The S&P/TSX Composite Index was down over 100 points in mid-morning trading on March 5. North American indexes have encountered significant turbulence after a hot start to the new month. Rising bond yields have spooked traders in the later winter, sparking big sell offs especially in the technology space. When this month started, I’d targeted some cheap stocks for Canadians to scoop up. Today, I want to look at three more TSX stocks that appear discounted as we approach the beginning of spring.
This dividend beast looks discounted today
Fortis (TSX:FTS)(NYSE:FTS) is one of the largest utility holding companies listed on the TSX. Its shares have dropped 3.6% in 2021 at the time of this writing. The stock has fallen 13% from the prior year.
Investors can expect to see Fortis’ first quarter results in the days ahead. This top dividend stock last had a favourable price-to-earnings ratio of 19. The stock fell into technically oversold territory in late February but has since rebounded to neutral levels. That doesn’t mean it isn’t worth picking up today.
This cheap stock offers a quarterly dividend of $0.505 per share, which represents a solid 4% yield. Fortis has delivered 47 consecutive years of dividend growth.
A cheap stock that offers stability
Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in North America. This stock has dropped 8.4% in 2021 so far. Its shares are down 14% from the prior year. I’d suggested that Canadians should snatch up this green energy stock in early February.
The company unveiled its final batch of 2020 results on March 4. Annual revenues increased 3% from the prior year to $1.67 billion. Meanwhile, adjusted EBITDA rose 4% to $869 million. The company reported adjusted net earnings of $365 million or $0.64 per share – up 14% and 2%, respectively, from the previous year.
Shares of Algonquin last had an attractive P/E ratio of 18. This cheap stock had an RSI of 23 at the time of this writing. That puts Algonquin firmly in technically oversold territory. This stock offers a quarterly dividend of $0.155 per share. That represents a 4.1% yield.
One more undervalued equity to snatch up right now
Primo Water (TSX:PRMW)(NYSE:PRMW) is the last cheap stock I want to focus on right now. This company provides water direct to consumers and water filtration services in North America, Europe, and Israel. Its shares have dropped 8.8% in 2021 so far. The stock has jumped 4.1% over the past week.
The company reported its Q4 and full year 2020 results on March 3. Primo’s revenue rose 15% from the prior year to $505 million. It benefited from increased demand for products and services from residential customers but was partially offset by lower revenue from coffee services. Adjusted net income came in at $23 million or $0.14 per share – up from $17 million or $0.13 in the prior year.
Shares of Primo last had an RSI of 40. It managed to climb outside of oversold territory this week. Algonquin offers a quarterly dividend of $0.06 per share, representing a modest 1.5% yield. This cheap stock is worth snatching up today.
Here's another dividend stock to snatch up today . . .
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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 owns shares of FORTIS INC. The Motley Fool recommends FORTIS INC.