There are many stocks out there trading down, but certainly not as many trading in value territory. And even fewer that also offer stable and strong dividends. That’s why today, I’m going to focus on these dividend stocks — ones trading in value territory that almost certainly will rise back once more before 2023 comes to a close.
Royal Bank
Royal Bank of Canada (TSX: RY) was my first stock I purchased years ago when I just started investing. And I have yet to get rid of it. There’s a reason. Royal Bank stock is one of the Big Six banks, offering me stable income, even during economic downturns, as it has provisions for loan losses.
This has allowed Royal Bank stock to continue being one of the top dividend stocks in terms of yields as well as increases. Since investing in it, I’ve continued to drip feed into it, watching my cash grow as passive income rises higher. And right now has proven quite worth the effort.
Royal Bank stock trades at just 12.65 times earnings as of writing, with a dividend yield at 3.98% as well. This comes out annually as $5.28 per share. Shares remain down 3% as of writing in the last year but have already climbed 4% year to date.
CAPREIT
The housing situation is only getting worse. Many continue to believe it could take over a decade to get past the red tape to build more affordable homes. Yet there are others that believe another tact should be taken, and that involves rental properties.
Whether it’s townhomes or apartments, companies like Canadian Apartment Properties REIT (TSX: CAR.UN) continue to be a solid investment. CAPREIT has been around for years, and yet there is still so much room to grow thanks to this surge in the need for rental units.
Yet shares remain valuable trading at 0.809 times book value and down 7% in the last year. Though as with Royal Bank, it’s one of the dividend stocks on the rebound, up 11% year to date as of writing. Right now, you can bring in a dividend yield at 3.04% while it lasts.
Freehold Royalties
Royalty companies are solid stocks to invest in, as they aren’t subjected to the ebbs and flows of revenue. Instead, royalties are paid the same amount on a regular basis. In the case of Freehold Royalties (TSX: FRU), this comes down the acquisition and management of a royalty interest in oil and gas in Western Canada.
This might change in the future, as the world shifts to renewable energy, but for now it remains a solid choice. Freehold stock also pays its dividend on a monthly basis, so you can look forward to passive income that arrives like a paycheque each and every month.
Yet again, shares of Freehold stock are down about 4% in the last year, though are up slightly by 2% year to date. It continues to trade at a valuable 10.98 times earnings and offer a dividend yield at 7.02% as of writing. That’s certainly well worth considering among your other dividend stocks.
