NWC:CC - 2 Dirt-Cheap Dividend Shares I'd Buy for Long-Term Passive Income
2023-04-12 09:30:00 ET
Today, I’m not looking at high-yield dividend stocks. Instead, we’re focusing on passive income that lasts. That doesn’t necessarily mean that we’re locking up dividend yields at incredibly high rates. But in this case, it means we’re picking up valuable companies that are set to continue growing and dividend yields made to last.
That lasting part is important, as it’s long been a top investing strategy to hold long term. Again and again, it’s proven that solid, long-term holds can do better over time than even some of the best growth stocks on the market.
Today, let’s look at two dirt-cheap dividend stocks that are bound for even more growth in the years to come.
North West Company
Retail companies are usually ignored during a downturn, and it’s clear why. Rising interest rates and inflation usually lead to less spending, which would mean retail companies don’t do so well. But in the case of The North West Company ( TSX:NWC ) it’s a different story.
North West stock posts up where other companies simply aren’t. These are rural communities or urban environments in northern Canada and Alaska. Basically, their retail brands are the only option. Rising interest rates won’t matter if you have only one store to go to, after all.
Despite its peers falling in share price, North West is actually back to where it was a year ago and up about 12% year to date as of writing. The recent jump came, as the company announced earnings results last week that absolutely soared past estimates.
Yet North West stock still trades in value territory at 15.83 times earnings. So, you can pick up this dirt-cheap stock running on a high with a dividend yield at 3.82% right now.
Brookfield Renewable
Another company on a solid run but still absurdly cheap is Brookfield Renewable Partners ( TSX:BEP.UN ). Brookfield stock fell in the last year, as interest rates and inflation put pressure on the stock. However, the company recently reported record results that led to a surge in share price.
As the company continues to solidify itself in the renewable energy field once more, it continues to seek out further opportunities. Not only can you look forward to a diverse portfolio of renewable assets around the world but major growth. And that’s on top of already strong growth in the last two decades.
Shares of Brookfield stock remain down by about 17% in the last year, as of writing. However, just as North West, those shares are popping back up. Brookfield stock is now up 15% year to date and holding steady.
If you’re an investor looking for a long-term deal and wanting in on decades of growth in renewable energy, I would sincerely consider Brookfield stock. It currently trades at 1.715 times book value and offers a 4.45% dividend yield as of writing.
Bottom line
High dividend yields are nice. They’re great, actually. But they’re not so great if these stocks won’t last. What’s more, those yields may get higher, but that could only be due to shares dropping.
That is why I would recommend North West stock and Brookfield stock right now. Both have a long history of growth, and more on the way. Each is also going through a solid jump right now, so you can look forward to perhaps more growth in the near term.
Yet the long term is what we always strive for. In the case of these two companies, it’s unlikely you’ll be disappointed.
The post 2 Dirt-Cheap Dividend Shares I’d Buy for Long-Term Passive Income appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners and North West. The Motley Fool has a disclosure policy .
2023