3 Undervalued Dividend Stocks to Buy Before November

Canadian investors should look to snatch up cheap dividend stocks like Great-West Lifeco Inc. (TSX:GWO) in late October.

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The S&P/TSX Composite Index rose 68 points on October 25. The top-performing sectors on the day were base metals and energy. Investors should be on their toes as we await a batch of earnings from many top companies. Today, I want to look at three dividend stocks that look undervalued in late October. Let’s jump in.

Here’s a telecom stock that looks cheap right now

Cogeco Communications (TSX:CCA) is a Montreal-based communications company. Its shares dipped another 1.24% on October 25. The dividend stock has slipped 5.6% month over month. However, the stock is still up 9.7% in the year-to-date period.

Investors can expect to see Cogeco’s final batch of fiscal 2021 results this week. In Q3 2021, Cogeco delivered revenue growth of 3.7% to $649 million. Meanwhile, adjusted EBITDA increased 1.3% to $302 million. Canadian and American broadband services achieved revenue growth of 10% and 7.2%, respectively, compared to the previous year. Moreover, revenue in its media activities space rose 23% largely due to the easing of pandemic-influenced restrictions.

Shares of this dividend stock possess a favourable price-to-earnings (P/E) ratio of 12. The stock has an RSI of 24 at the time of this writing. That puts Cogeco well into oversold territory. Moreover, it last paid out a quarterly dividend of $0.64 per share. This represents a 2.3% yield.

This monthly dividend stock offers nice value

Last year, I’d discussed why monthly dividend stocks were a great way to churn out passive income. Extendicare (TSX:EXE) is a Hamilton-based company that provides care and services for seniors across Canada. This is a healthcare stock that is well worth targeting in this environment. The COVID-19 pandemic has put a major focus on the conditions for seniors in Canada.

Extendicare stock has increased 11% in 2021 as of close on October 25. However, its shares have dropped 5.7% over the past month. The company unveiled its second-quarter 2021 results back in August. Revenue rose 9% year over year to $307 million. It was powered by 24% growth in home healthcare average daily volumes (ADV). Moreover, adjusted EBITDA surged from $9.7 million in Q2 2020 to $17.8 million.

This dividend stock last had a favourable P/E ratio of 11. It offers a monthly dividend of $0.04 per share, representing a tasty 6.6% yield.

One more cheap dividend stock to snatch up today

Great-West Lifeco (TSX:GWO) has proven to be an extremely reliable dividend stock for investors in recent years. This Winnipeg-based company is engaged in insurance and financial services. Shares of Great-West has climbed 24% so far this year. The stock is up 34% compared to the same period in 2020.

In Q2 2021, the company reported base earnings of $826 million or $0.89 per share — up from $706 million, or $0.76 per share, in the previous year. Meanwhile, assets under administration (AUA) were $2.2 trillion as of June 30, 2021. This is up 9% from December 31, 2020. It benefited from a resurgent market.

Shares of this dividend stock possess an attractive P/E ratio of 10. It last had an RSI of 29, which means Great-West has fallen to oversold levels. Moreover, it offers a quarterly dividend of $0.438 per share. That represents a solid 4.7% 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 of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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