3 Dividend-Paying Commodity Stocks That Look Too Cheap to Ignore

Nutrien (TSX:NTR) and another two commodity dividend plays are worth buying this July.

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There are some pretty cheap community plays right now that pay stellar and very well-covered dividends. And though commodity prices will always fluctuate, perhaps sometimes viciously, I do think that Canadian investors should take advantage of any of the downswings to snag a bit more yield for a somewhat lower price of admission. As always, the top-notch dividend plays tend to be best held for extremely lengthy time horizons.

In this piece, we’ll have a quick look at three names that I think stand out as fantastic deals as we head into the start of summer.

Nutrien

First up, we have shares of agricultural fertilizer firm Nutrien (TSX:NTR), which currently trades at just under $82 per share. With a nice 3.62% dividend yield and a very reasonable 15.9 times forward price-to-earnings (P/E) multiple, the underestimated fertilizer firm may finally be a great pick-up for income investors. Of course, Nutrien has been one of many agricultural commodity producers that have been in a slump since peaking back in early 2022.

With the stock showing signs of life so far in 2025, though, I think it may finally be time to get back into the name despite limited catalysts ahead. At the end of the day, Nutrien has some impressively low operating costs, and while fertilizer prices may not soar anytime soon, I think that long-term investors can find safety with the above-average payout and the consistent dividend growth to be had over time.

Though some analysts see little to no upside for fertilizers, I’m inclined to give them the benefit of the doubt, especially at today’s relatively depressed levels. At the end of the day, secular drivers (think the growing world population) will pull through. Nobody knows when, but I think Nutrien is one of the dividend stocks to just stash away in a Tax-Free Savings Account (TFSA) for years at a time.

Cameco

For those seeking stronger newfound momentum, shares of uranium producer Cameco (TSX:CCO) may be an intriguing play as it looks to surge past $100 per share. Indeed, 2025 has been quite the comeback year for the nuclear power play, with the name now up close to 33% year to date. With the nuclear energy boom in full swing, thanks in part to higher energy demands brought forth by the artificial intelligence (AI) revolution, I wouldn’t dare stand in the way of Cameco’s rally.

Of course, the stock is getting a tad expensive, now going for over 63 times forward (yes, that’s forward) P/E. However, if you want a leading uranium producer to play the nuclear power boom, I see no issue in buying a partial position in the name going into July. It’s a well-run commodity firm that may still have room to run as it blasts past the triple digits to make higher highs.

Barrick Gold

Finally, gold is a fantastic hedge that most portfolios should have. And there is no better way to bet on gold, I believe, than a low-cost miner like Barrick Gold (TSX:ABX). It’s not only a cheap stock (15.6 times trailing P/E at the time of writing), but a fairly bountiful one with a 1.9% dividend yield. With a 0.32 beta, you’re getting far less volatility than most other Canadian stocks. And with a good amount of recent momentum (shares up close to 23% in six months), the top-tier miner looks ripe for loading up on.

Sure, gold bullion has had a run, but I don’t think the miners have had enough opportunity to catch up. As the second half plays out, I’d look for ABX stock and the peer group to make up for lost time.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Cameco and Nutrien. The Motley Fool has a disclosure policy.

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