Written by Ambrose O'Callaghan at The Motley Fool Canada
The Tax-Free Savings Account (TFSA) has boasted an annual contribution limit of $6,000 since it raised the limit in January 2019. It offers a cumulative contribution limit of $81,500 for investors who have been eligible to deposit into the account since 2009. Today, I want to look at three cheap stocks that are worth snatching up in your TFSA, as we approach the midway point in September. Let’s dive in.
This dirt-cheap stock offers up a monster dividend yield right now
Corus Entertainment (TSX:CJR.B) is the first cheap stock I’d suggest for your TFSA in the middle of September. This Toronto-based media and content company operates specialty and conventional television networks and radio stations across Canada and around the world. Shares of this cheap stock have plunged 40% in 2022 as of close on September 12.
This company released its third-quarter (Q3) fiscal 2022 results on June 29. It delivered consolidated revenue growth of 8% to $433 million. Consolidated revenue rose to $1.25 billion in the year-to-date period, which was up from $1.18 billion in the prior year. However, its segment profit dipped 5% from the previous year to $123 million in Q3 FY2022.
Shares of Corus currently possess a very favourable price-to-earnings (P/E) ratio of 4.2. This cheap stock offers a quarterly dividend of $0.06 per share that you can gobble up in your TFSA. That represents a monster 8.2% yield.
Here’s a regional bank that is perfect for your TFSA
Laurentian Bank (TSX:LB) is a Montreal-based regional bank that provides various financial services to personal, business, and international customers. This bank stock has dropped 14% so far in 2022. That has made up the bulk of its losses in the year-over-year period.
Investors got to see this bank’s third-quarter fiscal 2022 earnings on August 31. The bank reported adjusted net income of $58.2 million and $1.24 per diluted share — down 2% and 1% from the previous year, respectively. However, adjusted net income in the first nine months of 2022 rose to $179 million compared to $163 million in the year-to-date period in fiscal 2021. Laurentian Bank was forced to increase its provisions for credit losses (PCL) to $16.6 million in Q3 2022. That mirrored the jump in PCL that we saw for the Big Six Canadian banks.
TFSA investors should be attracted to its solid P/E ratio of 27. Meanwhile, Laurentian offers a quarterly dividend of $0.45 per share. That represents a strong 5.1% yield.
TFSA investors: Don’t sleep on this cheap stock in the telecom space
Rogers Communications (TSX:RCI.B)(NYSE:RCI) is the third and final cheap stock I’d target for my TFSA as we approach the final days of the 2022 summer season. Shares of Rogers have dropped 9.5% in the year-to-date period. That has pushed the stock into negative territory compared to the same time in 2021.
In Q2 2022, this company delivered total revenue growth of 8% to $3.86 billion. Meanwhile, it posted adjusted net income of $463 million and $0.86 per diluted share — up 20% and 13% from the previous year, respectively. This cheap stock last had an attractive P/E ratio of 16. Moreover, Rogers offers a quarterly dividend of $0.50 per share. That represents a 3.6% yield.
Before you consider Corus Entertainment, 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 August 2022 ... and Corus Entertainment 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 27 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 8/8/22
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.