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Dividend investors have an opportunity to buy some of Canada’s best dividend stocks at undervalued prices. Jumping in when a stock is out of favour takes some courage and patience. Cheap dividend-growth stocks sometimes get even cheaper before they recover, but the rewards can be meaningful through the higher dividend yield and the potential long-term capital gains when the stock rebounds.
TD Bank
TD (TSX:TD) trades near $79.50 at the time of writing compared to $107 two years ago. The stock isn’t too far off the 12-month low of around $76 that it hit in late October last year.
Declines from the peak of the post-crash rally are largely due to the impact of rising interest rates in Canada and the United States. TD has large retail banking operations in both markets, and investors are concerned that the Bank of Canada and the U.S. Federal Reserve will keep rates too high for too long as they battle to…
