TFSA Investors: 2 Unstoppable Dividend Stocks I’ll Buy Over and Over

Not only are these dividend stocks a great buy for passive income, but they’re each a steal in terms of fundamentals for a solid rebound opportunity.

| More on:
data analyze research

Image source: Getty Images

There are so many dividend stocks out there that investors have been looking at lately — especially these days. Fixed-income stocks and exchange-traded funds (ETF) in Canada have seen cash inflows at astounding levels, with growth stocks considered somewhat a thing of the past.

With a recession likely to hit in the first half of 2023, investors are preparing with dividend stocks now. As they should! But also, let the last few years be a lesson for you. Take this opportunity while shares are down to buy up stocks you’ll be happy to own years from now. Dividend stocks that won’t just recover but will show solid growth from here on out.

goeasy stock

First up, we have goeasy (TSX:GSY), a company that saw an enormous amount of growth over the last few years, only to come crashing down. But goeasy stock hasn’t done anything to deserve the drop in share price.

This company continues to see recored loan originations, creating sustainable revenue that puts it ahead of other tech stocks. That’s why it’s managed to create a dividend that’s stood the test of time. Since coming on the market in the 1990s, shares have climbed 13,952%! Meanwhile, its dividend, currently at 3.42%, has risen by a compound annual growth rate (CAGR) of about 0.68% in the last decade alone.

While that’s not a massive amount of dividend growth, it’s great when you consider the amount of share growth we’ve been seeing. Growth that’s likely to pop right back up after a recession.

goeasy stock is now one of the dividend stocks that looks like a steal. It currently trades at 10.89 times earnings, with shares down 40% year to date. Should shares bounce back to 52-week highs, that’s a potential upside of 74% as of writing!

CIBC stock

Another of the dividend stocks I’ll continue to buy again and again is Canadian Imperial Bank of Commerce (TSX:CM). CIBC stock has long been a solid choice for those seeking dividends. It offers the highest yield of the Big Six banks but also trades at a steal these days.

That’s especially when you consider the growth the company has seen in the last few decades as well as the growth it could see in the future. CIBC stock has been steady, but analysts worried about its exposure to the housing sector. That hasn’t necessarily changed, but CIBC stock does now also see more clients coming for its all-star customer service offerings.

Shares for CIBC stock have climbed 535% in the last two decades alone, and we could see more of this similar growth in the years to come. Meanwhile, its dividend has grown at a solid clip by a CAGR of 6.03% as of writing in the last decade.

With a 6.16% dividend yield right now, you can again that fixed income while shares trade at just 8.25 times earnings. Plus, shares are down 22% year to date, offering a steal to jump on. Should shares soon recover to 52-week highs, that’s a potential upside of 51% as of writing.

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

More on Dividend Stocks

Dividend Stocks

3 Canadian REITs That Pay Out Every Month

$10 can buy you a stake in a REIT that pays monthly distributions yielding 8.2% annually. CT REIT and another…

Read more »

A meter measures energy use.
Dividend Stocks

3 Reasons to Buy Utility Stocks in 2023

Here's why adding utility stocks to your portfolio is a smart idea, as we face significant uncertainty in 2023.

Read more »

Modern buildings in business district
Dividend Stocks

2 Top Residential REITs to Buy in February 2023

These two top residential REITs to buy offer attractive passive income as well as long-term growth potential.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

TFSA Investors: Make $102/Month Without Lifting a Finger

Here’s an amazing monthly Canadian dividend stock that can help TFSA investors earn reliable passive income for years.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Passive Income: Earn $129/Month Tax Free

Do you seek passive income? Leverage your TFSA to earn tax-free passive income via these Dividend Aristocrats.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Invest $23,000 in 2023 to Create Passive Income

Here's how income-generating cash cows such as Canadian Utilities and TC Energy can help you earn over $1,000 in annual…

Read more »

Early retirement handwritten in a note
Dividend Stocks

2 High-Dividend Stocks to Buy Today for Early Retirement

You can buy these two high-dividend Canadian stocks right now to help you plan an early retirement from work.

Read more »

worry concern
Dividend Stocks

Worried About Market Downturn? Buy This High-Yielding (6.3%) Dividend Stock

The stock market has been pretty volatile lately. It’s better to have a balanced portfolio that can perform in every…

Read more »