1 Under $20 TSX Stock With Double-Digit Dividend Yield to Buy Before U.S. Elections

Many factors — including the upcoming U.S. presidential elections — are keeping the broader market highly volatile these days. But you can use this volatility to buy some great dividend stocks really cheap. Here’s a great TSX stock with a double-digit dividend yield to buy today.

| More on:
TIMER SAYING TIME FOR ACTION

Image source: Getty Images

The markets across North America are trading with high volatility these days, as the U.S. presidential elections are less than two weeks away. While the uncertainties related to the election results have increased market volatility lately, investors could use this volatility to buy good stocks cheap.

Let’s take a quick look at one cheap but great TSX stock with an amazingly high dividend yield that you can buy today.

Brookfield Property Partners

Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) is a Hamilton, Bermuda-based global real estate giant with total assets worth about US$86 billion. The company owns and operates some of the most iconic commercial properties in the world. Its parent company Brookfield Asset Management manages assets worth US$550 billion.

Brookfield Property Partners

Due to the ongoing pandemic, Brookfield Property Partners has registered a sharp drop in its revenue in the first half of 2020. In the second quarter, its revenue fell by 30.5% to US$1.4 billion. This resulted in a massive quarterly loss of US$1.3 billion for the company.

During the quarter, the commercial real estate company generated US$178 million of funds from operations. It was sharply lower as compared to US$335 million in the second quarter of 2019. Due to the COVID-19, its occupancy in the portfolio fell by 20 basis points to about 92.3% — hurting its operating performance.

Previously in the first quarter of 2020, it reported a 27% drop in its revenue to US$1.1 billion and lost around US$445 million.

The trend in financials is likely to turn positive soon

After facing pandemic-related headwinds in the first half of 2020, Brookfield Property Partners’s operating and financial performance is likely to improve in the second half.

In its second-quarter earnings conference call, its CEO Brian Kingston stated, “While we’re not completely out of the woods, we expect the severity of the impact of the shutdowns to be largely isolated within the second quarter.” The company expects its leisure-focused hotel business to recover at a much faster rate than its other businesses.

Brookfield Property Partners will announce its third-quarter results in the first week of November. Wall Street analysts expect it to return to profitability in Q3. According to analysts’ latest consensus data, the company is expected to report an adjusted net profit of US$882 million in the third quarter with a solid 69% margin.

Foolish takeaway

The upcoming U.S. elections are likely to keep the broader market — including Brookfield Property Partners stock — volatile in the next month. However, its strong third-quarter results on November 6 could be enough to drive a rally in its stock prices.

We shouldn’t forget the fact that the company currently has an amazing 10.1% dividend yield — making its stock even more attractive. Its strong balance sheet could help Brookfield Property Partners maintain its solid dividend, despite the pandemic’s challenges.

These are some of the reasons you may want to buy its stock before it starts rallying. It has already risen by 8% in October so far, but the stock is still down 27% on a year-to-date basis.

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 Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and Brookfield Property Partners LP.

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 »