BCE - 3 Undervalued Dividend Stocks to Buy in This Volatile Market
North American stocks were hit hard earlier this week, as central banks have remained committed to their rate-tightening paths in the face of stubbornly high inflation. The Dow plummeted 1,200 points on Tuesday, September 13, which was its worst single-day retreat since June 2020. Meanwhile, the S&P/TSX Composite Index also suffered a sharp triple-digit drop. Fortunately, markets enjoyed a partial rebound the following trading session. Today, I want to zero in on three dividend stocks that have tumbled to discounted levels in this turbulent market . Let’s jump in.
This undervalued dividend stock is one you can trust for the long haul
BCE ( TSX:BCE )( NYSE:BCE ) is a Toronto-based telecommunications and media company that provides wireless, wireline, internet, and television (TV) services to residential, business, and wholesale customers in Canada. Shares of this top telecom have dropped 7.3% in 2022 as of close on September 14. That has pushed the dividend stock into negative territory in the year-over-year period.
The company released its second-quarter (Q2) fiscal 2022 results on August 4. BCE reported operating revenues of $5.86 billion — up 2.9% from the previous year. Meanwhile, adjusted net earnings increased 5.3% year over year to $791 million. Free cash flow jumped 7.1% from the prior year to $1.33 billion.
This dividend stock last possessed a favourable price-to-earnings ratio of 19. It last paid out a quarterly distribution of $0.92 per share. That represents a tasty 6% yield.
Here’s why I’m looking to snatch up Park Lawn on the dip in the middle of September
Park Lawn ( TSX:PLC ) is a dividend stock I’ve recommended for Canadian investors for years. This Toronto-based company provides deathcare products and services in Canada and the United States. Its shares have plunged 37% in 2022 as of close on September 14. The stock is down 30% from the previous year.
In Q2 2022, this company delivered net revenue growth of 5.4% to $75.9 million. Meanwhile, net revenues increased 11% in the first six months of fiscal 2022 to $159 million. However, adjusted net earnings fell 24% from the first quarter of fiscal 2021 to $6.62 million this year. Park Lawn experienced a earnings dip, as death rates normalized following higher numbers than average during the COVID-19 pandemic.
Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given equity. Shares of this dividend stock currently possess an RSI of 26, which puts Park Lawn in technically oversold territory. It offers a quarterly dividend of $0.114 per share, which represents a modest 1.7% yield.
One more cheap dividend stock to buy today
AirBoss of America ( TSX:BOS ) is the third discounted dividend stock I’d look to snatch up at the midway point in September. This Newmarket-based company develops, manufactures, and markets rubber-based products for automotive, heavy commercial, construction and infrastructure, oil and gas, and defence industries in North America and around the world. Its shares have plummeted 76% so far in 2022.
Investors got to see AirBoss’s second-quarter fiscal 2022 earnings on August 4. Net sales rose to $255 million in the first six months of 2022 — up from $225 million in the prior year. Meanwhile, its adjusted profit was halved in the year-over-year period. This dividend stock last had an RSI of 23, putting AirBoss in oversold levels. It offers a quarterly dividend of $0.10 per share. That represents a 3.9% yield.
The post 3 Undervalued Dividend Stocks to Buy in This Volatile Market appeared first on The Motley Fool Canada .
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
2022