My 3 Favourite TSX Dividend Stocks Right Now

These dividend stocks have been a favourite for a while, but even more so now that they trade at such cheap valuations!

| More on:
Increasing yield

Image source: Getty Images

Dividend stocks remain hugely popular on the TSX today. These passive income performers provide you with income no matter what the market is doing. And lately, it has not been doing well.

Though there is some light at the end of the tunnel. In fact, the TSX is up about 10% in the last month alone. The Canadian big board continues to climb as July inflation numbers have come down to 7.6% year-over-year. And it’s led many investors running towards growth stocks. So, why can’t you have both?

With that in mind, these three dividend stocks are my favourite on the TSX today. Each offers up substantial income through dividends, but growth in share price as well. Especially for long-term investors.

1. NorthWest Healthcare

My number one choice for dividend stocks is still NorthWest Healthcare Properties REIT (TSX:NWH.UN). This stock has it all. Shares are up 7% in the last month, and only down 1.7% year to date. That’s despite posting strong earnings again and again, bolstered by strong occupancy rates for the healthcare real estate investment trust (REIT). Occupancies average 14.1 years at the time of writing.

Yet NorthWest is a steal. Shares trade at just 7.5 times earnings, all while locking in a dividend yield of 6.1%. That would bring in passive income of $305 per year from a $5,000 investment. Plus, it’s one of the dividend stocks that pays out on a monthly basis. So it really is a strong performer that’s only growing stronger, all while paying out a significant dividend.

2. CIBC

The Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) was a favourite before, but it’s even more of a favourite since the Big Six Bank’s stock split. While this has nothing to do with the overall performance of the company, it does make it more affordable for those of us without thousands to invest on a regular basis.

And yet again, it’s one of the dividend stocks that’s also a steal. The Big Six Banks don’t perform well during a financial crisis, but they sure come out of it fast. Look back at any downturn and you’ll see them rebound within a year. That goes for CIBC stock as well. So you can now lock in a dividend yield at 4.95%, all while picking it up at 9.7 times earnings.

Shares currently are down 5% year to date, but have rebounded 15% in the last month alone! A $5,000 investment could bring in dividends of $242 per year as of writing.

3. Loblaw

Now my last of the dividend stocks that remains a favourite is Loblaw (TSX:L). You’ll notice it’s not as high as the others, and that’s because it’s more of a balancing act here for me. It offers me the stability in income that comes from grocery chains, the growing business of the Loblaw powerhouse, while also locking in a consistent dividend yield of 1.37%.

Loblaw proved its worth during the pandemic as an essential business, and today it is again thanks to its growing base. Its loyalty program touches just about every aspect of daily living, from gas to groceries. Plus it has luxury grocery stores as well as cheaper models for consumers. And while it trades at a fair $120 per share, I believe it will continue to grow out of this bear market.

Shares are actually up 17.8% year to date, about 1.5% in the last month.

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 Amy Legate-Wolfe has positions in CANADIAN IMPERIAL BANK OF COMMERCE, LOBLAW CO, and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Dividend Stocks

Electricity high voltage pole and sky
Dividend Stocks

Fortis Stock: Should You Buy, Sell, or Hold Today?

Fortis is down 15% from the 2022 high. Is the stock now oversold?

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Top 2 REITs to Buy Before Yields Fall Along With Interest Rates

Canadian Apartment Properties REIT (TSX:CAR.UN) is just one REIT that could gain when rates really start to tumble.

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Where to Invest $10,000 in June

Canadian small caps are widely outperforming the TSX, and REITs, including Dream Industrial REIT (TSX:DIR.UN) could recover as interest rates…

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Finally, This REIT ETF Could Be the Best Buy of 2024

This ETF is finally looking up, with enormous returns already in 2024. And a high dividend yield that should only…

Read more »

dividends grow over time
Dividend Stocks

3 Canadian Stocks Poised to Double by 2025

Three TSX stocks could benefit from an improved market environment, and break out and double by 2025.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Why Park Lawn Stock Nearly Doubled Last Week

Park Lawn (TSX:PLC) stock saw shares surge by 67% after the announcement that it would be going private as early…

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

Claim CPP at 60? Here’s Why it Could Pay Off Big

Claiming the CPP at 60 has financial consequences but could be advantageous and more beneficial to some prospective retirees.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

Rate Cut Tailwinds: A Dividend Dynamo Ready to Fly

SmartCentres REIT (TSX:SRU.UN) is a great high-yield play to own if you think rates will fall off from here.

Read more »