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3 Dividend Stocks That Are Too Big a Deal to Miss

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Image source: Getty Images.

Written by Amy Legate-Wolfe at The Motley Fool Canada

There are a lot of dividend stocks out there that remain down in the dumps. Many trade at lows in the double-digits, percentage-wise. And yet, these could be some of the best opportunities on the TSX today.

As the TSX today climbs past the $20,000 point, not reached in months, it could be time to get in on these dividend stocks that remain on sale. And these three are my favourites if you’re hoping to hold long term.

Nutrien stock

Nutrien (TSX:NTR) has been in a lot of hot water in the past year or two. After surging to all-time highs after Russia invaded Ukraine, causing a potash shortage, the company began to fall. This came after the market started a sell off as inflation and interest rates started to rise.

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Since then, shares are at about half of where they were back in 2021. And things haven’t improved much. Both potash and nitrogen prices slumped, causing sales to fall dramatically. Further, a strike in British Columbia caused another major drop in potash sales. Production fell lower than hoped, though the company did manage to report record production.

Many of these issues, however, appear to be short term. Nutrien stock meanwhile seems like a great deal, with the sell off overdone. It now trades at 12.7 times earnings, with a 3.93% dividend yield. So that’s certainly something for long-term investors to consider.

Canadian Utilities

Canadian Utilities (TSX:CU) is another solid option for those looking for dividend stocks on sale. When the market started to fall, investors flocked to CU stock for protection. After all, it’s a utility stock. These companies have long-term contracts that can last years. And because of this, they offer protection.

Yet, too many investors seemed to flock to the company, as there was a sharp sell off in utility stocks afterwards. That’s despite CU stock continuing to move along as normal. The utility continues to expand through acquisitions and organic growth, with cash flowing from long-term contracts allowing it to become a Dividend King.

That’s right, it boasts 50 years of consecutive dividend increases. So, if you’re in for dividends, it’s certainly a steal. Shares trade at just 14.4 times earnings, with a dividend yield at 5.86%. So with shares still down 12% in the last year, it’s a great time to pick it up.

NorthWest REIT

Finally, this stock might seem like a riskier option among dividend stocks. However, NorthWest Healthcare Properties REIT (TSX:NWH.UN) remains a top choice for dividend seekers. That’s because the company remains solid thanks to long-term contracts, giving it an occupancy rate around 97%.

However, recent increases in interest rates and its debt from acquisitions certainly didn’t help. This caused the company to slash its dividend. Now that that’s over with, it looks like it’s a great time to pick up this stock long term for some great dividend income, and returns.

Investors can grab an 8.55% dividend yield on sale, with shares trading at 7.4 times earnings, down 61% in the last year. This REIT’s going to have some work to do, but it looks like it’s already on the path back to profits.

The post 3 Dividend Stocks That Are Too Big a Deal to Miss appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Canadian Utilities?

Before you consider Canadian Utilities, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023... and Canadian Utilities wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 24 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 11/14/23

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Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust and Nutrien. The Motley Fool has a disclosure policy.

2023