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3 Magnificent Stocks to Buy That Are Near 52-Week Lows

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Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

I’m not sure if you’ve noticed, but the stock market continues to be all over the place. We seem to be more focused than ever on earnings, and it’s led to some insane drops in share prices. As well as jumps, sure. But it’s the drops that should pique your interest.

This is why today I’m going to look at three magnificent stocks to consider on the TSX today. All three are near 52-week lows and offer one huge benefit: dividends. So, let’s get right to it.

NorthWest REIT

NorthWest Healthcare REIT (TSX:NWH.UN) doesn’t look all that fantastic right now. The company continues to trade near 52-week lows, with volatility abounding for this real estate investment trust (REIT). Yet there are some benefits to consider.

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It seems that NorthWest stock may have bottomed out, now trading near $4.40 per share after hitting $3.89 at its lowest point. Even so, it has a long road ahead back to profitability. Yet once it reaches that, the company could only be up from there from stable investments in healthcare properties.

So, with a dividend yield of 8.22%, NorthWest stock could be worth your while if you plan on holding it for years to come. In that time, the dividends may end up paying for your investment itself! It’s certainly a strong stock to consider.

Inovalis

Another strong REIT to consider is Inovalis REIT (TSX:INO.UN), especially with shares at just $1.25 as of writing. That’s already an improvement from 52-week lows of $0.69. It also means an insanely high dividend yield at 31.98%, which means there is likely to be a dividend cut in the future.

Even so, you might as well grab it while you can. The company could return to normal — especially when the current market conditions around the world improve. That’s because the REIT mainly focuses on REITs in European office properties.

While office properties have been hit, the company should certainly see an increase either in divestments or a return to normalcy. Frankly, I’m betting on the former. Even so, the company looks sound enough to have hit rock bottom and climbed up from here.

Automotive REIT

Perhaps my absolute favourite deal, however, is Automotive Properties REIT (TSX:APR.UN). APR stock was hit hard during the pandemic, and that was twofold. First off, restrictions meant one couldn’t go buy a card. What’s more, supply-chain issues really meant there were no cars to buy.

However, that has changed. The demand for cars exploded, and with prices slowly coming down and interest rates cut in the future, there is bound to be a huge increase in interest. Meanwhile, shares trade at just $10.60 as of writing, slightly up from the $9.71 at 52-week lows.

So, right now, you can pick up the stock while it’s down, trading at just 5.28 times earnings and offering a 7.56% dividend yield. In fact, of all the companies on this list, I’d have to say this one is by far my favourite.

The post 3 Magnificent Stocks to Buy That Are Near 52-Week Lows appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has positions in and recommends Automotive Properties Real Estate Investment Trust. The Motley Fool recommends Inovalis Real Estate Investment Trust and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

2024