Market Pullback: 3 Cheap Dividend Stocks to Buy Today

Investors worried about a market pullback should look to discounted dividend stocks like Sleep Country Canada Inc. (TSX:ZZZ) today.

| More on:

The S&P/TSX Composite Index shot up 344 points to close out the week on February 25. North American markets roared back after being hit by major volatility on the morning of February 24, 2022. That happened to be the date Russia launched its large-scale invasion of Ukraine. Since then, NATO allies have brought down unprecedented sanctions in response. Investors need to prepare for another market pullback, as the conflict intensifies. Today, I want to zero in on three discounted dividend stocks to snatch up before we move into March.

This dividend stock offers mouth-watering value right now

Canaccord Genuity (TSX:CF) is a Toronto-based company that offers investment solutions and brokerage and investment banking services to a variety of clients. Shares of this dividend stock have dropped 16% in 2022 as of close on February 25. The stock is still up 9% in the year-over-year period.

The company released its third-quarter fiscal 2022 earnings on February 9. Revenues rose 3.3% year over year to $550 million. Meanwhile, revenue in the year-to-date period increased 18% to $1.5 billion. Adjusted net income was reported at $84.6 million, or $0.69 per diluted share — up 7.2% and 11.3%, respectively, from the previous year.

Shares of this dividend stock have been hit hard during this recent market pullback. It last had a very attractive price-to-earnings (P/E) ratio of 4.8. The stock possesses an RSI of 29 at the time of this writing. That puts Canaccord in technically oversold territory. It offers a quarterly dividend of $0.085 per share, which represents a 2.6% yield.

Don’t sleep on this discounted dividend stock at the end of February

Sleep Country Canada (TSX:ZZZ) is another Toronto-based company that is engaged in retailing mattress and bedding-related products. This dividend stock has plunged 19% so far this year. Its shares are also still up 9% year over year. I’d suggested that investors scoop up this dividend stock back in the summer of 2020.

Investors will get to see this company’s final batch of 2021 earnings on March 4. In Q3 2021, Sleep Country delivered revenue growth of 13% to $31.4 million. Meanwhile, adjusted net income climbed 19.5% year over year to $39.7 million. Moreover, adjusted diluted earnings per share jumped 18% to $1.07. Sleep Country has enjoyed success on the back of its e-commerce channel, which delivered sales growth of 17% in the third quarter.

This dividend stock last had a favourable P/E ratio of 12. Sleep Country last paid out a quarterly dividend of $0.195 per share. That represents a 2.6% yield.

One more stock to snatch up on the dip today

I’d suggested that investors should get in on top green energy stocks in late 2021. Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is a great dividend stock to snatch up in this space. It owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in North America, Chile, and Bermuda. Its shares are down marginally so far in 2022.

This company is set to unveil its fourth-quarter and full-year 2021 results on March 3. In Q3 2021, Algonquin delivered revenue growth of 40% to $528 million. Meanwhile, adjusted EBITDA climbed 27% to $252 million.

Shares of this dividend stock possess a favourable P/E ratio of 14. It offers a quarterly distribution of $0.171 per share, representing a solid 4.8% yield.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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.

More on Investing

Snowflake logo in snowflake office on wall_snowflake-1
Tech Stocks

Here’s Why Snowflake Stock Skyrocketed Today

Shares of the data company are up 32% for the day.

Read more »

man touching magnifying glass button on floating search bar internet google search engine
Tech Stocks

Why Alphabet Stock Was Sliding Today

The parent company of Google is facing heat from U.S. regulators.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »

woman looks out at horizon
Investing

Is Sun Life Financial Stock a Buy for its 4% Dividend Yield?

Let's dive into whether Sun Life Financial (TSX:SLF) stock is a buy for its dividend yield alone, or if this…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

1 Magnificent Energy Stock Down 17% to Buy and Hold Forever

Down over 17% from all-time highs, Headwater Exploration is a TSX energy stock that offers you a tasty dividend yield…

Read more »

Man data analyze
Investing

Want $1 Million in Retirement? 2 Simple Index Funds to Buy and Hold for Decades

Just invest in a S&P 500 index fund and do nothing.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, November 21

Escalating geopolitical tensions and U.S. economic data remain on investors’ radar today as the TSX continues to hover above the…

Read more »

think thought consider
Investing

Should You Buy Couche-Tard Stock Aggressively Before Nov. 25?

Here’s what could help Couche-Tard stock rebound after its upcoming earnings event.

Read more »