Engineering Stocks here:

SNC Lavalin (SNC)

Genivar (GNV)

IBI Group (IGB)

MKS (MKX)

 

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  1. [...] is one of Canada’s greatest engineering success stories, and has recently been recognized as one of Canada’s most stable and mature [...]

  2. [...] Inc. (GNV) is one of Canada’s top engineering picks for growth and value.  It offers services in the fields of multiple types of buildings, [...]

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