3 Discounted Dividend Stocks to Buy Today

Canadians looking to take advantage of a hot market should grab dividend stocks like Vermilion Energy Inc. (TSX:VET)(NYSE:NET) today.

| More on:
value for money

Image source: Getty Images

Canadian markets were on fire on March 29, as the TSX continued to build momentum after its dip in the beginning of March. That said, there are still many undervalued dividend stocks that are available to Canadian investors right now. Today, I want to look at three of the top options to snatch up at the end of March. Let’s jump in.

This income-focused energy stock is dirt cheap right now

Vermilion Energy (TSX:VET)(NYSE:VET) is a Calgary-based company that is engaged in the acquisition, exploration, development, and production of petroleum and natural gas in North America and around the world. Shares of this dividend stock have climbed 65% in 2022 as of close on March 29. The stock has soared 185% in the year-over-year period.

Earlier this month, I’d discussed the oil bull market and suggested that investors get in on the energy space. The company unveiled its fourth-quarter and full-year 2021 results on March 7, 2022. In Q4 2021, funds flow from operations (FFO) climbed 23% year over year to $322 million. Meanwhile, net earnings jumped to $345 million compared to a net loss of $147 million in the fourth quarter of 2020. For the full year, FFO surged 83% from 2020 to $920 million. Moreover, free cash flow increased to $545 million over $134 million in 2020.

This dividend stock still possesses a very favourable price-to-earnings (P/E) ratio of 3.8. It offers a quarterly dividend of $0.06 per share, which represents a 2.7% yield.

Here’s an undervalued dividend stock to snatch up in late March

Back in November 2021, I’d discussed why real estate investment trusts (REITs) were a fantastic source of income. PRO REIT (TSX:PRV.UN) is a Montreal-based REIT that owns a diversified portfolio of commercial properties across Canada. Its shares have increased 10% so far this year. The dividend stock is up 16% from the same period in 2021.

The company released its final batch of 2021 results on March 23. Its property revenue delivered 11% growth in 2021. Meanwhile, net operating income increased 14% to $46.2 million. Adjusted funds from operations (AFFO) climbed to $25.0 million compared to $22.4 million in the prior year.

Shares of this dividend stock last had an attractive P/E ratio of 4.5. Better yet, it offers a monthly distribution of $0.037 per share. That represents a tasty 6% yield.

One more discounted dividend stock to buy today

Russel Metals (TSX:RUS) is the third dividend stock I’d look to snatch up in this hot market. The Toronto-based company is engaged in the metal distribution business. Its shares have climbed marginally in the year-to-date period. The stock is up 29% year over year.

Investors got to see its Q4 2021 results on February 10. Revenues rose to $1.14 billion in Q4 2021 compared to $671 million in the previous year. Meanwhile, it posted total revenue of $4.20 billion for the full year — up from $2.68 billion in 2020. Adjusted EBITDA climbed to $667 million in 2021 compared to $159 million in the previous year.

Best of all, this dividend stock still possesses a very attractive P/E ratio of 4.8. It offers a quarterly distribution of $0.38 per share, representing a solid 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 VERMILION ENERGY INC.

More on Investing

Arrowings ascending on a chalkboard

5 Canadian Stocks That Have Gained Value Year to Date

Although many Canadian stocks have sold off this year, and by a significant amount, here are five that have actually…

Read more »

Filling up at the gas pumps.
Energy Stocks

Gas Prices Are Hitting Record Highs: 2 Stocks to Buy Now!

Buy Suncor Energy stock, Canada's integrated oil and gas giant that's benefitting immensely, as gasoline prices continue to soar.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Bank Stocks

A Different Bank for a Comfortable Retirement

Want a comfortable retirement? Investing in this different bank today can help you reach that goal through a solid income…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Top Canadian Dividend Stocks to Buy and Hold for the Long Term

These Canadian companies have been paying dividends for more than four decades and have been consistently growing the same.

Read more »

Bank Stocks

Bank of Montreal (TSX:BMO) Raises Dividend: Is the Stock a Buy?

Bank of Montreal is about to get a lot bigger. Should you buy the stock?

Read more »

man window buildings

Where Do Economists Expect Canadian Housing Prices to Fall Most?

Canadian housing prices may be falling -- in some regions, more than others -- but there are still plenty of…

Read more »

Business success with growing, rising charts and businessman in background
Energy Stocks

3 Hydrogen Stocks Set to Become Major Multi-Baggers

These three hydrogen stocks could certainly achieve multi-bagger status in the years to come after they overcome the present-day hurdles.

Read more »

Stocks for Beginners

Starting an Investment Portfolio? Buy These 3 Stocks!

Interested in getting a start in the stock market? Buy these three stocks today!

Read more »