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3 Dirt-Cheap Dividend Stocks Up 10% or More in 2022

·3 min read
Money growing in soil , Business success concept.
Money growing in soil , Business success concept.

Written by Amy Legate-Wolfe at The Motley Fool Canada

Can you have it all right now? This market correction would certainly have you think otherwise. The TSX today remains down by 10.6% year-to-date. So it’s no wonder many Canadians are seeking out dividend stocks.

But what if I told you that you could have it all? You could have those dividend stocks, and see them rise higher and higher in 2022 and beyond. Furthermore, they remain dirt cheap at current levels.

Let me give you three stellar options.


Loblaw (TSX:L) is one of the first dividend stocks you should absolutely consider on the TSX today. The company recently reported its earnings and everything was up across the board. Well, except e-commerce, but that’s to be expected as Canadians return to in-store sales.

The company continues to create partnerships through its PC Optimum programs, and keep Canadians choosing its stores. That includes low-cost models like No Frills during a time of inflation. What’s more, shares are up 15% year-to-date. All while trading at 20 times earnings as of writing, and 3.4 times book value.

Loblaw is a dividend stock offering a yield of 1.36%. A $5,000 investment could bring in about $70 per year.

Northland Power

Renewable power companies may be a great long-term investment among dividend stocks. But when it comes to Northland Power (TSX:NPI) you could see even more growth sooner than later. Shares of Northland are already up by 11.4% year-to-date. Yet the stock trades at just 3.2 times book value.

The company also offers a diverse range of clean energy assets, from wind and solar to hydropower and clean-burning natural gas. Further, it operates around the world, from North America and Europe to Latin America and Asia.

If you pick Northland Power as one of your dividend stocks, you will get a yield of 2.93%. A $5,000 investment could bring in $144 annually.


Finally, maybe the best winner of this year is Winpak (TSX:WPK). The packaging company to the food and healthcare industry proved that even during a market correction on the TSX today it can still bolster growth. And yet it continues to trade in value territory among dividend stocks, at just 2 times book value.

Shares of Winpak are up a whopping 20.8% year-to-date. This growth comes from quarter-after-quarter of estimate-beating earnings. And once the downturn in the markets reverses and consumers start spending again, Winpak earnings are bound to reach even higher.

Today you can pick up this dividend stock at a yield of 0.27%. Not high, I’ll grant you. However, it’s still a solid choice given its growth. A $5,000 investment would bring in $13.40 annually.

The post 3 Dirt-Cheap Dividend Stocks Up 10% or More in 2022 appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in LOBLAW CO. The Motley Fool has no position in any of the stocks mentioned.