2 Dividend Stock Bargains Under $35 to Buy in 2022 and Hold Forever

Badger Infrastructure Solutions (TSX:BDGI) and Quebecor (TSX:QBR.B) are two great dividend stock bargains I’d look to buy and hold in 2022.

| More on:
think thought consider

Image source: Getty Images

It has been quite the volatility storm lately, not just to the downside, but also to the upside following the week’s big spike. There’s no question that the stock market was oversold and overdue for a bit of relief. Now that we’re in between the highs and the lows, I do think investors looking to punch their ticket into a dividend stock should look to do so if they’re hoping for real returns in the rest of what could be an inflation-filled 2022.

It’s really hard to tell what the U.S. Fed’s next move will be in response to this bout of inflation. With a solid set of fourth-quarter results now in the books, it looks like this market can stomach three, maybe even four rate hikes for the year. Undoubtedly, the Bank of Canada disappointed many with its decision to stand pat on raising rates. By doing so, it’s essentially allowing inflation to persist, and that does not bode well for overly-conservative investors, especially those with too much dry powder on the sidelines.

Canadian dividend stock bargains under $35 to buy right now

Indeed, the correction was a great chance to top up your favourite dividend stocks. While the biggest bargains (especially in the tech sector) have all but evaporated, there remain a few intriguing dividend stocks that are still in a buy zone in my books. And in this piece, I’ll share two of them with you.

Without further ado, consider Badger Infrastructure Solutions (TSX:BDGI) and Quebecor (TSX:QBR.B), two beaten-up dividend stocks that I think could be poised to rally higher by year-end.

Badger Infrastructure Solutions

Badger is a mobile soil excavation service provider that’s been feeling considerable pressure on its operating margins in recent quarters. With a large number of clients in the oil and gas sector, you’d think that Badger would bounce back as energy giants ramp up business as energy prices continue rocketing higher. There’s no question that the stage looks set for a nice rebound. Management has had their fair share of stumbles, but they’re ready to learn and move on from their mistakes, as they look to capitalize on what could be a generational opportunity at hand.

Yes, non-destructive hydrovac excavation services are a weird, niche place to be. But the service Badger provides is valuable to its clients, and in due time, I do think its margins will get back on track. For now, shares yield a bountiful 2%, far greater than the stock’s historical norms. I think investors ought to think about nibbling on the $1 billion firm before it has a chance to impress after many quarters of disappointment.

Quebecor

Quebecor is another so-called “accidental high-yielder” following its multi-year period of consolidation. Off around 13% from its highs of $35 and change per share, Quebecor is a huge hidden gem in the budding telecom space. Telecoms have been robust over the past year, yet Quebecor is one of the names that didn’t get the jolt its bigger brothers were provided with. Yes, Quebecor is a regional telecom (regional to Quebec), but it has its national ambitions.

Should it expand or acquire Freedom Mobile, I think the fourth major telecom title is up for grabs. And there’s no better firm to grab it than Quebecor. After fluctuating for four years in a wide price channel, I think it’s time to scoop up shares. The stock boasts a 3.53% yield and has room to the upside, as it looks to challenge the Big Three incumbents. I think Quebecor is a worthy competitor and favour it over its peers due to its strong management team and track record of solid returns on invested capital. At 13.6 times earnings, QBR.B looks like a dividend stock bargain for true long-term thinkers.

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

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

3 Canadian Dividend Stocks to Buy Hand Over Fist

These three Canadian dividend stocks each offer a unique opportunity, making them some of the best investments to buy at…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

Retirement Wealth: 2 Oversold Canadian Stocks to Buy Now and Own for Decades

These industry-leading dividend stocks look cheap right now and have increased their distributions annually for decades.

Read more »

Tired or stressed businessman sitting on the walkway in panic digital stock market financial background
Dividend Stocks

2 of the Safest TSX Stocks Right Now

The stock market is heading towards a crash. Investors are seeking the safety of dividends, and these two stocks provide…

Read more »

Payday ringed on a calendar
Dividend Stocks

Want Monthly Passive Income? Try These TSX Dividend Payers

In need of extra cash? These dividend stocks offer passive income each month, and you can pick them up cheap…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Want Safe Passive Income? Here Are 2 TSX Dividend Aristocrats for New Investors

Need some safe passive income? TSX Dividend Aristocrats like Fortis (TSX:FTS) are ideal stocks for new investors to hold in…

Read more »

grow dividends
Dividend Stocks

2 Cheap TSX Dividend Stocks to Buy Now

These top TSX dividend stocks now offer 6% yields.

Read more »

Piggy bank next to a financial report
Bank Stocks

Got $500? Create Passive Income of $500 in Just 33 Years

Only have a bit of cash to invest? By investing in the right stock, you could make $500 in annual…

Read more »

calculate and analyze stock
Dividend Stocks

2 Top TSX Dividend Stocks to Buy Now for a Self-Directed TFSA or RRSP

Top TSX dividend stocks are now trading at attractive prices for TFSA and RRSP investors.

Read more »