Image source: Getty Images
Over the past few trading days, stocks have started to bottom and rebound as investors look to take advantage of all the bargains this market offers. From high-risk Canadian tech stocks to low-risk dividend stocks, there are tons of opportunities for investors to buy now when the broader market is cheap.
Of course, it’s almost impossible to predict whether this is actually the bottom or just a temporary pause in a bigger selloff. While there are always risks in the markets, what we do know is that if you find high quality companies and buy them when they are undervalued, you can be sure of own, no matter what the market does.
It is better to buy a little early at a price that is still reasonable and undervalued, than to miss the opportunity completely, fearing that the shares will continue to sell.
If you’re looking to find cheap Canadian dividend stocks in this environment, here’s one of the best opportunities investors can take advantage of.
A leading Canadian retail stock that continues to impress
One of the best Canadian dividend stocks to buy, especially when cheap, is canadian tire (TSX:CTC.A), the well-known retail company.
Canadian Tire is a stock that, despite being impacted by the shutdowns, has done exceptionally well during the pandemic. Much of this was due to increased demand for its products, while the pandemic limited consumer discretionary spending in other categories such as travel.
As the pandemic subsided, many thought Canadian Tire would see a slowdown in sales growth. Quite the opposite has happened, however, and Canadian dividend stocks continue to prove that they can perform in any economic environment.
In its recent earnings report, to say the stock shattered earnings might be an understatement. Canadian Tire reported earnings per share of $3.06, well above the consensus estimate of $1.70. Surprisingly, it also increased its dividend by 25%.
So, with Canadian Tire now paying $6.50 a year, the stock offers investors a yield of around 3.6% and has more than doubled its dividend in the past five years alone.
Canadian Tire is one of the cheapest dividend stocks to buy right now
With trailing 12-month earnings per share (EPS) of $18.97, Canadian Tire is on track to meet its target of $26 EPS by 2025. Additionally, trading at approximately $180 per stock today, the stock has a price to earnings ratio that is less than 10 times.
So if you consider the dividend yield that Canadian Tire offers, its growth potential, and the fact that it continues to show that it can perform well in any environment, it’s definitely a top notch company that you can buy with confidence and keep for the long haul.
Plus, the fact that it trades at less than 10 times earnings makes it incredibly cheap and one of the best Canadian dividend stocks to buy right now.
Therefore, while it is not excluded that the price of Canadian Tire will fall further if the market decline were to worsen over the next few weeks, the value that the stock currently offers is also an opportunity not to be missed. not miss.
If you think Canadian Tire is a blue chip company and it makes sense in your portfolio, you might want to seriously consider pulling the trigger on this high dividend growth stock, especially while it’s down. still undervalued.