TELUS Corp.

(TSX: T, NYSE: TU)

Dividend Yield: 4.2%

Recent Price: C$40, US$29

Fair Value: C$46, US$33

One of the top telecommunications operators in Canada, Telus focuses on the fast-growing areas of mobile telecommunications and high-speed Internet.

The company has an exceptional dividend payment track record with prospects of further growth ahead. Although the balance sheet is somewhat stretched, the business continues to produce ample cash flow, which is used to finance capital expenditures, dividend payments and the share repurchase program.

The recent entry of a fourth national mobile competitor, Shaw Communications, had investors worried about the increased competition. We believe these concerns are overblown and have produced a good buying opportunity.

Innvest REIT

(TSX: INN-U, OTC: IVR.F)

Dividend Yield: 7.9%

Recent Price: C$5.03, US$3.64

Fair Value: C$6.31, US$4.50

This Canadian hotel landlord has well-known brands such as Fairmont, Comfort Inn and Delta. After management and board changes in 2014 and 2015, the company improved corporate governance, sold underperforming properties and refurbished a considerable portion of the hotel portfolio.

Meanwhile, the weak Loonie is drawing tourists to Canada, and Canadians are vacationing more at home. Third-quarter results indicated a substantial improvement in the REIT’s key operating metrics, although more work needs to be done. This opportunity comes with considerable upside potential and some risk.This Canadian hotel landlord has well-known brands such as Fairmont, Comfort Inn and Delta. After management and board changes in 2014 and 2015, the company improved corporate governance, sold underperforming properties and refurbished a considerable portion of the hotel portfolio.

WestJet Airlines

(TSX: WJA, OTC: WJAVF)

Dividend Yield: 3.4%

Recent Price: C$16, US$11

Fair Value: C$20, US$15

WestJet Airlines is one of the top low-cost airlines in North America with operating and financial metrics that rival the best in the industry. Despite delivering record profits in the 2015 fiscal year, WestJet had a poor result for the final quarter as well as a negative outlook for the first quarter of 2016, leading to a sharp sell-off of the stock.

There are concerns about airline capacity growth as the Canadian economy shows signs of weakness, especially in the energy-producing provinces. Management, though, is moving capacity away from the depressed Alberta market to regions with stronger growth and reports strong demand for the carrier’s newly launched routes to the U.K. as tourists take advantage of the weaker Canadian dollar.

The short-term outlook for the business is unfavorable, but the sound long-term track record of profitable growth, good cash flow and a strong balance sheet indicate that better days lie ahead. Meanwhile, the stock is dirt cheap and offers a safe 3.4% dividend yield.

Inter Pipeline Ltd.

(TSX: IPL, OTC: IPPLF)

Dividend Yield: 6.5%

Recent Price: C$22, US$16

Fair Value: C$28, US$20

Inter Pipeline, one of the smaller western Canadian operators, provides crucial infrastructure to oil and gas producers to move their products from the landlocked Alberta and Saskatchewan provinces. The company also owns bulk liquid storage facilities in northern Europe with a capacity of 27 million barrels.

The company is starting to reap the benefits of a major expansion program that is almost complete. Most of Inter Pipeline’s profits derive from oil transportation under cost-of-service or fee-based contracts, providing a stable, low-risk income stream.

Third-quarter 2015 results showed the company heading in the right direction, with a jump in revenues, profits and cash flow. The dividend yield is an attractive 6.7% supported by considerable free cash flow over the next few years.