Buy This Dividend Stock to Benefit From the Rise in Consulting Activity

Stantec Inc. (TSX:STN)(NYSE:STN) is an Edmonton-based professional services company specializing in design and consulting. Shares of Stantec were down 1.24% in late morning trading on November 15th. The stock has increased 4.6% in 2017 and 2.6% year over year.

In the most recent August GDP report from Statistics Canada, professional services activity grew 0.3%. Management, scientific, and technical consulting services increased by 0.9%. Technological changes have forced businesses to look externally in order to evolve processes. Because of this, consulting services have been rising in demand.

Stantec Inc. released its third-quarter results on November 9th. Gross revenue climbed 3.3% to $1.3 billion compared to Q3 2016. Net income dipped to $46.2 million compared to $49.3 million in the third quarter of 2016. The company was forced to deal with a $3.6 million tax expense due to a corporate reorganization in the quarter.

The company also declared a dividend of $0.12 per share representing a 1.4% dividend yield. Looking ahead, Stantec should benefit from a number of developments in Canada and North America as a whole. The Canadian government has laid out a $125 billion infrastructure spending plan that has been subject to delay. When it does get going a company like Stantec that provides consulting in architecture design, civil engineering, and other specialized services, will be in high demand.

Stantec is a solid buy going forward for its growth potential and its solid dividend payout.