Canadian investors are starting to edge their way back into the market once more. And it’s about time, once you actually have cash on hand to invest. Last year, the market did great! And yet, many Canadians didn’t put cash aside into their investment accounts.
You can’t make money if you don’t invest that money, so let’s start small. With that, here are three dividend stocks under $10 that I’d consider no-brainer buys on the TSX today.
DR stock
First up, we have Medical Facilities (TSX: DR), which trades just above $10 at $10.21 as of writing. The company owns and operates specialty hospitals and ambulatory surgery centres in the United States. They focus on non-elective and less complex procedures, such as pain management.
DR stock has been steadily growing its revenue over the years, with a strong history of revenue growth. Most recently, that included strong results from its fourth quarter and full year for 2023. Facility service revenue climbed 7.8% to $122.2 million, with surgical cases up by 5%. Net income furthermore surged by 258% for the full year!
Meanwhile, with shares so low, it’s a strong company to consider for its U.S. exposure to an essential service. Shares jumped 10% after earnings and are now up 14% in the last year alone. All while still trading at 0.4 times sales and 2.23 times book value! Offering huge value. Oh, and did I mention a 3.45% dividend yield to boot?
Surge Energy
Another essential item we still need is oil and gas, and Surge Energy (TSX: SGY) is a great way to get into it. Shares just jumped after earnings, now trading at $6.90 as of writing. The company reported record production for the quarter, though revenue and net income were down from the year before.
Even so, the company remains focused on debt reduction and improving the company’s overall financial health. It’s now believed the dividend stock still trades in value territory by analysts, especially among high oil prices.
Plus, there remains more upside potential as the company pays down debt. With a whopping dividend yield of 7.16% and a trading price of 4.25 times earnings, it’s certainly another dividend stock to consider under $10.
Nexus REIT
Finally, we have Nexus Industrial REIT (TSX: NXR.UN), trading at about $7.50 as of writing. The company is well known for its high dividend yield, which can produce regular income for investors. But there are even more reasons to consider this undervalued stock.
Nexus is in the industrial real estate space, where it’s generally considered there will be a rise due to strong demand for warehousing and distribution space. This comes from an increase in e-commerce use but other sectors as well.
However, the dividend stock has seen some earnings decline, though net income was rising during earnings this week. While there were improvements, investors likely weren’t thrilled that the dividend stock continued to buy up properties while still working on debt. In any case, it still offers an 8.22% dividend yield while offering a 36.5% payout ratio. So, if you’re looking for cash and a rebound should the stock rise after falling 19%, this could be a big winner.
