The Canadian fairness markets are upbeat this yr, with the S&P/TSX Composite Index rising 5.8%. Strong quarterly performances and an bettering macro setting with easing inflation have elevated buyers’ confidence, driving the fairness markets.

Regardless of strengthening broader fairness markets, the next three dividend shares nonetheless must take part within the rally for varied causes. They’re buying and selling at substantial reductions from their 52-week highs, and their valuations look low-cost, thus offering glorious shopping for alternatives.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) owns and operates 743 Pizza Pizza and Pizza 73 model eating places. It has adopted a extremely franchised enterprise mannequin, working all its eating places via franchisees. It collects royalty from its franchisees based mostly on gross sales. So, its financials are proof against the rising bills on this inflationary setting. In the meantime, the corporate’s royalty pool earnings might improve amid elevated menu costs on account of rising prices.

Additional, PZA focuses on launching new merchandise and leveraging its advertising and marketing initiatives and expertise to drive gross sales. From the start of this yr, it has added 45 new eating places to its royalty pool and eliminated 14 eating places that ended their operations. It’s setting up new eating places and initiatives to extend its conventional restaurant rely by 3-4% this yr. Additional, the corporate is continuous its renovation program, which might help its same-store gross sales progress.

Amid stable efficiency final yr, PZA raised its month-to-month dividend thrice. It at present pays a month-to-month dividend of $0.0775/share, with a ahead yield of 6.73%. Additionally, it trades at an NTM (subsequent 12-month) price-to-earnings a number of of 13.8, making it a horny purchase.

Telus

Second on my listing is Telus (TSX:T), which has misplaced round 25% of its inventory worth in comparison with its 52-week excessive. Larger rates of interest and an unfavourable announcement from the CTRC (Canadian Radio-television and Telecommunications Fee) have dragged the corporate’s inventory value down.

In November, CTRC mandated massive telcos to share their fibre-to-the-home (FTTH) networks with smaller gamers, so smaller gamers can proceed to supply their companies, thus growing competitors and reducing costs for purchasers. The announcement would disincentivize firms like Telus, which have invested aggressively in increasing their broadband companies. The selloff has dragged its valuation right down to enticing ranges, with its NTM price-to-sales at present at 1.5.

Regardless of the near-term weak spot, the long-term progress prospects of Telus look stable amid rising demand for telecommunication companies on account of digitization and distant working and studying. Additionally, the selloff has elevated its dividend yield to six.94%.

NorthWest Healthcare Properties REIT

One other low-cost dividend inventory you should purchase proper now could be NorthWest Healthcare Properties REIT (TSX:NWH.UN), which owns and operates 219 income-producing healthcare properties with a complete leasable space of 17.7 million sq. toes. Larger debt ranges and elevated curiosity bills weighed on its financials, thus dragging its inventory value down.

Nevertheless, the healthcare actual property funding belief strengthened its steadiness sheet by divesting $450 million of property final yr, together with non-core property. It has additionally amended, prolonged, and refinanced its debt amenities and lowered its month-to-month dividend to enhance its monetary place.

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In the meantime, NWH continues to get pleasure from larger occupancy and assortment charges, which stood at 97% and 99% within the December-ending quarter. Its extremely defensive healthcare portfolio, long-term contracts, and inflation-indeed lease agreements might stabilize its financials. The corporate at present pays a month-to-month dividend of $0.03/share, with its ahead yield at present at 7.68%.