ALERT: 3 Dividend Stocks That Are Flashing Buy Signals

Top dividend stocks like Canadian Utilities Limited (TSX:CU) have recently sent off attractive buy signals in a choppy market.

| More on:

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.

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 recommends North West. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Paper Canadian currency of various denominations
Dividend Stocks

Should You Buy the 3 Highest-Paying Dividend Stocks in Canada?

A few dividend stocks saw a sharp correction in November, increasing their yields. Are they a buy for high dividends?

Read more »

money while you sleep
Dividend Stocks

Buy These 2 High-Yield Dividend Stocks Today and Sleep Soundly for a Decade

These stocks pay attractive dividends that should continue to grow.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

$15,000 Windfall? This Dividend Stock Is the Perfect Buy for Monthly Passive Income

If you get a windfall, after debt investing should be your next top option to create even more passive income!

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

3 Canadian Dividend Stocks for Worry-Free Income

These Canadian stocks have consistently paid dividends, generating a worry-free passive income for investors.

Read more »

people relax on mountain ledge
Dividend Stocks

Invest $10,000 in This Dividend Stock for $4,791.70 in Annual Passive Income

A dividend stock doesn't have to be risky, or without growth. And in the case of this one, the growth…

Read more »

ETF chart stocks
Dividend Stocks

2 Top TSX ETFs to Buy and Hold in a TFSA Forever

Don't get crazy. Just think simple growth with these two ETFs that are perfect in any TFSA.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Use Your TFSA to Earn $900 Per Year in Tax-Free Income

This covered call ETF plus a TFSA could be your ticket to high tax-free passive income.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn a $15,000 TFSA Into $171,000

$15,000 may not seem like a lot, but over time that amount can balloon into serious cash.

Read more »