Got $2,000? 3 Dividend Stocks I’d Buy Today

Canadians who have stashed some extra cash during the pandemic should buy top dividend stocks like Canadian Tire Corporation (TSX:CTC.A).

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The savings rates for Canadians broadly rose over the course of the pandemic. This did not come as a huge surprise as citizens were forced to cut out many of their favourite leisure activities in the face of rising restrictions and lockdowns.

Today, I want to explore how Canadians can look to use that extra cash. Below are three dividend stocks worth a look in early August.

This top bank stock is worth buying ahead of earnings

TD Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada. In early June, I’d discussed whether it was a better buy over the country’s top bank: Royal Bank of Canada. Shares of this dividend stock have climbed 16% in 2021 as of early afternoon trading on August 5. The stock is up 39% year over year.

Like its peers, TD Bank put together strong earnings in the first half of 2021. Adjusted net income was reported at $7.15 billion, or $3.86 per share in the first half of this fiscal year – up from $4.67 billion, or $2.51 per share in the previous year. The bank benefited from improved revenues and a big drop in provisions for credit losses.

Shares of this dividend stock last had a favourable price-to-earnings ratio of 10. Meanwhile, it offers a quarterly dividend of $0.79 per share. That represents a 3.7% yield.

One dividend stock to buy as the economy reopens

Canadian Tire (TSX:CTC.A) is a Toronto-based company that provides a range of retail goods and services. This dividend stock has climbed 16% in the year-to-date period. Its shares have climbed 51% from the prior year.

Investors can expect to see its second-quarter 2021 results sometime this month. In Q1 2021, Canadian Tire saw its e-commerce sales soar 257% across all retail banners. Meanwhile, digital visits increased 60% across all its banners. The COVID-19 pandemic has powered growth in the e-commerce space. Retailers have been forced to adjust to this crisis in order to survive and thrive.

Shares of Canadian Tire last had a P/E ratio of 12, putting the stock in solid value territory. This dividend stock offers a quarterly distribution of $1.175 per share, which represents a 2.4% yield.

You can rely on this dividend stock for the long term

In February, I’d looked at four meaty dividend stocks that were undervalued. One of those stocks was a branch for Cogeco (TSX:CGO). This Montreal-based branch operates in the communications and media sectors in Canada. Shares of this dividend stock have increased 10% in the year-to-date period. However, the stock is down almost 7% month over month.

The company released its third-quarter fiscal 2021 results on July 14. Revenues rose 3.1% year over year to $624 million. Meanwhile, adjusted EBITDA rose 0.8% to $297 million. Its free cash flow jumped 13.7% to $132 million.

This dividend stock possesses an attractive P/E ratio of 10. It last paid out a quarterly dividend of $0.545 per share. That represents a 2.4% yield.

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 stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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