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3 Dividend Stocks to Build Your Portfolio Around

In light of all the sell-offs and the challenges that we’ve seen the TSX face this year, investors may be wondering if there are still any stocks worth investing in. However, by investing in blue-chip stocks trading at low multiples, you can help protect yourself from big corrections. Below are three stocks that are still great long-term buys:

Canadian Imperial Bank of Commerce  (TSX:CM)(NYSE:CM) is a terrific bank stock to pick up for years, maybe even decades. The company pays a high dividend when it comes to its peers at around 4.7%, and it might just be the best low-risk yield out there.

But it’s not just the dividend that makes CIBC’s stock a great pick, as it is very modestly priced as well. At a price-to-earnings ratio of 10 and a price-to-book multiple of 1.6, CIBC’s stock is a great option for value investors.

The stock was doing well until recently, but the bear market we’ve seen over the past little while has resulted in CIBC losing more than 7% of its value during the last three months. Although the stock is not quite at its 52-week low, it’s getting closer to it and could have a lot of upside if it continues to build on its impressive results south of the border.

Canada National Railway  (TSX:CNR)(NYSE:CNI) has had good results this year as a strong economy has meant more goods being transported across the country. Higher activity has resulted in more staff being hired and the company putting out some strong performances overall.

Year to date, CN Rail’s stock has risen by more than 8%, and over five years it has grown by nearly 90%. While the stock might not seem like an exciting investment opportunity, it does have a lot of appeal to those looking for value and strong fundamentals.

Currently, the stock is trading at around 14 times its earnings, meaning that CN Rail isn’t at a big risk for a correction even though it’s coming off a 52-week high. Even during the past three months that saw many stocks struggling badly, CN Rail has declined by just 2%.

Over the long term, this stock can provide investors with strong, stable returns while also paying a modest dividend of around 1.5%.

Rogers Communications Inc  (TSX:RCI.B)(NYSE:RCI) is another stock that you can’t go wrong with. The media and telecom giant offers investors a lot of diversification as it isn’t reliant on just one industry for growth.

Like CN Rail, Rogers has been doing well while the bears have been out, rising a little under 2% during the last three months. Year to date, the stock has grown by 8%, providing investors with solid returns on top of an already good dividend of 2.8%.

Rogers has been a household name for years in Canada, and there’s no reason to expect that to change anytime soon. With the company having interests in local sports teams, Rogers has shown that it isn’t afraid of looking at new markets and segments, which is a good sign for investors as it ensures the company will continue to find ways to add value for its shareholders.

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Fool contributor David Jagielski has no position in any of the stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Rogers and CN are recommendations of Stock Advisor Canada.

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