3 Cheap Dividend Stocks to Buy Before October

Canadians should look to snag undervalued dividend stocks like Sienna Senior Living Inc. (TSX:SIA) at the end of September.

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The S&P/TSX Composite Index was up 87 points in mid-afternoon trading on September 23. Canadian stocks have broadly bounced back since a rough start to the year. However, there are still some solid buy-low opportunities for investors. Today, I want to look at three undervalued dividend stocks that you should consider today.

Consider this undervalued stock in the auto space

Element Fleet Management (TSX:EFN) is a Toronto-based company that provides fleet services and solutions for cars, light-duty vehicles, trucks, and MHE equipment. Shares of this dividend stock have increased 1.2% in 2021 at the time of this writing. The stock is up 22% from the prior year. It has dropped 5.5% month over month.

The company unveiled its second-quarter 2021 results on July 27. Net revenue climbed 4.4% from the prior year to $235 million. This fell within the company’s target. Meanwhile, adjusted operating income climbed 13.8% to $126 million or $0.20 per share. It reported that client demand for new vehicles was up 56% in the first half of the fiscal year. The company is projected for strong earnings growth and boasts a solid balance sheet.

Shares of this dividend stock possess a solid price-to-earnings ratio of 20. It offers a quarterly dividend of $0.065 per share, which represents a modest 1.9% yield.

This top telecom dividend stock is worth buying on the dip

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is one of the top telecommunications companies in Canada. I’d suggested that investors should look to snatch up this dividend stock earlier this month. Shares of Rogers have dropped 1.7% in 2021. It has plunged 6.3% month over month, pushing it into the red.

Investors got a look at its second-quarter 2021 earnings on July 21. It delivered wireless service revenue growth of 2% as wireless postpaid net subscriber additions rose to 99,000. Total revenue increased 8% to $7.07 billion for the first six months of 2021. Meanwhile, adjusted EBITDA climbed 5% to $2.76 billion in the year-to-date period. Adjusted net income rose 15% to $781 million.

This dividend stock last had a favourable P/E ratio of 18. Rogers currently offers a quarterly dividend of $0.50 per share, which represents a 3.3% yield.

One more cheap dividend stock that offers monthly income

Sienna Senior Living (TSX:SIA) provides senior living and long-term care (LTC) services across the country. Shares of this dividend stock have climbed 9.3% in the year-to-date period. The stock is up 36% from the same time in 2020. Last year, I’d discussed why stocks like Sienna were worth targeting as the COVID-19 pandemic put the focus on long-term care facilities in Canada.

In Q2 2021, the company delivered a net income of $8.1 million – that’s up $1.3 million from the previous year. Sienna reported strong liquidity of $235 million to close out the quarter. Canadians should look to snag stocks with exposure to this sector. The aging population will boost the population at long-term care facilities, and the pandemic has shown the need for more funding going forward.

This dividend stock last paid out a monthly distribution of $0.078 per share. That represents a strong 6.2% 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 recommends ROGERS COMMUNICATIONS INC. CL B NV.

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