If you’re a dividend investor, now is a great time to pick up high-yield stocks on the cheap. Thanks to the 2014 oil crash, the TSX has had a weak five years, rising only 8% (compared to the S&P 500’s 45%). Although 2019 has seen a solid performance from top TSX stocks, Canadian equities are still cheap compared to their American counterparts.
Right now, there are several top TSX dividend stocks that are trading near their 52-week lows — despite the fact that their revenue and earnings have been going up each and every quarter. Some of these stocks have P/E ratios lower than 10 and dividend yields pushing north of 4%. Any one of them would be a valuable addition to an income-oriented portfolio.
If you’re not sure where to begin your TSX dividend bargain hunting, the following three stocks would be great places to start.
Canadian Tire Corp
Canadian Tire (TSX: CTC.A) is one of Canada’s most popular home-grown retail stores. The company spent several decades growing its flagship store into a behemoth; more recently, it has begun branching out into other ventures. These include clothing stores (like Mark’s and Helley Hansen) and gas stations.
Over the past year, Canadian Tire stock has been on a steep downtrend and is now trading near its 52-week low. However, the company posted solid results in its most recent quarter, growing comparable store sales by 7.1% — its 20th consecutive quarter of doing so. The company also grew its revenue in the quarter and posted significant comparable store sales growth at its subsidiaries SportChek and Mark’s.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) is Canada’s second-largest and fastest-growing bank. Owing to the strength of its U.S. Retail business and TD Ameritrade investment, it has delivered more value to shareholders than any other Canadian bank in the past five years.
The secret to TD’s success is its U.S. presence. With U.S. retail growing at 29% year over year and TD Ameritrade at a whopping 93%, TD has growth figures that a more domestic-focused bank just couldn’t touch. At $75, it’s just 12% up from its 52-week low and down 5% from its 52-week high, making this a great opportunity to pick up Canada’s finest bank stock at a bargain.
Husky Energy
Husky Energy (TSX:HSE) is one of Canada’s largest integrated energy companies. Based in Calgary, it has operations in Fort McMurray and off the coast of Newfoundland. The company is involved in both upstream and downstream oil and gas operations and engages in exploration, extraction, and refining. It is involved in both crude oil and natural gas markets.
Over the past 52 weeks, Husky Energy has fallen to a low of $12.47. However, in its most recent quarter, the company increased its funds from operations by about 10% and net earnings by 32% year over year. These figures show that Husky Energy is growing despite the downswing in its stock, which may make it an undervalued bargain. Just be sure to keep an eye on the price of oil when investing in a stock like this!
