3 Incredibly Cheap TSX Stocks to Buy for Passive Income

These passive income TSX stocks are prime for picking up on the TSX today, especially if you have a mind to hold them long term.

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Passive income has proven to be one of the best investments over the last year. With the market down, passive income can at least provide you with fixed cash coming in from your TSX stocks. But that also means many of them don’t tend to be as cheap as they once were.

However, in the case of these TSX stocks, you can still pick them up on the TSX today for a steal. So let’s get right to it.


Nutrien (TSX:NTR) is a strong choice for the investor looking to set it and forget it. The company provides crop nutrients around the world, and has been expanding by leaps and bounds. At first, it was through mergers and acquisitions. Now, it also includes its e-commerce arm as it tried to make its way through the pandemic.

The world only has so much arable land, so crop nutrients like this one are going to be incredibly necessary. Yet Nutrien stock is one of the few that’s managing to merge a fractured industry. Because of this, it’s certainly one I would buy now and hold until I absolutely needed it, using only the passive income in the process.

Yet, Nutrien stock went through a volatile period that sent shares up, and then down. It’s now one of the cheap TSX stocks I would certainly consider at these prices. Shares of the crop company trade at an attractive 5.8 times earnings, up just 6% in the last year. Meanwhile, you can grab a 2.66% dividend yield as of writing.

Slate Grocery REIT

Another strong consideration is essential services such as grocery stores. That’s why Slate Grocery REIT (TSX:SGR.UN) has done so well. Even during the pandemic it was able to leave its doors open, expanding its business and continuing to purchase grocery-anchored properties in the United States.

However, there is still more growth to be had from Slate stock. Earnings continue to come in strong for the company, and it’s proven that because of its essential services, it will be around for years to come. And yet, shares are only up about 5% in the last year.

On top of this, Slate stock trades at just 5.3 times earnings. The grocery REIT is, therefore, one of the incredible cheap TSX stocks I would consider buying on the TSX today. Especially as it boasts a dividend yield at 7.86% for passive income!


Now the Canadian banks haven’t been performing all that well, but Canadian Imperial Bank of Commerce (TSX:CM) has been one of the worst. That’s what happens when you have the most exposure to the Canadian economy and housing market.

But don’t give up on CIBC stock forever. In fact, it’s cheap in a number of ways. The company has been going through rebranding and customer service initiatives that have seen more clients come its way. What’s more, it went through a stock split last year that makes it the cheapest of the Big Six by share price.

Now shares are down 17.5% in the last year alone, and it trades at just 12.2 times earnings, making it valuable in terms of fundamentals. Add on that, you can pick up a dividend yield of 5.45%, certainly making it worth some consideration.

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. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

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