Written by Amy Legate-Wolfe at The Motley Fool Canada
Canadian investors looking for value stocks need to think well beyond the current market performance. The TSX today remains down by about 8.55% year to date. So, it has many looking at stocks that aren’t doing well and thinking maybe they’ll pass.
Honestly, don’t! You may be missing out on an opportunity you’ll have to wait another decade to enjoy. That’s a decade of enormous growth from these value stocks. Here are the three I would pick up and hold forever right now.
First up is NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest stock offers value in a couple of ways. It’s a real estate investment trust (REIT) with properties around the world in every area of the healthcare sector. This allows for a diversified set of revenue coming in.
However, NorthWest stock is also one of the value stocks to buy for fundamentals. It continues to post record-setting revenue that it uses to make even more acquisitions. While its dividend yield hasn’t grown since coming on the market, it could in the near future.
Even so, right now, it’s a value stock trading at just 6.74 times earnings. Plus, it offers a substantial dividend yield of 6.83% as of writing.
The Big Six banks all offer value right now, but Bank of Montreal (TSX:BMO)(NYSE:BMO) might offer the most. First, it’s been growing, even during the pandemic, making acquisitions that have increased its growth throughout the United States. Meanwhile, it offers one of the highest dividend yields of the Big Six banks.
Provisions for loan losses have helped BMO stock stay on top, and that doesn’t look like it’s about to slow down. That’s likely why it was able to increase its dividend by an incredible 25% at the beginning of 2022.
Plus, BMO stock is one of the best value stocks to buy, trading at just 7.57 times earnings. So, lock in that 4.41% dividend yield while you can.
Finally, Nutrien (TSX:NTR)(NYSE:NTR) became a volatile stock earlier this year and is now one of the value stocks I’d consider. Nutrien stock is a stellar long-term hold for those who believe that we’ll continue needing to, you know, eat in the near future.
As one of the world’s largest crop nutrient producers, Nutrien stock has a secured future made more secure by its acquisitions and online operations. Yet after rising to all-time highs and then falling during the market correction, investors may not be as eager to buy.
Honestly, I would be. Nutrien stock is one of the value stocks trading at just 7.37 times earnings right now with a dividend yield of 2.05%. Plus, it’s not like shares are performing poorly, up 29% year to date. Still, it’s down 16% from all-time highs. Now is the time to buy.
If you’re looking for long-term holds, these are the top three value stocks I would consider right now. Each is in a secure industry that’s only set to continue growing in the years and decades to come. Add in a cheap share price and solid dividend, and you’ve got yourself a deal.
Before you consider Bank of Montreal, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in September 2022 ... and Bank of Montreal wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 9/14/22
Fool contributor Amy Legate-Wolfe has positions in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and Nutrien Ltd. The Motley Fool has a disclosure policy.