The TSX has been trending down over the past few weeks, having shed about 1.4% of its value since July 23. For many investors, it has been a hard time, with their favourite stocks having fallen from previous highs.
But for bargain hunters, the current market is a buying opportunity, with quality stocks available for discount prices.
With financial stocks having been hit particularly hard, their sector is home to a number of low-priced stocks… many of them with high dividend yields. The following are just three high-yield dividend stocks that are currently trading for historically low prices.
Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is one of Canada’s big six banks. Although it has a U.S. business, it’s one of the most domestic-focused banks, with over 90% of its income coming from Canada.
For this reason, CIBC’s growth has been somewhat more tepid than its competitors. Its exposure to perceived weakness in Canadian credit quality is also higher; as a result, its PCLs were up $43 million or 20% in its most recent quarter.
These and other factors explain why U.S. hedge funds have been taking short positions in CIBC stock. However, in recent months, we’ve seen a moderate recovery in the Canadian housing market, which bodes well for the bank’s mortgage business.
The stock currently trades at 8.5 times earnings and has a whopping 5.7% dividend yield.
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Bank of Nova Scotia
Unlike CIBC, Bank of Nova Scotia isn’t inordinately exposed to the Canadian housing market, as its international operations actually earn more than its Canadian ones.
Geographic diversification is a good thing in itself, and it’s particularly good for a Canadian bank in 2019, when the domestic consumer economy has become such a big concern.
Scotiabank’s growth has been relatively tepid in recent quarters, which has resulted in its stock stagnating. However, as a result of the weak performance, the stock now trades at just 10 times earnings with a 5% yield.
RioCan Real Estate Investment Trust
RioCan Real Estate Investment Trust (TSX:REI.UN) is a real estate trust that invests in retail and residential trophy properties, primarily in Ontario.
The company’s projects include some of the biggest-ticket items in Toronto, like The Well and eCentral. RioCan’s retail properties are somewhat vulnerable to the e-commerce trend, however the company has been branching out into residential real estate to diversify.
The company’s strategy seems to be working, as its net income shot up 127% year-over-year in its most recent quarter.
Despite this frothy growth, the company’s units trade at just 11 times earnings and have a distribution yield of 5.48%. A better combination of growth and value is hard to find.
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 Andrew Button has no position in any of the stocks mentioned. Bank of Nova Scotia is a recommendation of Stock Advisor Canada.