2 High-Yield Dividend Stocks Dropped Under $10 During Massive Market Selloff

The current market turbulence shouldn’t suppress your appetite for investing. Superior Plus Corp and Magellan Aerospace Corporation are two high yield dividend stocks that dipped below $10 per share, offering a great discount buy opportunity.

| More on:
Illustration of bull and bear

Image source: Getty Images.

In just 14 days, the Canadian stock market went from bull to bear as investors stampeded for the exits. Markets were already struggling with the pandemic pandemonium when the drop in global oil prices finally triggered a mass sell-off.

But this current market turbulence shouldn’t suppress your appetite for investing. Now is the perfect opportunity to buy potent dividend stocks while they’re still cheap.

Superior Plus Corp (TSX:SPB) and Magellan Aerospace Corporation (TSX:MAL) are two high-yield dividend stocks that dipped below $10 per share, offering a great discount buy opportunity.

Magellan Aerospace Corporation

With political tensions high and growing globally, it’s not surprising that the defense and aerospace industry has enjoyed a boom over the past few years.

Magellan Aerospace Corporation is a manufacturer and supplier of aero-engines and aerostructures assemblies for both the military and consumer market.

Based on rising demand, a growing space market as well as sound management decisions on the part of the company, Magellan Aerospace has more than doubled its earnings over the past five years.

Over the same period, the company has also kept increasing its yearly dividend yield.

With multi-year agreements in place with such prominent clients as the Canadian government and the Boeing Company, the prospect for this company look secure.

At the time of writing, its shares are being traded at $8.4, compared to last month when the valuation per share was $14.06.

With a forward P/E of just 5.79, its share is potentially being traded at far below the intrinsic value. Its current dividend yield stands at a superb 5%.

By investing today, investors are also likely to snag in huge upsides as the stock rebounds near its intrinsic value when market conditions normalize.

Superior Plus Corp

Superior Plus Crop is another great stock with a juicy dividend you can buy right now for a huge discount. The company is a leading distributor of propane in Canada and the six largest down south in the United States. Taken in total, the company has a customer base of more than one million.

The company also sells industrial chemicals such as sodium chlorate and sodium chlorite, with the segment representing 30% of its EBITDA. As a provider of necessary utilities for many industrial applications, the company promises stability and reliability.

At an astonishing 7.74%, the company offers a dividend yield that is more than double the TSX’s average. However, with a payout ratio that has remained below 60%, its high yield figure remains manageable.

Its stock is currently being traded at $8.81 at writing compared to last month, when it was $11.4. With a forward P/E of 11.01, its shares are relatively cheap.

Bottom line

Both of these stocks represent stable and reliable sources of passive income, and both represent businesses that are largely shielded from volatility in market trends.

Investors are thus bound to upsides to their investments over the long term.

Stay hungry. Stay foolish.

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 Jason Hoang has no position in any of the stocks mentioned.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »