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There are plenty of cheap TSX stocks available right now, and you can choose between a cash cow, a high-growth stock, and a pure dividend option.
Successful cash cow
Trade fair capital (TSX:FSZ) is ideal for price-conscious, yield-hungry investors. This financial stock has been a profitable investment in 2024 (+34.18% year-to-date). At just $7.73 per share, the dividend yield is an outstanding 11.27%. The company remains strong in a challenging environment.
The independent asset management firm with assets of $817.66 million operates in North America, Europe and select Asian markets. Fiera offers tailored multi-asset solutions across all public and private market asset classes. Its client base consists of institutional and financial intermediaries as well as private wealth clients.
In the first half of 2024, assets under management (AUM) decreased 3.2% year-on-year to $158.9 million. Total revenues and net income increased 5% and 57.4% year-on-year, to $332.9 million and $12.5 million, respectively. However, in the second quarter (Q2) of 2024, net income decreased 36% to $4.9 million compared to the second quarter of 2023.
Jean-Guy Desjardins, Fiera’s Chairman and Global CEO, expects the regional sales strategy to deliver positive organic growth for private markets. He also pointed to the robust pipeline for the remainder of 2024.
Top growth stock
Several energy stocks have made it onto the 2023 TSX30 list, the flagship program of Canada’s fastest-growing stocks. Baytex Energy (TSX:BTE) ranked 12th, thanks to a three-year return of 526%. The mid-cap stock is up 11.17% year-to-date and is trading at $4.82 per share. Market analysts’ 12-month average and high price targets are $6 (+24.5%) and $8 (+66%), respectively. 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 U.S. In the second quarter of 2024, total sales (crude oil and natural gas) increased 15.1% year-on-year to $1.13 billion.
Additionally, net income and free cash flow (FCF) reached $103.9 million and $180.7 million, respectively, during the quarter, compared to a net loss of $14 million and FCF of -$88 million in the second quarter of 2023.
Management is committed to investing 50% of FCF directly to shareholders in the form of 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 in FCF this year.
Monthly dividends
NorthWest Healthcare Features (TSX:NWH.UN) is a low-cost dividend real estate investment trust (REIT). This real estate investment trust (REIT) owns and operates key healthcare properties such as hospitals, clinics and medical offices. Its newest tenants are in the life sciences, research and education sectors.
The $1.23 billion REIT has 210 properties and primarily targets healthcare providers in eight countries. Demand for this asset class or property type is constantly increasing due to the aging population and increasing urban migration. NorthWest Properties enjoys an occupancy rate of 96.5% with a weighted average lease term of 13 years.
At the current share price of $4.98 per share, the dividend offering is 7.23%. Unlike most dividend stocks, NorthWest pays out monthly, not quarterly. Your money would grow faster if you reinvested the dividends 12 times a year.
Price-friendly
Fiera Capital, Baytex Energy and NorthWest Healthcare Properties are inexpensive stocks that will fill your wallet but not empty it.
