The S&P/TSX Composite Index had a rough finish to the week on Friday, April 3. Uncertainty still abounds in the market right now, but there were some positives to glean from the weekend. Governments in Europe, Australia, and the United States have stated that they see signs of the COVID-19 outbreak stabilizing. Denmark’s Prime Minister said that a gradual reopening of society may begin within days.
Today I want to look at one dividend stock that sent off buy signals late last week. Should you dip into this equity in April? Let’s dive in and find out.
Ag Growth International (TSX:AFN) is a manufacturer and distributor that operates in the agricultural sector. Its shares have dropped 59% month-over-month as of close on April 3. The company released its fourth quarter and full-year 2019 results on March 25.
Trade sales rose to $999 million over $934 million in the prior year. However, unfavourable market conditions in North America led to a decline in its adjusted profit and adjusted EBITDA from 2018. Ag Growth is classified as an essential service, which is good news in this broad shutdown. The stock last had an RSI of 22, which puts it well into technically oversold territory.
Ag Growth last announced a March 2020 dividend of $0.20 per share. This represents a monster 15.6% yield. Shares of Ag Growth look very undervalued right now, and it boasts very attractive income in a choppy market.
