If you’re looking for a good dividend stock, now might be a great time to consider buying one. With many stocks dropping in price lately, yields are up and investors have the opportunity to lock in some higher-than-normal payouts. Below are three stocks that have dropped significantly over the past few months and that are now paying more than 3% annually.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) might be one of the more surprising stocks to make this list, as the bank is coming off another strong quarter. It ended last week at less than $70 per share, which is a bit of a discount from where I expect the stock price should be.
Unfortunately, for TD and other stocks, trade concerns and other geopolitical issues have been weighing on the markets, which has kept prices down. However, for investors, that means if you buy today you can get a yield of around 3.8% from TD’s stock, which is pretty high from this stock.
While you might be tempted to hold out a bit longer to see if TD’s stock will continue to drop in price, it is near its 52-week low, and it’s only a matter of time before investors decide to load up on this bargain.
Over the past three months, TD’s stock has declined 12% coming into this week.
Suncor Energy Inc (TSX:SU)(NYSE:SU) has dropped by around 20% over the past three months, as it has been hit hard by struggling oil prices in an industry that has been a big concern for the country these days.
While production cuts from the Alberta government could help with that, in the short term it could add more pain for the industry, as that will put more strain on jobs and result in a softer quarter for many companies.
Suncor has been through this before and has managed to perform well even during difficult times, so investors shouldn’t be overly concerned with the stock over the long term.
The decline in price has pushed its yield up to over 3.4%, and it could be a good one to add to your portfolio if you’re looking for some diversification. Like TD, Suncor is also not too far away from its low for the year.
Slate Retail REIT (TSX:SRT.UN) offers investors the highest yield on this list as the stock is paying 9.2% after dropping 7% in the last three months. Slate will also provide your portfolio with monthly payouts, giving you a great stream of recurring cash flow.
With dividends in U.S. dollars, you can also take advantage of a strengthening U.S. currency, as you have the ability to earn even more if you’re bullish on the American economy in relation to the Canadian one.
Although the company has recently struggled to turn a profit, with a portfolio of assets that covers parts of North America and Europe, Slate offers a lot of diversity and opportunity for growth. Over the years, Slate has seen good, steady growth; as it expands, its financials are likely to continue to see that pattern unfold.
Slate might have some risk, but investors could also reap significant rewards from owning the stock, as it’s currently trading below book value and near its 52-week low.