Canadian investors seeking out cheap dividend stocks right now have a slew of options. However, there are some trading at dirt-cheap prices to consider among TSX stocks. Today, I’m going to look at the best bang for your buck when it comes to dividend stocks to create passive income for Motley Fool investors.
BCE
One of the best dividend stocks to consider for passive income right now has to be BCE (TSX: BCE)(NYSE: BCE). As Canada’s largest telecommunications provider, the company offers years of dividend growth. But on top of that, it’s seen revenue increase from its fibre-to-the-home network combined with the 5G rollout.
Taken together, BCE offers substantial growth at a great price. Shares are about where they were at the beginning of the year but down from March levels. It trades at 2.96 times book value and has grown 152% in the last decade. That’s a compound annual growth rate (CAGR) of 9.69%.
As for the dividend, it’s a high one among dividend stocks currently at 5.78%! Further, it’s grown at a CAGR of 5.52% in the last 10 years.
Manulife
Financial institutions have been hit hard, and that includes Manulife Financial (TSX: MFC)(NYSE: MFC). Yet this is one of the dividend stocks due for a huge recovery when a rebound happens on the TSX today. The company has an international portfolio of wealth and asset management and insurance options. This provides you with diversified income from one of the TSX’s top dividend stocks.
Yet again, Motley Fool investors can buy up this stock on the TSX today trading at just 4.85 times earnings! Shares are down 4% year to date, which is beating the TSX. Further, shares are up 207% in the last decade for a CAGR of 11.86%.
As for the dividend, it offers a 5.99% yield among dividend stocks, which has grown at a CAGR of 7.97%.
Power
Last but certainly not least is Power Corporation of Canada (TSX: POW). Similar to Manulife, it offers Motley Fool investors a global portfolio but focuses on the insurance sector. Private insurance remains strong, and it remains one of the safer choices on the TSX today.
Yet among dividend stocks, it’s considered incredibly cheap, trading at just 8.18 times earnings. And for some reason, shares are down a whopping 16.59% on the TSX today year to date. Yet looking back, shares are up 133% in the last decade for a CAGR of 8.8%.
And again, it has a notable dividend yield of 5.83%, which has grown at a CAGR of 4.43% in the last 10 years.
Foolish takeaway
If you’re a new investor or have been in the markets for years, these are strong dividend stocks that any Motley Fool investor should have. Each offers stable, long-term passive income through dividends and strong business models. Further, they’ve demonstrated superior growth and safety over the last decade and longer. And, of course, when the market rebounds, each has a stable path towards growth not only now but for years to come.
