Fire Sale on 3 Generous Dividend-Payers

Many TSX stocks, including three generous dividend-payers, are currently trading at bargain prices.

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The three-day rally heading into the last trading day of October 2022 helped the TSX reduce its year to-date loss to 8.8%. Also, investor sentiment improved following a 50-basis points rate hike, not 75, by the Bank of Canada last week. But despite the advance, many stocks still trade at deep discounts, including high-yield dividend stocks.

If you’re looking for low-priced, high-yield stocks, Corus Entertainment (TSX:CJR.B), Sylogist Ltd. (TSX:SYZ), and Timbercreek Financial (TSX:TF) are screaming buys. You can invest in the generous dividend-payers while they are on fire sale.

Multi-platform opportunities

Corus Entertainment is Canada’s leading media and content company. Despite the rising demand for at-home entertainment, Corus had a rough Q4 fiscal 2022 due to the significant drop in advertising sales. In the three months ended August 31, 2022, the net loss reached $367 million compared to a $19.9 million net profit in Q4 2021. However, free cash flow increased 27% year over year to $44.71 million.

President and CEO, Doug Murphy, said, “In Q4, we experienced meaningfully lower financial results given the impacts of an uncertain economic environment on advertising demand.” Nevertheless, Doug notes the impressive subscriber revenue growth and increased international content sales, notwithstanding the cross-currents in the advertising market.

According to Doug, the immediate courses of action are to manage expenses tightly and maintain a disciplined focus on capital allocation and shareholder yield. Furthermore, Corus will continue to execute its strategic plan and priorities as it builds on the progress in maximizing multi-platform television opportunities. At only $2.15 per share (-52.61% year-to-date), the dividend yield is 11.16%.

Solid organic growth

Sylogist is down by nearly 53%, although the business is doing good. In Q3 fiscal 2022, management reported record revenue of $13.7 million, or 44% higher than a year ago. Gross profit also increased 26% year over year to $8.5 million.

The software-as-a-service company provides comprehensive enterprise resource planning (ERP) and constituent relationship management (CRM) solutions to public service and non-profit organizations. President and CEO, Bill Wood, said Sylogist achieved a significant milestone in Q3 2022 and delivered a strong EBITDA margin of more than 31%.

Wood said the numbers show that Sylogist’s growth strategy is taking hold. Indeed, management is executing on its plan and hitting the marks. If you invest today, the small-cap tech stock trades at $5.80 per share and pays a hefty 8.67% dividend.

Benefits from rapid rate increases

Timbercreek Financial provides structured financing solutions for shorter-duration terms (not more than five years). According to management, the $652.7 million non-bank, commercial real estate lender generates strong risk-adjusted yields for investors. This performance is achieved through underwriting, active management, and strong governance.

CEO Blair Tamblyn said interest rate hikes benefit Timbercreek’s floating rate portfolio and translate into higher interest income. She adds that while rapid rate increases impact short-term transaction volume, it generally creates opportunities for flexible alternative lenders.

Thus, expect Timbercreek to take advantage of current conditions. At $7.77 per share (-13.6% year to date), the dividend yield is a juicy 8.87%.

Many considerations

Corus Entertainment, Sylogist, and Timbercreek Financial are among today’s bargain deals. However, the high yields should be one of many considerations. Before firming up your decision, you must also understand the business’ inherent risks and growth opportunities.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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