The last two weeks have not been fun for investors. At the time of writing, United States market futures were well into the red for the March 6 trading day. This stands as the worst two trading weeks since the financial crisis, and the steady spread of the COVID-19 coronavirus remains a major threat to stability.
Investors are understandably rattled, but I’d discussed why it is a good idea to model your behaviour after investing legends like Warren Buffett in turbulent times. That’s why today I want to hunt for value. In this article, we will take a snapshot of three top dividend stocks that have plunged to 52-week lows.
Ag Growth International
Ag Growth International (TSX: AFN) manufactures and distributes grain handling, storage, and conditioning equipment in Canada, the United States, and around the globe.
Its shares have plunged 23% over the past month as of close on March 5. The 4% drop on Thursday put Ag Growth at a 52-week low. Ag Growth stock last paid out a monthly dividend of $0.20 per share, representing a tasty 6.7% yield.
Investors can expect to see this company’s fourth quarter and full-year results for 2019 on March 25. In the year-to-date period as at the end of Q3 2019, Ag Growth reported trade sales of $770 million over $719 million in the prior year.
Adjusted EBITDA moved up marginally to $121 million over $120 million in the first nine months of 2018. Sales growth was curbed somewhat by challenging market conditions in North America and global economic uncertainties.
Broader hazards aside, Ag Growth boasts solid fundamentals. The stock last possessed a favourable price-to-book value of 1.7 and shares had an RSI of 19 which puts it in technically oversold territory.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) stock has dropped 10.5% over the past month. Shares have dropped to the lowest point since the sharp late 2018 correction. In its first quarter 2020 earnings report, the bank announced an increase in its quarterly dividend to $0.79 per share, which represents a 4.7% yield.
Adjusted income in Canadian and U.S. Retail banking was down from the prior year. The latter was held back by lower margins due to a softening rate environment south of the border. Benchmark rates have been slashed by the U.S. Federal Reserve and Bank of Canada by 50 basis points in March, so there’s no relief forthcoming on this front. However, loan and deposit volume growth continues to be strong.
Similar to its top peers, TD Bank has an immaculate balance sheet and a reliable dividend payer. The stock possesses a low price-to-earnings ratio of 10 and a P/B value of 1.4. It remains in oversold territory with an RSI of 23 at the time of this writing.
Restaurant Brands International
Like travel, the restaurant industry is suffering from pessimism due to the COVID-19 outbreak. Consumers are more likely to stay inside rather than going out to eat in these conditions. Fast food chains were subjected to broad shut-downs in China as it fought its outbreak.
Restaurant Brands International (TSX: QSR)(NYSE: QSR) stock has fallen 11% week over week, pushing shares into negative territory in the year-over-year period. RBI last paid out a quarterly dividend of $0.50 per share, which represents a 3.8% yield.
The company opened 1,342 net new restaurants in 2019. Its Burger King and Popeyes chains reported strong system-wide sales growth for the year, but Tim Hortons continued to lag. RBI has vowed to “focus on fundamentals” and go back to its founding values in order to reinvigorate growth at the famous Canadian chain.
While companies in the restaurant space will face major challenges in the near term due to the COVID-19 outbreak, RBI has the fundamentals to weather this storm. Its stock last had an RSI of 21, putting it at oversold levels.
