NWC:CC - ALERT: 3 Dividend Stocks That Are Flashing Buy Signals
2023-07-18 15:45:00 ET
The S&P/TSX Composite Index dipped 35 points on Monday, July 17. Some of the worst-performing sectors included telecom, energy, and battery metals. Today, I want to zero in on three TSX dividend stocks that have flashed buy signals over the past week. Let’s jump in.
This green energy dividend stock looks undervalued in the second half of July
Capital Power ( TSX:CPX ) is an Edmonton-based company that develops, acquires, owns, and operates renewable and thermal power-generation facilities in Canada and the United States. Shares of this dividend stock have dropped 7.7% month over month as of close on July 17. The stock has now dropped 11% so far in 2023.
This company released its first-quarter (Q1) fiscal 2023 earnings on May 1. Investors can expect to see Capital Power’s Q2 fiscal 2023 earnings on August 2. In Q1 2023, Capital Power reported revenues and other income of $1.26 billion — up from $501 million in Q1 2022. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. The company posted adjusted EBITDA of $401 million in Q1 2023 compared to $348 million in the previous year.
Shares of this dividend stock currently possess a favourable price-to-earnings (P/E) ratio of 18 . The Relative Strength Index (RSI) measures the price momentum of a given security. This stock slipped into technically oversold territory last week and currently possesses an RSI of 35. That puts the stock just outside of oversold levels. Meanwhile, Capital Power offers a quarterly distribution of $0.58 per share. That represents a tasty 6% yield.
Here’s a dividend stock that offers nice value and solid income right now
North West Company ( TSX:NWC ) is a Winnipeg-based company that is engaged in the retail of food and everyday products and services to rural communities and Durban neighbourhood markets in northern Canada, rural Alaska, and in other parts of the world. Its shares have dropped 2% over the past month. North West stock has plunged 10% in the year-to-date period.
Investors got to see North West’s first-quarter (Q1) fiscal 2023 earnings on June 7. North West reported sales growth of 7.5% to $593 million on the back of sales gains in Canada Operations as well as the positive impact of foreign exchange on the translation of International Operations sales. Meanwhile, adjusted net earnings and adjusted EBITDA fell slightly compared to the previous year, which saw a big earnings spike due to COVID-19-related factors.
North West stock last had an attractive P/E ratio of 13. Shares of North West spent most of June and half of July in oversold territory. It is not too late to buy the dip. Moreover, this dividend stock offers a quarterly distribution of $0.38 per share, which represents a solid 4.7% yield.
The lone Dividend King on the TSX looks cheap today
Canadian Utilities ( TSX:CU ) is the third and final cheap dividend stock I’d look to snatch up after the midway point in July 2023. This dividend stock has dropped 3% over the past month. Its shares have plunged 8.1% so far in 2023.
This company is set to unveil its next batch of earnings later this month. In Q1 2023, Canadian Utilities saw adjusted earnings dip marginally to $217 million. Meanwhile, it reported expenditures of $304 million as it seeks to expand its rate base. The stock has achieved 51 straight years of dividend growth, which makes Canadian Utilities the only Dividend King on the TSX.
Shares of this dividend stock currently possess a favourable P/E ratio of 14. Meanwhile, it last had an RSI of 38. That puts this Dividend King just outside of oversold levels. It also offers a quarterly dividend of $0.449 per share, representing a strong 5.2% yield.
The post ALERT: 3 Dividend Stocks That Are Flashing Buy Signals appeared first on The Motley Fool Canada .
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends North West. The Motley Fool has a disclosure policy .
2023