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The TSX today is, well, not doing great. Shares of the TSX are down 13.5% from 52-week highs as of writing. And while that’s scary, and will likely remain so in the near future, it does leave an opportunity open for bear-market seekers.
In fact, some of the best buys you can make right now are through the purchase of Canadian dividend stocks. These stocks provide you with income while you wait for the market to make a rebound. That’s cash you can use to pay bills, fund retirement, or simply reinvest back into some safe stocks.
But when it comes to investing in dividend stocks these days, these are the three I would buy in bulk on the TSX today.
First up among dividend stocks, we have Cascades (TSX:CAS), a company which produces, converts, and sells packaging and tissue products in Canada and the United States. Analysts are bullish on this area in general, with pulp prices bottoming out and leading to the resumption of purchasing from China. With this, the sector is on pace for recovery.
With third-quarter earnings now coming in, Cascades stock looks well positioned for growth. That’s especially true, as Cascades now has elevated inventory levels, with pulp prices remaining weak for now but could climb in the next year or so. What’s more, paper packaging names in general will continue to see improved demand here in North America as well. This has led analysts to mark Cascades stock as an outperformer.
Cascades stock now has a dividend yield of 4.18% as of writing, with shares trading at just 0.65 times book value as of writing. Moreover, shares are up 32% in the last year, creating a great opportunity for more growth.
Next up, we have Parkland (TSX:PKI), a company that’s bound for strong organic growth in earnings before interest, taxes, depreciation, and amortization (EBITDA). The company is projected to reach $531 million in EBITDA, up from $471 million the previous year. This could create another surge in share price for the company should it continue on its growth path.
What’s more, analysts have increased their estimates partially because of positive guidance updates from Parkland stock in recent months. With greater confidence in the stock should come greater share performance as well.
Even so, right now, you can pick up Parkland stock with a 3.31% dividend yield among dividend stocks, with shares up a whopping 50% in the last year alone! But honestly, keep picking it up if analysts have anything to say about it.
Pet Valu Holdings
Another of the top dividend stocks to consider for some near-term growth is Pet Valu Holdings (TSX:PET). Analysts believe the stock is set to soar in the coming year or so, with an “outperformer” note attached. While growth is likely to be slower than originally thought, it will still continue, as the market and economy stabilize in the next few months to a year.
Even so, the outlook looks strong for PET stock, with the company still gaining traction through same-store sales. Add in a 1.44% dividend yield, trading at 18.44 times earnings, and shares down 31%. There is a lot of value to be had here. So, it’s definitely one of the dividend stocks to consider these days as well.