1 Oversold Dividend Stock To Buy Today

(MENAFN- Baystreet.ca) 1 Oversold Dividend Stock to Buy Today

Cogeco Communications (TSX:CCA) is a Montreal-based communications corporation that operates in two segments; Canadian Broadband Services and American Broadband Services. Shares of this telecom dividend stock have plunged 19% in 2023 as of close on March 23. The stock is now down 38% in the year-over-year period.

Investors can expect to see this company's second quarter fiscal 2023 earnings on the morning of Friday, April 14. Cogeco posted its first quarter fiscal 2023 results on January 12. It delivered revenue growth of 6.1% to $762 million. The company posted Canadian telecom revenue growth of 4.8% and American telecom revenue growth of 7.4% compared to the prior year. Meanwhile, Cogeco posted adjusted EBITDA of $367 million – up 5.1% compared to the first quarter of fiscal 2022. Profit jumped 3.2% to $120 million.

Cogeco unveiled its revised fiscal 2023 guidelines in its first quarter report. The company is projecting revenue growth between 0.5% to 2.0% in fiscal 2023. It forecasts the same 0.5-2.0% growth in adjusted EBITDA. Moreover, free cash flow excluding network expansion projects is forecast to post a decline of 5% to 5% growth over the full year.

Shares of this dividend stock currently possess a very favourable price-to-earnings ratio of 6.7. It last had a Relative Strength Index (RSI) of 37, putting it just outside of technically oversold territory. Cogeco offers a quarterly dividend of $0.776 per share. That represents a solid 4.9% yield.



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