3 Canadian Dividend Stocks That Are Dirt Cheap in September

Investors should target dirt-cheap Canadian dividend stocks like Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF) to start September.

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The S&P/TSX Composite Index was down 314 points in late-morning trading on September 1. The base metals, information technology, and energy sectors had suffered the worst to start the final month of the summer season. Today, I want to look at three Canadian dividend stocks that are firmly in undervalued territory. Investors may want to make a move on these equities in this turbulent market. Let’s jump in.

This top insurance company looks dirt cheap to kick off September

Sun Life Financial (TSX:SLF)(NYSE:SLF) is a Toronto-based financial services company that provides insurance, wealth, and asset management solutions to a worldwide client base. Shares of this dividend stock have dropped 19% in 2022 at the time of this writing. The stock is down 12% year over year.

This company released its second-quarter fiscal 2022 results on August 3. It reported underlying net income of $1.73 billion in the first six months of 2022, which was flat in the year-over-year period. Meanwhile, underlying earnings per share (EPS) rose marginally to $2.97. Insurance sales increased 4% from the prior year to $736 million. Moreover, wealth management and asset management gross flows increased 4% to $57.3 billion.

Shares of this dividend stock currently possess a favourable price-to-earnings (P/E) ratio of 8.9. It offers a quarterly dividend of $0.69 per share. That represents a solid 4.8% yield.

Here’s another undervalued dividend stock to target today

Cogeco Communications (TSX:CCA) is a Montreal-based communications corporation. This dividend stock has plunged 20% in the year-to-date period. Its shares are down 31% compared to the same time in 2021.

Investors got to see Cogeco’s third-quarter fiscal 2022 earnings on July 13. It delivered revenue growth of 16% to $754 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a better picture of a company’s profitability. The company reported adjusted EBITDA of $353 million — up 16% from the previous year. Moreover, profit increased 3.3% to $108 million. Cash flow from operations climbed 32% to $355 million.

This dividend stock last had a P/E ratio of nine. That puts this top communications stock in attractive value territory to kick off the month of September. Cogeco currently offers a quarterly dividend of $0.705 per share, which represents a 3.5% yield.

A top Canadian retailer that is also a discounted dividend stock

Canadian Tire (TSX:CTC.A) is the third and final discounted dividend stock I’d suggest Canadians look to add to start the month of September. The top retailer’s stock has dropped 16% in 2022 as of early afternoon trading on September 1. Its shares are now down 20% from the prior year.

The company unveiled its second-quarter fiscal 2022 earnings on August 11. Retail sales increased 9.9% year over year to $5.36 billion. Meanwhile, Canadian Tire delivered revenue growth of 12% to $4.40 billion. The retailer continued to receive a boost from high gas prices in 2022.

Shares of this dividend stock possess a favourable P/E ratio of 8.6. It last paid out a quarterly dividend of $1.625 per share. That represents a solid 4.2% 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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