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3 Value Dividend Stocks to Buy Right Now

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Buying quality dividend growth stocks when they’re priced at a value is a great way to build long-term wealth. It is also a defensive way to invest in a long bull market. Without further ado, here are three value dividend-growth stocks to buy right now.

Pembina Pipeline (TSX:PPL)(NYSE:PBA) transports hydrocarbon liquids and natural gas products primarily in Western Canada. It also owns gas-gathering and -processing facilities and an oil and natural gas liquids infrastructure and logistics business.

The stock has retreated about 8% from its 52-week high to $43.52 per share as of writing. This is a cheap price-to-cash-flow ratio of about 10.8 compared to the multiple of 12.7 to 16.6 that it had traded in the past four years.

The analysts from Thomson Reuters have a 12-month mean target of $52.80 per share on the stock, which represents about 21% near-term upside potential.

Pembina currently offers a monthly dividend, equating a juicy yield of 5.24%. It has increased its dividend for six consecutive years with a five-year dividend growth rate of 4.9%. Its dividend per share is 5.56% higher than it was a year ago.

stocks on sale

Canadian Tire (TSX:CTC.A) has about 1,700 Canadian retail locations under the brands of Canadian Tire, Mark’s, Sport Chek, etc. It also has PartSource, which sells automotive parts and owns 295 Gas+ gasoline stations.

The stock has dipped about 10% from its 52-week high to $161.62 per share as of writing. This is a decent price-to-earnings ratio of about 14.6 in comparison to management’s earnings-per-share growth of +10% per year on average through 2020.

Canadian Tire is a quality retailer that has increased its dividend for seven consecutive years. Its three-year dividend growth rate is 13.2%. For the next few years, investors can expect dividend growth of about 10% per year.

Brookfield Property Partners L.P. (TSX:BPY.UN)(NASDAQ:BPY) has a global portfolio of quality real estate properties with a focus on office and retail assets. The stock has corrected about 20% from its 52-week high to US$19.62 per unit as of writing. This is a huge +30% discount from its book value of about US$29 per unit.

Brookfield Property Partners has increased its distribution for five consecutive years with a three-year distribution growth rate of 5.7%. Its distribution per unit is 6.78% higher than it was a year ago. Going forward, it targets distribution growth of 5-8% per year. It currently offers a yield of 6.42%.

Investor takeaway

Pembina, Canadian Tire, and Brookfield Property are all excellent dividend stocks to buy today. Based on conservative estimates, they should be able to deliver long-term returns of at least 10% per year from an investment today. Of the three, I believe that Brookfield Property offers the best opportunity for value and income.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Kay Ng owns shares of Brookfield Property Partners and Pembina Pipeline. Pembina is a recommendation of Dividend Investor Canada.

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