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The Coronavirus Market Crash: Where to Invest $5,000 Right Now

David Jagielski
Canadian Dollars

The stock market’s been taking a hit as a result of the coronavirus pandemic. For investors, it can be a great opportunity to take advantage of some cheap stocks that are trading at levels not seen, in some cases, for years. Below are three stocks that investors can invest $5,000 in today and enjoy big paydays later.

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) finished last week at just over $53 a share. You have to go back to 2016 for the last time the stock traded at these levels. There are some near-term risks, including that customers may default on mortgages and loans. However, the problems relating to the coronavirus are short term in nature and shouldn’t impact the bank’s long-term trajectory. The stock came out of the financial crisis a decade ago stronger than ever. Investors who bought — even before the stock reached the bottom — could have doubled their money if they hung on until last year when the stock was over $70 per share.

It’s a long-term scenario but investors shouldn’t neglect that the financial crisis would’ve made bank stocks especially undesirable, and yet they still recovered. The coronavirus is a much broader issue that’s not specific to financial stocks at all. And that’s why TD, which is now yielding close to 6% per year, could be a steal of a deal.

BlackBerry (TSX:BB)(NYSE:BB) has fallen 60% in just the past 12 months. The stock’s been on a mammoth collapse, even though its business is showing signs of progress. In its most recent quarterly results, the company’s revenue was up 18% from the prior year, largely due to Cylance sales. But it’s a significant long-term opportunity for the company. Cylance’s AI capabilities can add even stronger cybersecurity solutions for BlackBerry customers in the future.

And as more employees work from home during the coronavirus pandemic, companies will be more vulnerable to potential hacks and breaches. That makes cybersecurity more important than ever, especially in the short term.

The company is releasing its year-end results on Mar. 31, and a strong performance could help the stock get a much-needed boost. Shares of BlackBerry are currently trading below their book value. It could be a great time to scoop up the stock at a price that hasn’t been this low in nearly two decades.

RioCan Real Estate Investment Trust (TSX:REI.UN) plummeted more than 40% in just the past three months, as the coronavirus has raised fears surrounding real estate. With businesses closing down and consumers facing new challenges in paying their mortgages, RioCan and other real estate investment trusts are facing elevated risks. However, with a lot at stake, the government isn’t going to let the economy collapse. It may seem like doom and gloom for real estate, but it’s far too early to be sounding alarm bells just yet.

The company’s monthly $0.12 dividend payments are now yielding 9.4% annually. It’s a much higher payout than normal for investors. The last time shares of RioCan were this low were during the financial crisis more than a decade ago. Currently, RioCan is trading well below its book value. At a price-to-book multiple of around 0.6, it’s another cheap value buy investors can add to their portfolios today.

The post The Coronavirus Market Crash: Where to Invest $5,000 Right Now appeared first on The Motley Fool Canada.

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Fool contributor David Jagielski owns shares of BlackBerry.  The Motley Fool recommends BlackBerry and BlackBerry.

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