When hunting for cheap dividend stocks on the TSX, it’s key to keep an eye out for companies with solid histories of consistent dividend payments. Looking for a decent dividend yield, while making sure it’s sustainable, it’s the best option. Anything too high might be a red flag.
Also, check the payout ratio to ensure the company isn’t stretching itself too thin to keep investors happy. Or, at the very least, make sure it has a strategy to come back. And lastly, consider the company’s fundamentals, like its revenue and profit trends, to make sure it has the strength to keep those dividends flowing. With that in mind, these three stocks might be prime subjects.
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True North REIT
True North Commercial Real Estate Investment Trust (TSX: TNT.UN) stands out as an attractive option for investors, particularly those seeking high yields in the real estate sector. With a forward annual dividend yield of around 15.9% at writing, this stock offers substantial income potential. Thus making it appealing to dividend-focused investors. The stock faces challenges, such as a decrease in quarterly revenue and a high payout ratio. However, the trust’s ability to maintain strong cash flow from its portfolio of commercial properties indicates a commitment to sustaining its generous dividend.
Moreover, TNT.UN is trading at a relatively low price compared to its book value, suggesting that it might be undervalued. This could present an opportunity for investors looking to buy into a REIT at a discount, especially if the broader commercial real estate market stabilizes. Of course, it’s essential to consider the risks, including its high debt-to-equity ratio and negative profit margin. Yet the potential rewards, particularly through dividends, make TNT.UN a compelling option for those willing to take on a bit of risk for higher returns.
Fiera
Fiera Capital (TSX: FSZ) is an intriguing option for investors seeking both growth potential and substantial income. With a forward annual dividend yield of around 11.6% at writing, FSZ offers an attractive return for income-focused investors, especially in today’s volatile market. The stock faced some recent challenges, including a dip in quarterly earnings growth. However, the company’s robust operating margin and solid return on equity of 22.95% demonstrate its ability to generate significant profits from its operations.
Plus, FSZ has shown resilience with a year-over-year increase in revenue, reflecting its capacity to navigate market fluctuations effectively. Trading at a relatively modest price compared to its earnings, FSZ appears to be an undervalued opportunity. The company’s strong dividend history and potential for capital appreciation make it a compelling choice for those looking to diversify their portfolio with a stable, income-generating stock.
Slate Grocery REIT
Slate Grocery REIT (TSX: SGR.UN) is an excellent option for investors looking for a reliable income-generating investment with a strong focus on stability. This real estate investment trust (REIT) specializes in grocery-anchored retail properties. These are known for their resilience, even in volatile economic times. With a forward annual dividend yield of 9.15% at writing, it offers an attractive income stream that is especially appealing in a low-interest-rate environment. The consistent demand for grocery-anchored retail ensures steady cash flows, thereby making SGR.UN a dependable choice for income-focused investors.
Additionally, SGR.UN is trading at a price that is appealing relative to its book value. The REIT is now offering a price-to-book ratio of 0.80, indicating it might be undervalued. The REIT’s strong operating margins and a solid book value per share of $11.60 further support its position as a sound investment. It holds a portfolio anchored by essential retail properties. Therefore, Slate Grocery REIT is well-positioned to deliver steady returns and capital appreciation over the long term.
