Wealthy Living

5 Best Undervalued Canadian Dividend Stocks Investors Should Check this 2022

Dividend investing is a great way to ensure that you create passive wealth during both bull and bear markets. Dividend stocks are companies that pay out a part of their profits to their shareholders.

Dividend investing is favored by many investors because it gives them the benefit of passive income plus long-term capital gains as the value of the stock rises over time.

Investors who have a low-risk appetite generally purchase dividend stocks.

Here are 5 Canadian dividend stocks that are undervalued, and will likely deliver long-term stock price appreciation as well.

Undervalued Canadian Dividend Stock #1: Royal Bank of Canada (RY)

Royal Bank of Canada is one of the leading banks in Canada. After losing close to 10% of its value, the Royal Bank stock is now highly undervalued and is close to its 52-week low.

This could be a great buying opportunity when you consider that banks usually do well when interest rates move up.

Also, Royal Bank’s second-quarter results were not that bad. Though there was a 3.4% reduction in the revenues, net income was up by 6% YOY to $4.3 Billion.

Undervalued Canadian Dividend Stock #2: BCE Inc. (BCE)

BCE is a telecommunication provider that primarily operates through three segments: Bell Wireless, Bell Wireline, and Bell Media.

Just like most stocks due to the ongoing broader market correction the BCE stock has ended up losing around 10% of its value in the second quarter.

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