If you’re looking to put more money to work in dividend stocks, the key is to buy companies with a solid track record of paying and growing dividends consistently. Look for strong cash flow, low payout ratios (so they aren’t giving out more than they can afford), and ideally businesses in stable industries like utilities or consumer goods.
It’s also good to check if the stock is undervalued, so you can get in at a lower price. This boosts your yield!
Here are three TSX dividend stocks that are primed and ready for investment right now.
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Slate Grocery REIT
Doubling up on Slate Grocery REIT (TSX:SGR.UN) could be a smart move if you’re looking for stable and growing dividends, particularly in a challenging economic environment. SGR.UN focuses on grocery-anchored real estate properties. This means its tenants are typically recession-resistant, providing consistent income even during tougher times.
While quarterly earnings growth year over year was down slightly, the real estate investment trust (REIT) maintains a high operating margin of 75.70%, showcasing its efficiency and ability to generate cash flow.
As for valuation, the company is trading below its 52-week high. With its current price-to-book ratio at just 0.87, the stock looks undervalued, especially given its consistent dividend payments. Its forward annual dividend yield of 8.49% is impressive, especially for a stock in such a defensive sector.
Buying SGR.UN means benefiting from its defensive nature and high yield while also tapping into the long-term potential of the resilient grocery industry.
Capital Power
Another stock worth buying or adding to could be Capital Power (TSX:CPX). It’s a winning move if you’re aiming to secure reliable dividend income with solid long-term growth potential. With a forward dividend yield of 5.15% and a payout ratio of just 48.71%, CPX not only offers a healthy income stream but also leaves plenty of room for future dividend increases.
Despite a dip in quarterly revenue growth of 8.5% year-over-year, the company’s earnings remain strong, with diluted earnings per share (EPS) at $5.05. Plus, Capital Power’s steady focus on renewable energy projects positions it well for future growth, especially as demand for clean energy continues to rise.
Trading just shy of its 52-week high, it’s still within reach for dividend investors looking for a quality stock with a track record of delivering returns. Capital Power’s ability to generate strong cash flow and its commitment to dividend growth make it an excellent choice.
Nutrien
Now to Nutrien (TSX:NTR), which could be another a solid stock to buy today. Nutrien, the world’s largest supplier of crop nutrients, has a forward annual dividend yield of 4.41%. The company’s focus on sustainability and innovation in agriculture could drive growth as global food demand continues to rise.
Nutrien’s recent earnings show a dip in revenue. However, its earnings before interest, taxes, depreciation and amortization (EBITDA) remains healthy at $4.68 billion. And the company’s operating cash flow of $5 billion ensures Nutrien has the liquidity to continue rewarding shareholders.
Trading well below its 52-week high, Nutrien offers a potential entry point for dividend investors with a price-to-book ratio of just 0.96, which indicates that it may be undervalued. Its payout ratio of 133.75% is on the higher side, though Nutrien’s strong cash flow and low debt-to-equity ratio of 53.14% suggest it can comfortably maintain the dividend. Investing in Nutrien gives you a reliable income stream and provides exposure to the essential agricultural sector.
