Investing in equity markets is one of the easier ways to create wealth. You don’t require huge capital to start investing. A small but regular investment can help you build wealth in the long term. So let’s get started. Here are my top three dividend stocks that you can buy for under $30.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA) would be one of the safest dividend stocks to have in your portfolio due to its highly franchised business. It collects royalty from its franchisees based on their sales. So, inflation will not have much impact on its financials.
Earlier this month, Pizza Pizza Royalty reported solid fourth-quarter performance, with its same-store sales growing by 13%. The reopening of non-traditional restaurants drove its same-store sales. Besides, the company opened 45 new restaurants in 2022, contributing to the royalty pool growth. Amid the expansion of the royalty pool, the company’s adjusted EPS (earnings per share) grew by 11.1% for the quarter.
Supported by solid financials, the company’s management raised its monthly dividend by 3.7% to $0.0725/share, with its yield for the next 12 months at 6.39%. Notably, Pizza Pizza Royalty trades at an attractive NTM (next 12 months) price-to-sales and NTM price-to-earnings multiples of 0.7 and 14.8, respectively, making it an attractive buy.
Telus
Second on my list would be Telus (TSX: T), one of the three leading players in the Canadian telecom industry. The demand for telecommunication services is rising in this digitally connected world, thus expanding the total addressable market for the company. Amid the growing demand, the company has adopted an aggressive capital investment program to expand its 5G and broadband infrastructure. The company added over 1 million customers last year through these growth initiatives. Also, its revenue and adjusted EBITDA grew by 8.6% and 9.5%, respectively, in 2022.
Meanwhile, Telus’s management is optimistic about its growth prospects and expects double-digit growth in its revenue and adjusted EBITDA this year. The management also hopes to generate a free cash flow of $2 billion. So, I believe the company’s payouts are safe. Telus, which has raised dividends for the last 19 consecutive years, pays a quarterly dividend of $0.3511/share, with its yield is currently at 5.17%.
Savaria
My final pick would be Savaria (TSX: SIS), which reported solid fourth-quarter performance last week. Its revenue and adjusted EBITDA grew by 11.9% and 13%, respectively. Growth across three segments drove its topline, with the adapted vehicle segment posting an impressive 53% organic growth.
Despite the contraction of the adjusted EBITDA margin in the accessibility segment, the company’s overall adjusted EBITDA margin increased from 15.9% to 16% amid the expansion in patient care and adapted vehicle segments. Additionally, the company’s management has provided optimistic guidance for this year, projecting revenue to grow by 8-10% while improving its adjusted EBITDA margin from 15.2% to 16%. Along with organic growth, the successful integration of Handicare and the synergies from the acquisition could boost its financials. So, Savaria’s growth prospects look healthy.
Meanwhile, Savaria pays a monthly dividend of $0.0433/share, with its yield for the next 12 months at 3.27%. Equally appealing, its valuation looks attractive, with its NTM price-to-sales multiple standing at 1.2.
