TFSA Investors: 3 Great Dividend Stocks Trading Near Their 52-Week Lows

October’s volatility has created an opportunity to buy several dividend stocks on the cheap, including Canadian Western Bank (TSX:CWB) and a very intriguing small-cap tech stock that yields over 4%.

| More on:
The Motley Fool

October brings beautiful fall colours, but in 2018 it also brought some unwanted volatility to the TSX Index.

Just as trees shedding their leaves is a necessary part of nature, giving way to new life next spring, sell-offs like we’ve seen over the past month create new opportunities for Foolish investors.

Maxar Technologies (TSX:MAXR)(NYSE:MAXR) is a technology company undergoing a pretty significant transformation right now.

Maxar, which used to go by the name of MacDonald, Dettwiler and Associates, is currently making a pivot away from its legacy satellite communications business and now making a big push into the U.S. defence market.

Several components of the company’s transition have already taken place, including the dual listing of its shares on the NYSE.

If the move is executed according to plan, and the company is successful in winning some large U.S. government contracts, shares could soar to new heights.

Meanwhile, MAXR stock pays you a respectable 4.10% while you wait.

Okay, so Teck Resources’s (TSX:TECK.B)(NYSE:TECK) dividend isn’t exactly going to blow your socks off, yielding just 0.81% per year as of Friday’s trading. The metals and mining company was forced to cut its dividend in the wake of the super-cyclical collapse in commodity prices that took place earlier in the decade.

But it appears as though Teck is starting to learn from some of its past mistakes.

Instead of aggressively ramping up its dividend as commodity prices have begun to recover, it’s taken the more prudent route of paying down some of its near-term debt maturities in order to improve its long-term financial flexibility.

However, the company did come out with a disappointing earnings report late last week, so investors would probably be best advised to continue to monitor TECK stock and wait for the situation to stabilize somewhat before making their move.

Canadian Western Bank (TSX:CWB) has made some pretty major acquisitions in recent years, as the bank looks to make a push to compete on the same stage of some of its larger rivals.

However, the bad news is that may cost shareholders if the economy were to take a downturn.

The very same aggressiveness that won the favour of CWB’s shareholders, leading to the value of the company more than doubling between 2016 and 2018, may come back to haunt it should interest rates continue to rise, as some are speculating they may.

Not only would CWB’s interest costs be expected to increase but there would be a heightened degree of risk on the company’s loan book.

Yielding shareholders 3.40% annually as of this writing, this is another one that offers solid long-term promise, but it might warrant that investors exercise a little patience to see if they can obtain a better purchase price for the shares.

Bottom line

When investors start to stress about the stock market, more often than not, it’s quality that ends up being rewarded.

These three stocks each have bright futures ahead of them, which should pave the way for sustainable dividend increases for the company’s shareholders.

Fool on.

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 Jason Phillips has no position in any of the stocks mentioned. Maxar is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

investment research
Dividend Stocks

Young Investors: Create Cash Flow With This Top Dividend Stock

If you're a young investor looking for cash flow, you need a strong dividend stock and solid banking program designed…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

3 Superb Dividend Stocks I’m Ready to Buy

The market is full of great options for income-seeking investors. Here are three superb dividend stocks to buy now.

Read more »

Payday ringed on a calendar
Dividend Stocks

Gen Z Investors: Create a Stable Passive-Income Stream of $188/Month for Retirement

This passive-income stock is perfect for Gen Z investors who don't have much to invest but want to see stable,…

Read more »

exchange-traded funds
Dividend Stocks

2 ETF Bargains You Shouldn’t Miss in 2022

Index ETFs are only discounted when there is a market-wide slump, which is rarer than sector-specific dips, so you should…

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

2 Real Estate Stocks to Add Growth to Your Portfolio

The right real estate investments, whether they are properties or real estate stocks, usually offer a decent mix of income…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

2 Canadian Energy Stocks With Ridiculously Fast-Growing Dividends

Canadian energy stocks are gushing cash and there's plenty left for shareholders. Here are two stocks for ridiculously fast-growing dividends

Read more »

retirees and finances
Dividend Stocks

Retirees: 2 Top TSX Dividend Stocks to Buy for TFSA Passive Income

These industry leaders pay attractive dividends for a portfolio focused on passive income.

Read more »

Canadian stocks are rising
Dividend Stocks

2 High-Quality Real Estate Plays to Buy for High-Yielding Dividends

Take advantage of the housing market cooldown by investing in these two quality REITs.

Read more »