3 cheap dividend stocks to buy before October


The S & P / TSX Composite Index was up 87 points by mid-afternoon on September 23. Canadian equities have generally rebounded since a difficult start to the year. However, there are still strong low buying opportunities for investors. Today I want to take a look at three undervalued dividend paying stocks that you should consider today.

Consider this undervalued stock in the automotive space

Fleet management of elements (TSX: EFN) is a Toronto-based company providing fleet services and solutions for cars, light vehicles, trucks and MHE equipment. The shares of this dividend stock have risen 1.2% in 2021 at the time of writing. The stock is up 22% from the previous year. It was down 5.5% month over month.

The company released its second quarter 2021 results on July 27. Net sales increased 4.4% year over year to reach $ 235 million. This corresponded to the objective of the company. Meanwhile, adjusted operating income rose 13.8% to $ 126 million or $ 0.20 per share. He said customer demand for new vehicles was up 56% in the first half of the year. The company is expected to experience strong earnings growth and have a strong balance sheet.

The shares of this dividend-paying stock have a strong price-to-earnings ratio of 20. It offers a quarterly dividend of $ 0.065 per share, which represents a modest return of 1.9%.

This telecom dividend stock is worth buying if it goes down

Rogers Communications (TSX: RCI.B) (NYSE: RCI) is one of the leading telecommunications companies in Canada. I had suggested that investors should look to grab this dividend stock earlier this month. Rogers shares fell 1.7% in 2021. It plunged 6.3% month over month, pushing it into the red.

Investors reviewed its results for the second quarter of 2021 on July 21. It saw wireless service revenue growth of 2% as net postpaid wireless subscriber additions reached 99,000. Total revenue increased 8% to $ 7.07 billion for the first six months of 2021. Meanwhile, Adjusted EBITDA climbed 5% to $ 2.76 billion in the year-to-date period. Adjusted net income increased 15% to $ 781 million.

This dividend-paying stock last had a favorable price-to-earnings ratio of 18. Rogers currently offers a quarterly dividend of $ 0.50 per share, which represents a return of 3.3%.

Another cheap dividend stock that offers monthly income

Seniors residence in Siena (TSX: SIA) provides senior living and long-term care (LTC) services across the country. Shares of this dividend stock have climbed 9.3% in the period since the start of the year. The action is up 36% from the same time period in 2020. Last year, I explained why stocks like Sienna were worth targeting as the COVID-19 pandemic put pressure on it. focus on long-term care facilities in Canada.

In the second quarter of 2021, the company posted net income of $ 8.1 million, up $ 1.3 million from the previous year. Sienna declared strong cash of $ 235 million to close the quarter. Canadians should be looking to acquire stocks with exposure to this sector. The aging of the population will increase the population of long-term care facilities, and the pandemic has shown the need for more funding in the future.

This dividend share last paid a monthly distribution of $ 0.078 per share. This represents a strong yield of 6.2%.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Foolish contributor Ambrose O’Callaghan has no position in the stocks mentioned. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.

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