3 Dirt-Cheap Dividend Stocks to Snag Right Now

Volatility and high inflation should drive Canadians to snatch up cheap dividend stocks like Corus Entertainment Inc. (TSX:CJR.B) in April.

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Last month, I’d zeroed in on a handful of dividend stocks that were giving off buy signals. The Canadian market had a rocky start to the second week of April. At the time of this writing, the Bank of Canada (BoC) is preparing to deliver one of its biggest single-day rate hikes in over a decade. Investors should look to scoop up cheap dividend stocks right now. Let’s dive in.

This entertainment stock has stormed back to relevance in recent years

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. It owns and operates popular specialty channels like Teletoon, Treehouse, W Network, and Slice. Shares of this dividend stock were down 6.6% in 2022 as of early afternoon trading on April 12. The stock was down nearly 30% in the year-over-year period.

The company released its second-quarter fiscal 2022 results on April 8. It delivered consolidated revenue growth of 6% in the first six months of fiscal 2022 to $825 million. Meanwhile, free cash flow jumped 11% to $168 million. Corus is still navigating a challenging macroeconomic environment, but it was able to deliver improved subscriber revenue growth.

This dividend stock currently possesses a very favourable price-to-earnings (P/E) ratio of 6.1. Earlier this month, it announced a quarterly dividend of $0.06 per Class B share. That represents a strong 5.3% yield.

Here’s a top dividend stock in the banking space

In late 2021, I’d looked at some of the cheapest bank stocks to target on the TSX. Canadian Imperial Commerce (TSX:CM)(NYSE:CM) also doubles as a dividend stock that is worth snatching up right now. Its shares have dropped 2.7% in the year-to-date period. However, CIBC stock was still up 16% from the previous year at the time of this writing.

This bank unveiled its first-quarter 2022 earnings on February 25, 2022. It reported adjusted net income of $1.89 billion, or $4.08 per diluted share — up from $1.64 billion, or $3.58 per diluted share, in the first quarter of 2021. CIBC benefited from growth across all businesses and a big dip in provisions set aside for credit losses.

Shares of this dividend stock had an attractive P/E ratio of 10 at the time of this writing. CIBC last announced a quarterly distribution of $1.61 per share, which represents a solid 4.4% yield.

Why this dividend stock is also undervalued

TFI International (TSX:TFII)(NYSE:TFII) is a Montreal-based company that provides transportation and logistics services in North America. Shares of this dividend stock have dropped 25% in the year-to-date period. However, the stock was still up 11% from the same period in 2021.

Investors got to see the company’s final batch of 2021 results on February 7. Total revenue rose to $7.22 billion in 2021 — up from $3.78 billion in the previous year. Moreover, adjusted EBITDA climbed to $1.07 billion compared to $699 million in 2020. TFI International delivered adjusted net income of $498 million or $5.23 per diluted share — up from $299 million, or $3.30 per diluted share.

This dividend stock last had a favourable P/E ratio of 11. It offers a quarterly distribution of $0.27 per share, representing a modest 1.2% 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 has no position in any of the stocks mentioned.

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