2 Top TSX Dividend Stocks to Buy Right Now

Canadians navigating a choppy market should target TSX dividend stocks like Cogeco Communications Inc. (TSX:CCA) before April.

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The S&P/TSX Composite Index climbed 180 points on Wednesday, March 29. Some of the top-performing sectors on the TSX included health care, base metals, information technology, and battery metals. Canadian stocks have broadly put together a solid stretch to close out the month of March. However, an ongoing crisis in the global banking sector and continued quantitative tightening should keep investors on their toes.

Today, I want to target two top TSX dividend stocks that are worth snatching up right now. Let’s jump in.

This top TSX dividend stock just sent off a buy signal

CI Financial (TSX:CIX) is a Toronto-based publicly owned asset management holding company. Shares of this TSX dividend stock have plunged 16% month over month as of close on March 29. That has pushed the stock into negative territory in the year-to-date period. Its shares are now down 38% year over year.

Financials have been hit hard, as the Bank of Canada (BoC) and other central banks in the developed world have moved forward with an aggressive rate-tightening policy. This was crafted in response to soaring inflation that emerged in the aftermath of the COVID-19 pandemic. The BoC recently stated that this quantitative tightening program was likely to last until 2025, as the central bank works on its bloated balance sheet.

This company released its fourth-quarter (Q4) and full-year fiscal 2022 earnings on February 24, 2023. It reported total assets of $375 billion to close out the fiscal 2022 year. Total revenues rose to $2.33 billion compared to $2.16 billion for the full year in fiscal 2021.

Shares of this TSX dividend stock currently possess a very favourable price-to-earnings (P/E) ratio of 7.9. The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. CI Financial last had an RSI of 28. That puts this dividend stock in technically oversold territory. It offers a quarterly dividend of $0.18 per share. That represents a very strong 5.7% yield.

I’m still looking to stash shares of this dirt-cheap dividend stock

Cogeco Communications (TSX:CCA) is the second TSX dividend stock I’d look to snatch up in the early spring season of 2023. This Montreal-based communications corporation operates in two segments: Canadian Broadband Services and American Broadband Services. Shares of Cogeco have declined 19% so far in 2023. This dividend stock has plunged 39% compared to the prior year. Investors can look closer at its recent performance with the interactive price chart below.

Investors can expect to see this company’s next batch of fiscal 2023 results in April. In the first quarter of fiscal 2023, the company delivered revenue growth of 6.1% to $762 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a clearer picture of a company’s profitability. Cogeco delivered adjusted EBITDA growth of 5.1% to $367 million in Q1 FY2023.

This TSX dividend stock possesses an attractive P/E ratio of 6.8. It is trading in favourable value territory compared to its industry peers. Meanwhile, it offers a quarterly dividend of $0.776 per share, which represents a very solid 4.9% yield. This is a telecom stock I’m still looking to stack in the early spring season.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends CI Financial and Cogeco Communications. The Motley Fool has a disclosure policy.

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