The S&P/TSX Composite Index shed 16 points to open the final week of this month on Monday, April 24. Some of the worst-performing sectors included information technology, financials, and health care. Today, I want to zero in on three very cheap stocks that, in addition to offering great value, also provide passive income in this choppy market. Let’s jump in.
This is the first cheap stock I’d snatch up for passive income in late April
Whitecap Resources (TSX: WCP) is the first cheap stock I’d look to snatch up in late April. This Calgary-based oil and gas company is focused on the acquisition, development, and production of oil and gas assets in Western Canada. Shares of this energy stock have climbed 5.5% month over month as of close on April 24. The stock is up 9.3% so far in 2023.
This company released its fourth-quarter (Q4) and full-year fiscal 2022 earnings on February 22, 2023. In Q4 2022, Whitecap Resources delivered petroleum natural gas revenues of $1.11 billion — up from $785 million in Q4 fiscal 2021. Meanwhile, Whitecap achieved record funds flow of $2.3 billion, or $3.74 per share, for the full year.
Shares of this cheap stock currently possesses a very favourable price-to-earnings (P/E) ratio of four. Moreover, Whitecap Resources offers a monthly distribution of $0.048 per share. That represents a strong 5.2% yield. Investors who want value and strong passive income can count on Whitecap Resources for a monthly cash injection right now.
Here’s another monthly dividend stock that offers nice passive income
Bird Construction (TSX: BDT) is a Mississauga-based company that provides construction services throughout Canada. Shares of this TSX stock have dropped marginally month over month as of close on April 24. However, this cheap stock is still up 10% in the year-to-date period. Investors can see more with the interactive price chart below.
In Q4 fiscal 2022, Bird Construction reported construction revenue of $657 million — up 9.9% from the $597 million the company reported in Q4 fiscal 2021. Meanwhile, adjusted net earnings increased to $15.5 million, or $0.29 per share, compared to $13.0 million, or $0.24 per share, in Q4 fiscal 2021. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Bird Construction posted adjusted EBITDA of $30.6 million over $28.3 million in Q4 fiscal 2021. For the full year, Bird Construction reported construction revenue of $2.37 billion — up from $2.22 billion in the prior year.
This cheap stock last had an attractive P/E ratio of 9.6. Passive-income investors won’t be left in the dark. Indeed, Bird Construction offers a monthly dividend of $0.036 per share, which represents a solid 4.7% yield.
One cheap stock that is a surprising Dividend Aristocrat
goeasy (TSX: GSY) is the third cheap stock that offers passive income I’d target in the final trading week of April 2023. This Mississauga-based company provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to Canadian consumers. Shares of goeasy have dropped 15% over the past month. That has pushed the stock into negative territory in the year-to-date period.
In fiscal 2022, goeasy posted adjusted annual diluted earnings per share (EPS) growth of 11% to $11.55. Moreover, its loan portfolio climbed 38% to $2.79 billion. This cheap stock currently possesses a favourable P/E ratio of 10. Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. goeasy stock last had an RSI of 24, which puts it in technically oversold territory at the time of this writing.
On the passive-income side, goeasy last increased its quarterly dividend to $0.96 per share. That represents a solid 4.2% yield. This cheap stock has delivered nine straight years of dividend growth, which makes goeasy a Canadian Dividend Aristocrat.
