3 Canadian Dividend Stocks That Are Dirt Cheap in September

These three dividend stocks offer insane value given their growth and profit, so I would buy in bulk this month!

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 8, 2022 2:45 pm EDT

Looking for cheap stocks? Canadian dividend stocks currently have so many offering huge deals in this economic downturn. What’s more, they remain down even while the TSX shows a few signs of improvement. If you’re looking for a dividend deal, these are the three I would consider this month.

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SmartCentres REIT

SmartCentres REIT (TSX: SRU.UN) currently trades at an incredibly cheap 4.36 times earnings as of writing. Shares of the real estate investment trust (REIT) remain down by 10% year to date, but there could be even more growth in the near future.

After suffering through the drop in retail during the pandemic, SmartCentres is now going through a tough deal with inflation as well. Yet that’s not the only place the company hangs its hat. It’s now looking into multi-use properties, including retirement residences, offering investors even more growth in the near future.

With a dividend at 6.61% and up 70% in the last decade, I would certainly consider the dividend stock during this rebound.

Granite REIT

Another stellar REIT to consider is Granite REIT (TSX: GRT.UN). Granite focuses on the industrial properties currently a necessity during the growth in e-commerce. Small and large businesses alike need these properties, and supply-chain demands, well, demand them! And Granite continues to expand its business by purchasing more and more properties.

As we continue to see e-commerce growth, Granite is likely to continue growing in both share price and through its dividend. Yet it remains incredibly cheap trading at just 4.37 times earnings. Yet shares are down 28% year to date, offering a great jumping-in point — especially considering shares of the dividend stock have increased by 206% in the last decade alone.

West Fraser

West Fraser Timber (TSX: WFG)(NYSE: WFG) is the last of the cheap dividend stocks I would consider this month. Inflation has been good to the company, with West Fraser stock posting a net profit of US$762 million during its latest quarter. It seems the pandemic frustrations are now behind this now profitable and growing company.

West Fraser stock currently trades at just 3.28 times earnings and offers a dividend of 1.38%. Shares are down 10.71% year to date, but we’ve seen a rise of about 314% during the last decade alone. And, honestly, we’ll always need lumber — especially as Canada attempts to create enough housing to make it affordable for most Canadians. So, expect great things from this stock and buy it before the month is out.

Bottom line

It’s a great time to be an investor. No, really it is! There are solid, cheap options for every investor to consider. Get out there and start doing some digging and speak with your investment advisor. You could make some choices today that make you rich in the future.