Cheap TSX stocks are plenty right now, and you can choose from a cash cow, top growth stock, and pure dividend play.
Winning cash cow
Fiera Capital (TSX:FSZ) is ideal for price-conscious, yield-thirsty investors. This financial stock has been a winning investment in 2024 (+34.18% year to date). At only $7.73 per share, the dividend yield is an over-the-top 11.27%. The business remains strong amid a challenging environment.
The $817.66 million independent asset management firm operates in North America, Europe, and selected Asian markets. Fiera provides customized multi-asset solutions across public and private market asset classes. The customer base consists of institutional and financial intermediaries as well as private wealth clients.
In the first half of 2024, assets under management (AUM) declined 3.2% to $158.9 million from a year ago. Total revenues and net earnings rose 5% and 57.4% year over year to $332.9 million and $12.5 million, respectively. However, in the second quarter (Q2) of 2024, net earnings dropped 36% to 4.9 million compared to Q2 2023.
Jean-Guy Desjardins, Fiera’s chairman and global chief executive officer, expects the regional distribution strategy to deliver positive organic growth for private markets. He also noted the robust pipeline for the rest of 2024.
Top growth stock
Several energy stocks made it to the 2023 TSX30 List, the flagship program for Canada’s top growth stocks. Baytex Energy (TSX:BTE) ranked 12th, owing to a 526% three-year return. The mid-cap stock is up 11.17% year to date and trades at $4.82 per share. Market analysts’ 12-month average and high price targets are $6 (+24.5%) and $8 (+66%). BTE also pays a modest 1.87% dividend.
The $3.88 billion crude oil and natural gas producer operates in the Western Canadian Sedimentary Basin and the Eagle Ford in the United States. In Q2 2024, total sales (petroleum and natural gas) climbed 15.1% year over year to $1.13 billion.
Also, during the quarter, net income and free cash flow (FCF) reached $103.9 million and $180.7 million compared to the $14 million net loss and -$88 million FCF in Q2 2023.
Management commits to allocating 50% of FCF to direct shareholder returns through share buybacks and quarterly dividends. The other 50% will strengthen the balance sheet. Baytex’s 2024 development plan is underway, and the production forecast (152,000 to 154,000 barrels of oil equivalent per day) could generate $700 million of FCF this year.
Monthly dividends
NorthWest Healthcare Properties (TSX:NWH.UN) is a low-priced dividend play in the real estate sector. This real estate investment trust (REIT) owns and operates essential healthcare properties like hospitals, clinics, and medical office buildings. Its newest tenants are in the life sciences, research, and education sectors.
The $1.23 billion REIT has 210 properties and caters primarily to healthcare operators in eight countries. Demand for this asset class or property type is ever-increasing due to the aging population and rising urban migration. NorthWest Properties enjoys a 96.5% occupancy rate, with a weighted average lease expiry of 13 years.
At the current share price of $4.98 per share, the dividend offer is 7.23%. Unlike most dividend stocks, NorthWest’s payout frequency is monthly, not quarterly. Your money would grow faster if you reinvest the dividends 12 times a year.
Price-friendly
Fiera Capital, Baytex Energy, and NorthWest Healthcare Properties are price-friendly stocks that can fatten, not drain, your wallets.
