3 Dividend Stocks I’d Buy Hand Over Fist

These dividend stocks remain a great deal for investors, and ones that I would buy hand over fist in the coming year.

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Passive income is top of mind for Canadians, it’s true. And a popular way to earn it is seeking out dividend stocks in the investing world. But it’s so hard to decipher which stocks will be the winners, and which the duds.

After all, a dividend stock may have a high yield, but that yield may only be high because shares of the company have dropped so low! Which is why today I’m going to look over three dividend stocks I’m buying hand over first on the TSX today.

Brookfield Renewable

Brookfield Renewable Partners LP (TSX:BEP.UN) is a huge win for those seeking long-term income. That’s both from returns and dividends. BEP.UN is at about half the share price it achieved during peak highs, but that’s due to come back again.

In fact, Brookfield stock has a competitive advantage compared to its other renewable energy peers, and that’s cash. The company can make smart acquisitions while prices remain low for many companies, bringing them on board for even more renewable energy growth in the future.

Right now, shares trade at about $35 per share where they have remained for some time. You can therefore grab a 5.13% dividend yield, which is still far higher than the 4.32% average over the last five years. And with a forward price-to-earnings ratio of 345 as of writing, that’s a huge amount of room for this dividend stock to grow.

goeasy

Another dividend stock to consider is actually also a growth stock! Goeasy (TSX:GSY) is a rarity in the investing world, as shares have soared over the last year. This comes from record-level loan originations again and again, despite being around for about 30 years!

Goeasy stock will likely do even better in the near future as the company continues to bring in more loans. That will likely happen as interest rates and inflation falls. With more cash on hand, Canadians will want to take out more loans. So no matter the economic situation, goeasy stock stands to win.

Shares trade at just 14 times earnings over the last year, and you can grab a dividend yield of 2.31%, which is on par with the average of the last five years. Shares are also up 37% in the last year as of writing, but due to perhaps hit over $200 by the end of 2024.

CIBC stock

Finally, you have to go with one of the Big Six Banks if you’re looking for dividend stocks. However, some are rebounding, while others are slow to get back up. That’s why I would choose Canadian Imperial Bank of Commerce (TSX:CM), however, as it stands to make more gains in returns during 2024.

CIBC stock fell on hard times especially due to its investment in the Canadian housing sector. While that won’t likely change until interest rates go down, there is already some strong movement. Shares are now up 5% in the last year, yet it still offers value trading at 11.8 times earnings.

Then there’s the dividend. CIBC stock currently has a super-high 5.9% dividend yield as of writing. This is a fair bit higher than its five-year average of 5.24%, but not so high as to make it risky. It also has a stable payout ratio of 67% as of writing as well. And with shares at about half the price of the other Big Six, CIBC stock looks like a solid choice among dividend stocks right now.

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 Brookfield Renewable Partners, Canadian Imperial Bank of Commerce, and goeasy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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