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.
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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.
