Market Pullback: 3 High-Yield Dividend Stocks to Buy Now

The market pullback should inspire investors to snag discounted high-yield dividend stocks like Keyera Corp. (TSX:KEY) today.

| More on:
Increasing yield

Image source: Getty Images

The S&P/TSX Composite Index was up 187 points in early afternoon trading on December 6. Canadians stocks have been reeling since a late-November dip that has been exacerbated by reports suggesting that central banks are ready to move on rate hikes early in 2022. This market pullback should spur investors to take advantage of discounts. Today, I want to look at three high-yield dividend stocks to snag on the dip. Let’s jump in.

This dividend stock offers a monster yield for investors

Keyera (TSX:KEY) is a Calgary-based company that is engaged in the energy infrastructure business. Its shares have climbed 21% in 2021 at the time of this writing. The stock is down 10% in the month-over-month period.

The company released its third-quarter 2021 earnings on November 3. Adjusted EBITDA came in at $214 million — up from $196 million in the prior year. Meanwhile, net earnings climbed to $70 million compared to $33 million in the third quarter of 2020. Keyera boasts $1.4 billion in available liquidity.

Shares of this dividend stock are trading in favourable value territory compared to its industry peers. Keyera offers a monthly dividend of $0.16 per share. That represents a tasty 6.9% yield.

Why this green energy stock is worth grabbing during the market pullback

Capital Power (TSX:CPX) is an Edmonton-based company that develops, acquires, owns, and operates power-generation facilities in North America. Shares of Capital Power have increased 11% in 2021. This dividend stock has dropped 3.6% in the month-over-month period.

In Q3 2021, Capital Power posted adjusted EBITDA of $286 million — up from $284 million in the third quarter of 2020. Net income in the year-to-date period increased to $156 million, or $1.09 per diluted share, compared to $129 million, or $0.87 per diluted share, in the previous year-to-date period. Meanwhile, adjusted funds from operations jumped to $456 million in the first nine months of 2021 — up from $436 million in the prior year.

This dividend stock is also trading in attractive value territory in comparison to its industry peers. It offers a quarterly dividend of $0.547 per share. That represents a strong 5.5% yield.

One more dividend stock to buy now

Last week, I’d looked at some of the top bank stocks to buy after the final batch of earnings were released. Scotiabank (TSX:BNS)(NYSE:BNS) stock has climbed 25% in 2021 at the time of this writing. Shares of this dividend stock have surged following the release of its fourth-quarter and full-year 2021 earnings.

Scotiabank delivered adjusted net income of $2.71 billion, or $2.10 per share, in the fourth quarter of 2021 — up from $1.93 billion, or $1.45 per share, in the previous year. Meanwhile, in the year-to-date period adjusted earnings jumped to $10.1 billion, or $7.87 per share. It delivered strong growth in all major segments for the year.

The bank boosted its quarterly dividend to $1.00 per share, which represents a solid 4.7% yield. Shares of this dividend stock still have a favourable P/E ratio of 11.

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 BANK OF NOVA SCOTIA and KEYERA CORP.

More on Investing

Index funds

Got $500 to Invest in Stocks? Put it in This Index Fund

Here's why I like this index fund.

Read more »

A colourful firework display
Tech Stocks

3 TFSA Stock Picks With Explosive Potential

Want some explosive growth in your TFSA. These small-cap stocks have risks, but they could also have some massive reward.

Read more »

Dollar symbol and Canadian flag on keyboard

1 Canadian Stock to Buy and Hold Forever in Your TFSA

Shopify (TSX:SHOP) stock is back on the retreat, but it's still a top tech buy for TFSA investors seeking value…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, July 25

The U.S. GDP quarterly growth numbers will remain on TSX investors’ radar today as they continue to assess the Bank…

Read more »

Family relationship with bond and care

Retiring Soon? Add These Dividend-Paying Stocks to Your Portfolio

Here are two of the best TSX dividend stocks you can add to your retirement portfolio today and hold for…

Read more »

man touches brain to show a good idea
Dividend Stocks

Pembina Vs. Brookfield Renewable: Which High-Yield Dividend Stock Is Better?

Both Pembina Pipeline (TSX:PPL) and Brookfield Renewable Partners (TSX:BEP.UN) look like strong dividend stocks, but is one better?

Read more »

Road signs rerouting traffic
Tech Stocks

Forget Nvidia Stock: 2 Tech Stocks to Buy Instead

There are clear winners, and then there are popular choices. And Nvidia stock (NASDAQ:NVDA) has erred towards simply popular.

Read more »

Stock Market

Here Are My Top 2 Stocks to Buy in July 2024

Here's why top TSX stocks such as Cameco are positioned to deliver outsized gains to shareholders in the upcoming decade.

Read more »