The S&P/TSX Composite Index was up 99 points in mid-afternoon trading on February 5. Canadian stocks continued to build momentum, even after a dismal domestic jobs report that shot unemployment up to 9.4%. Earlier this week, I’d discussed why investors may want to stash dividend stocks, as market volatility returned in late January. Today, I want to go over four dividend stocks that are discounted. Let’s jump in.
This telecom dividend stock offers nice value today
Cogeco Communications (TSX:CCA) is a Montreal-based company that operates as a top telecom in Canada. Its shares have shot up 13% in 2021 as of mid-afternoon trading on February 5. The stock is up 5.2% year over year.
The company released its first-quarter fiscal 2021 results on January 14. Revenue rose 4.5% to $646 million and adjusted EBITDA jumped 10% to $321 million. It thrived on the back of improved broadband services revenue in Canada and the United States. Moreover, guidance received a boost after the acquisition of DERYtelecom.
Shares of this dividend stock last possessed a favourable price-to-earnings ratio of 13 and a price-to-book value of 2.2. The stock offers a quarterly dividend of $0.64 per share. That represents a 2.3% yield.
Don’t sleep on this Canadian food staple
Maple Leaf Foods (TSX:MFI) is a top consumer protein company. The household name made the forward-thinking move into plant-based protein alternatives in 2017 with its acquisition of Lightlife. Shares of Maple Leaf have dropped 10% to start this year. However, investors should still look to stack this dividend stock for the long haul.
Investors can expect to see Maple Leaf’s final batch of 2020 results later this month. In Q3 2020, both its meats protein and plant-based protein groups saw promising growth. The pandemic has led Canadians to boost their grocery purchases, which has been good for Maple Leaf. Its stock last had a P/E ratio of 29 and a solid P/B value of 1.6.
Maple Leaf offers a quarterly dividend of $0.16 per share, which represents a 2.5% yield.
An energy stock that packs a big income punch
Canadian energy stocks have bounced back in late 2020 and early 2021 as oil and gas prices have rebounded. Pembina Pipeline (TSX:PPL)(NYSE:PBA) is a Calgary-based company that provides transportation and midstream services for the energy sector in North America. The dividend stock has climbed 16% in 2021 so far.
Pembina will release its fourth-quarter and full-year 2020 results on February 25. Its shares last had a favourable P/E ratio of 21 and a P/B value of 1.4, better than the industry average. Pembina offers a monthly distribution of $0.21 per share. That represents a monster 7.1% yield.
One more undervalued dividend stock to buy now
Canadian Western Bank (TSX:CWB) is the final discounted dividend stock I want to focus on in this piece. This regional bank stock may be overlooked compared to its Big Six peers, but that should not be the case. Shares of Canadian Western are still down 9% from the prior year. The stock has increased 13% over the last three months.
Investors can expect to see Canadian Western’s first-quarter 2021 results in late February. Its stock has an attractive P/E ratio of 10 and a P/B value of 0.9. Better yet, it offers a quarterly dividend of $0.29 per share. This means Canadian Western boasts a 3.9% yield.
Here are 10 more stocks to stash right now...
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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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.