There are dividend stocks investors buy for regular income, and there are dividend stocks investors buy for passive income. That passive income comes in two forms: returns and dividends. And ideally, investors can find these dividend stocks for a valuable share price.
Today, we’re going to look at three dividend stocks that offer value, regular dividend income, and higher-than-average returns as they make a roaring comeback. So, here are the three I would consider on the TSX today
Alimentation Couche-Tard
First, we have Alimentation Couche-Tard (TSX:ATD), a loved dividend stock for quite some time that has gone through some struggles. ATD stock is a Canadian multinational company specializing in convenience store retailing. The company is one of the largest operators of convenience stores and gas stations in the world.
Over the years, Alimentation Couche-Tard has grown through aggressive acquisitions and organic growth. It has expanded its footprint both domestically and internationally. Notable acquisitions include Circle K, Statoil Fuel & Retail, and CST Brands. And yet, the company’s financial performance has been lacking in the last year.
During the first quarter of 2023, the company reported net earnings of $843.1 million, or $0.85 per diluted share. By the second quarter, this shrunk down to $819.2 million, remaining at $0.85 per diluted share. And by the third quarter, it had shrunk down to $623.4 million in earnings, or $0.65 per diluted share. Yet, the company remains a strong investment for those looking beyond inflation and interest rates.
Right now, costs are high, and fuel prices had a major impact on the company’s performance. But as one of the largest convenience stores in the world, the company is sure to come back. So, while it trades at 18.05 times earnings and offers a 0.93% dividend yield, I would certainly consider the dividend stock.
NorthWest Healthcare
Then there is a company already starting to see a comeback, and that’s NorthWest Healthcare Properties REIT (TSX:NWH.UN). The leading real estate investment trust (REIT) specializes in healthcare properties. It primarily invests in healthcare real estate, including medical office buildings, clinics, and hospitals. It owns and manages a diverse portfolio of properties across various healthcare sectors, including acute care, rehabilitation, and senior living facilities.
The company also went through some trouble as the dividend stock expanded too much, too soon. It then sold off non-core assets to build up its bottom line and refinanced for lower interest rates. This has caused a large improvement in its finances over the last year.
The second quarter of 2023 brought in revenue of $126.5 million and $12.55 net asset value (NAV) per unit. The third quarter saw revenue fall to $122.2 million, with NAV also down to $11.96 per unit. However, there was improvement by the fourth quarter, achieving revenue of $124 million. Furthermore, it reduced its debt and expects to be back in the good books for 2024.
Now, with shares rising, though still down 37% in the last year, and trading at 0.62 times book value and 7.42 times earnings in the last year, you can grab this dividend stock with a 7% dividend yield and look forward to more growth in the near future.
