After some Canadian stocks have sold off in recent weeks, and with many more on months-long selloffs, there is no shortage of investments to consider today. But while much of the focus has been on some of the most popular Canadian stocks, there are lesser-known dividend stocks you can buy that may offer investors even more value in the current environment.
And while many of the highest-quality stocks are the most well-known companies, less-popular investments could offer investors even more value simply because they get less exposure than large caps and more prominent Canadian companies.
If you have cash and are looking to buy stocks amid the current market volatility, here are three dividend stocks to buy now that offer investors incredible value today.
A top recovery stock to buy with tonnes of value and an attractive dividend yield
If you’re looking for dividend stocks to buy that offer both an attractive yield and tonnes of value, American Hotel Income Properties REIT (TSX: HOT.UN) is one you’ll definitely want to consider.
AHIP, as it’s often referred to, is a REIT that owns several premium-branded hotels across numerous states south of the border. This was a business that was heavily impacted by the pandemic, as travel and tourism was one of the hardest-hit industries.
In recent quarters, though, AHIP has shown clear signs of recovering. Its cash flow and other key performance indicators been improving toward pre-pandemic levels. The REIT also reinstated its distribution, making the stock highly attractive for dividend investors.
And while the distribution it pays to unitholders is well below where it was prior to the pandemic, right now, it looks to be sustainable. But even with the REIT paying out less cash, it still currently provides a yield that’s upwards of 5.9%.
So, when you consider the impressive passive income it provides coupled with its recovery potential, it’s easily one of the best Canadian stocks dividend investors can buy today.
A top Canadian media stock paying an ultra-safe dividend
Another lesser-known company that could offer investors a tonne of potential over the coming years is Corus Entertainment (TSX: CJR.B). Corus is a media company that’s trading well undervalued. In addition, it pays an attractive dividend that’s extremely safe.
While the stock hasn’t been performing well in recent months, for long-term investors, it could be an excellent investment. Corus has addressed many of the risks the stock has had and the troubles it’s faced in recent years.
So, with its debt being much more manageable now, there have been potential talks about a dividend increase on the horizon. For now, though, with the stock trading at an ultra-low price-to-earnings ratio of just 5.7 times, Corus has been electing to buy back shares.
Therefore, with Corus now in a much better position, yet still trading undervalued, it’s certainly one of the best dividend stocks to buy now. Plus, after its current selloff, the stock now offers a yield of more than 5.7%. And that dividend is extremely safe, as it has a payout ratio that’s currently only around 30%.
One of the best stocks for dividend investors to buy
Last on the list is a unique stock that offers tonnes of attractive passive income: Diversified Royalty (TSX: DIV). As its name suggests, Diversified Royalty is a company that owns interests in several different businesses that all pay royalties back to the company.
This allows the stock to earn tonnes of cash flow and pay an attractive dividend to investors. So, it’s no surprise that today, Diversified Royalty is the highest-yielding stock on the list, currently paying a dividend with a yield of 7.8%.
The reason that Diversified Royalty is one of the best dividend stocks to buy now is not just for its impressive yield but also because it’s done an incredible job of acquiring different royalty streams across several different sectors.
For example, the stock receives a royalty from franchises like Mr. Lube, a home care provider, a restaurant chain, a massive Canadian realtor company, and even a well-known tutoring business.
Therefore, if you’re looking for attractive passive income, Diversified Royalty is one of the best dividend stocks to buy today.
