3 Dividend Stocks at 52-Week Lows to Buy Now!

These dividend stocks may be at 52-week lows, but this could provide investors with a strong opportunity to make some killer cash.

Amy Legate-Wolfe ❯

@amylegatewolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest.

Published October 26, 2023 4:00 pm EDT

There are many dividend stocks out there trading at or near 52-week lows. However, there are far fewer that I would actually consider buying these days. After all, the market can be a scary place. But when it comes to the dividend stocks in this article, these are the most solid long-term holds you’d be crazy not to consider.

Royal Bank stock

Royal Bank of Canada (TSX:RY) recently hit 52-week lows, as the market continued to shrink. Even as the Bank of Canada stated it would maintain the interest rate at 5%, it wasn’t lowered. And this, unfortunately, can mean that Royal Bank stock will continue to see fewer loans come in.

Yet that, frankly, doesn’t matter. Royal Bank stock is the largest of the Big Six banks and has plenty of provisions for loan losses. That’s even after the pandemic. Furthermore, the bank is funded by its large wealth and commercial management business. This part of its business is highly lucrative, providing it with plenty of cushion in these trying times.

So, even with shares at 52-week lows, and even if they fall further, it’s a great time to consider Royal Bank stock — especially as it trades at 10.7 times earnings and holds a dividend yield of 4.95%.

Cargojet

Another company that soared upwards when times were great, only to now trade at 52-week lows, is Cargojet (TSX:CJT). Cargojet stock is another of the dividend stocks to consider thanks to its cheap share price and strong future outlook.

Cargojet stock went through massive expansion during the pandemic and even before that. Growth and consumption allowed it to make partnerships with some of the largest ecommerce shippers in the world — especially since it’s Canada’s only overnight cargo airline. Yet now, with consumption falling, shares have fallen, too.

Even still, this period will eventually come to an end and create an opportunity for long-term holders. Therefore, certainly consider Cargojet stock with shares trading at 10.2 times earnings and a dividend yield of 1.42%.

Aecon

Finally, shares of Aecon Group (TSX:ARE) dropped dramatically after the company announced it would be putting an end to four of its legacy projects. The goal was to focus on making more cash and positive earnings from new projects. The thing is, investors weren’t so sure that they liked this risky move.

Even so, the company still has $6.2 billion in backlog projects that are underway. These are long-term contracts for stable investments in infrastructure. And that’s the key here. The company is necessary to build up the infrastructure that fell behind during the pandemic.

So, with shares up just 2% in the last year, trading at 7.96 times earnings, and with a dividend yield of 7.03% as of writing, it’s a great time to consider the stock.

Bottom line

Stocks trading at 52-week lows can be scary. But these three dividend stocks have a history of growth, even in dire circumstances. So, I would certainly consider adding them to your watchlist as the market continues to fluctuate today.