The Canadian TSX dividend stocks we’ve identified have single-digit price-to-earnings ratios, suggesting that the names are also value plays
SmallCapPower | September 8, 2022: Dividend-paying stocks can be great long-term investments as they provide a steady income stream that pays investors to wait while the stock price rebounds following a market-wide slump. Today we have identified three TSX dividend stocks with super low price-to-earnings ratios, suggesting the names are great value plays as well.
*Share price data and other metrics as of September 7, 2022
Teck Resources Limited (TSX:TECK.B) – $43.11
Teck is a diversified miner with coal, copper, zinc, and oil sands operations in Canada, the United States, Chile, and Peru. Metallurgical coal is Teck’s primary commodity in terms of EBITDA contribution, closely followed by copper, with zinc and oil sands contributing smaller amounts to earnings. Teck ranks as the world’s second-largest exporter of seaborne metallurgical coal and is a top-three zinc miner. It is building a major new copper mine in Chile at the majority-owned Quebrada Blanca 2, in partnership with Sumitomo, which will increase Teck’s attributable copper production by around 80%. Along with a number of additional copper growth options, Teck’s strategy is to rebalance its portfolio to low carbon metals such as copper. Its stock is currently yielding 1.2%.
- Market Cap: $22.8B
- Year-To-Date Return: 18%
- P/E Ratio: 4.3
Manulife Financial Corporation (TSX:MFC) – $22.50
Manulife Financial provides life insurance and wealth management products and services to individuals and group customers in Canada, the United States, and Asia. Manulife is one of Canada’s Big Three life insurance companies (the other two are Sun Life and Great West Life). As of December 31, 2021, Manulife reported assets under management or administration of about C$1.4 trillion. Its stock is currently yielding 5.9%.
- Market Cap: $42.9B
- Year-To-Date Return: – 3%
- P/E Ratio: 5.2
Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) – $44.91
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 67,000 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada and the Netherlands with approximately $18 billion of assets under management globally. Its stock is currently yielding 3.3%.
- Market Cap: $7.8B
- Year-To-Date Return: – 20%
- P/E Ratio: 6.2
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