I hope everyone is enjoying their Labour Day long weekend. I took a little vacation by having a mini-golf outing and enjoyed delicious Korean food with friends. Now, back to a cheap dividend stock with a decent dividend yield.
Investment-grade retailer Canadian Tire (TSX:CTC.A) isn’t doing well from high inflation and rising interest rates because both lead to lower consumer spending and is a drag on results.
The dividend stock has been in a downward trend since peaking in May 2021 after a tremendous run from about 140% from the pandemic market crash bottom.
2021 results are hard to beat. Canadian Tire had a 45% jump in adjusted earnings per share (EPS), which is a far cry from a normal growth rate. This is why its year-to-date net income dropped 11% versus the same period last year. Normalized diluted EPS saw a more palatable drop of 2% to $6.16.
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