Written by Amy Legate-Wolfe at The Motley Fool Canada
The TSX today still trades down 10% compared to 52-week highs, which still puts us securely in a bearishness. Because of this, financiers are unsteady. Any stocks that even tip of disaster results in a drop in share cost once again and once again, putting even strong dividend stocks in oversold area.
Yet that leaves an excellent chance for financiers looking for long-lasting dividend stocks. That is why today, I’m going to take a look at these dividend stocks that use a considerable chance for when they recuperate.
TELUS
First up we have TELUS (TSX:T), with shares that are down about 19% in the in 2015 though practically 2% year to date. The concern here has actually been lower first-quarter earnings combined with the continuous drama that is a merger in between Rogers and Shaw.
Yet if you believe this need to press you out of the telecom sector, particularly in regards to Telus stock, reconsider. While there were lower earnings, experts still advise a minimum of sticking it out if you have the stock and seeing these business for when assessments strike worth area.
For now, Telus stock sell oversold area at 27.16 on the Relative Strength Index (RSI). It uses a dividend yield at 5.67% since composing, and a prospective benefit of 24% to strike previous 52-week highs. So, when this stock ultimately rallies, I wouldn’t wait long to select it up.
Nutrien
Another leading option amongst oversold dividend stocks is Nutrien (TSX:NTR), and, truthfully, it’s for comparable factors. Nutrien stock is down 37% in the in 2015 and 25% year to date. Much of this drop originates from once again lower-than-expected incomes. However, Nutrien stock likewise alerted that the potash market might not be as excellent as they as soon as prepared for.
Investors were then fast to shed the stock, leaving a chance for the client financier. Among dividend stocks it’s still a strong gamer, providing a yield at 3.95%. That’s far above the typical variety we’ve seen in the last year. What’s more, it’s one of the largest crop nutrient companies in the world, and, with less arable land, it certainly has room to grow.
Nutrien stock now trades at 30.56 RSI as of writing and 4.16 times earnings. So, it’s well within value territory for those seeking a deal. If it reaches 52-week highs, that would give investors potential upside of 78% as of writing!
Pet Valu Holdings
Finally, we have Pet Valu Holdings (TSX:PET), which, again, offers a great opportunity for those willing to wait just a little bit. Pets are a part of life, and the company will remain, at the very least, stable while Canadians continue to pay for the essentials.
However, earnings recently fell short of estimates, with a lower profit coming in similarly to other companies. This could soon change however, as Pet Valu stock looks to open up 50 new stores across Canada.
Meanwhile, it’s one of the dividend stocks offering a yield at 1.3% as of writing, with shares down 3% in the last year but 21% year to date after earnings. As for value, it trades at a 26.68 RSI, and a potential upside of 39% to reach 52-week highs. So, again, I would hop on a dividend stock like this while it remains in oversold territory. It won’t be for long.
The post 3 Oversold Dividend Stocks That Could Make You Rich When They Bounce Bank appeared first on The Motley Fool Canada.
Before you consider Nutrien, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in May 2023… and Nutrien wasn’t on the list.
The online investing service they have actually run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 23 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns since 5/24/23
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Fool factor Amy Legate-Wolfe has no position in any of the stocks discussed. The Motley Fool advises Nutrien, Pet Valu, and TELUS. The Motley Fool has a disclosure policy.
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