3 Cheap Dividend Stocks Yielding up to 5.3% to Hold Forever

Canadians should look to snatch up undervalued dividend stocks like Manulife Financial Corporation (TSX:MFC)(NYSE:MFC) in late December.

Various Canadian dollars in gray pants pocket

Image source: Getty Images

The S&P/TSX Composite Index shot up 386 points on December 21. That was the biggest one-day gain in 10 months. Markets have been rattled in December by the emergence of the Omicron COVID-19 variant. The variant has quickly spread across North America, spurring a push for renewed restrictions and a round of boosters. Investors still have an opportunity to snatch up equities at a discount. Today, I want to look at three dividend stocks that look undervalued in the final days of 2021. Let’s jump in.

Here’s a media-focused dividend stock to consider in late December

Corus Entertainment (TSX:CJR.B) is a Toronto-based company that operates specialty and conventional television networks and radio stations in Canada and around the world. Shares of this dividend stock have climbed 5.1% in 2021 as of close on December 21. However, the stock has plunged 15% in the month-over-month period.

The company released its fourth-quarter and full-year 2021 results on October 22. Consolidated revenues increased 13% year over year to $361 million while revenue delivered 2% growth in the year-to-date period. Meanwhile, segment profit jumped 9% to $102 million, or 4%, for the full year to $524 million. Corus has benefited from the broader economic recovery that has also led to improved advertising revenues.

Shares of this dividend stock possess a very attractive price-to-earnings (P/E) ratio of 5.4. The stock last had an RSI of 27, which puts it in technically oversold territory. Corus offers a quarterly dividend of $0.06 per share, which represents a strong 5.3% yield.

This top financial stock still looks undervalued right now

Manulife Financial (TSX:MFC)(NYSE:MFC) is a top insurance and financial services provider that is based in Toronto. This dividend stock has increased 4.8% in the year-to-date period. Its shares have dipped 3.7% in the month-over-month period.

In Q3 2021, Manulife reported core earnings growth of 10% to $1.5 billion. Meanwhile, APE sales climbed 5% year over year to $1.4 billion. Capital markets surged in 2021, which powered Global Wealth and Asset Management net inflows of $9.8 billion in the third quarter — up from $2.2 billion in Q3 2020.

This dividend stock last had a very favourable P/E ratio of 6.9. Manulife last paid out a quarterly dividend of $0.28 per share. That represents a solid 4.7% yield.

One more cheap dividend stock to buy before the new year

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is the third undervalued dividend stock I’d look to snatch up in late December. In early November, I’d discussed why energy stocks looked like an attractive hold. Unfortunately, the recent bout of volatility has hit oil and gas prices hard and led to a broad decline for energy equities. Shares of Canadian Natural Resources have climbed 64% in the year-to-date period. The stock has fallen marginally month over month.

The company delivered a much improved $2.2 billion profit in the third quarter of 2021. Shares of this dividend stock possess a favourable P/E ratio of 10. Moreover, it offers a quarterly dividend of $0.588 per share, representing a 4.5% 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 recommends CDN NATURAL RES.

More on Dividend Stocks

Money growing in soil , Business success concept.
Dividend Stocks

Dividend Stocks vs. GICs: Making the Right Choice for Canadians

Whether to put your capital in GICs or dividend stocks depends on your risk tolerance, investment horizon, and income and…

Read more »

Dividend Stocks

This Real Estate Stock Pays a 15.78% Dividend!

A real estate stock’s dividend yield is nearly 16%, but investors should take note of the risks and unspecified payout…

Read more »

warning or alert
Dividend Stocks

Buy Alert: Why I’m Stacking Brookfield Stock Now

Despite the falling stock price, I have been buying Brookfield (TSX:BN) stock.

Read more »

dividends grow over time
Dividend Stocks

1 Easy Way to Make $2,500 in Dividends Every Year

Canadians can easily make $2,500 in passive income yearly at less capital outlay from a high-yield dividend stock.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: How Much Should You Invest to Earn $500 Every Month?

Here's how blue-chip TSX dividend stocks such as Emera can help you earn a passive stream of dividend income.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Where to Invest in Oil Stocks in October 2023

Suncor Energy is an oil stock to invest in today, as its strong balance sheet and cash flows enable it…

Read more »

Canadian Dollars
Dividend Stocks

The Best TSX Stocks to Invest $5,000 in October 2023

The bearish market momentum of October 2023 has created a ripe time to buy three TSX stocks that can outperform…

Read more »

Increasing yield
Dividend Stocks

2 TSX Dividend Stocks With Lucrative Yields in October 2023

These stocks pay great dividends that should continue to grow.

Read more »