Advertisement

Got $5,000? Buy and Hold These 3 Value Stocks for Years

Value for money
Image source: Getty Images

Written by Ambrose O'Callaghan at The Motley Fool Canada

The S&P/TSX Composite Index was down 228 points in early afternoon trading on Wednesday, September 6. Some of the worst-performing sectors included health care, battery metals, base metals, and industrials. Today, I want to explore how Canadians might want to spend $5,000 in cash in this current market. Below are three of my favourite value stocks to target as we wind down the last days of the summer of 2023. Let’s dive in.

This insurance stock offers fantastic value for investors in early September

Manulife Financial (TSX:MFC) is a Toronto-based company that provides financial products and services in Asia, Canada, the United States, and around the world. Shares of this value stock have dropped 3.7% month over month at the time of this writing. The stock is still up 2.9% so far in 2023. Investors can see more of its recent and past performances with the interactive price chart below.

ADVERTISEMENT

This company released its second quarter (Q2) fiscal 2023 earnings on August 9. Manulife reported core earnings growth of 4% on a constant exchange rate basis to $1.6 billion. Meanwhile, core earnings per share (EPS) increased 6% to $0.83.

Shares of this value stock currently possess a very favourable price-to-earnings (P/E) ratio of 8.7. Meanwhile, Manulife last paid out a quarterly dividend of $0.365 per share. That represents a very strong 5.8% yield. Manulife has also delivered nine straight years of dividend growth, which makes it a Dividend Aristocrat.

Here’s a value stock in the energy space worth snatching up today

Canadian Natural Resources (TSX:CNQ) is a Calgary-based company that is engaged in the exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids (NGLs). This value stock has jumped 8.6% over the past months. Its shares have climbed 24% in the year-to-date period.

In Q2 2023, Canadian Natural Resources reported adjusted earnings of $1.04 billion, or $0.87 per diluted share — down from $1.28 billion, or $1.04 per share, in the previous year. Canadian investors should be happy to target this value stock as oil prices have been on the uptick in recent weeks.

This value stock last had an attractive P/E ratio of 13. That puts this energy stock in great value territory relative to its industry peers. Meanwhile, Canadian Natural Energy offers a quarterly distribution of $0.90 per share, which represents a solid 4% yield.

One more value stock in the telecom sector I’d target right now

Rogers Communications (TSX:RCI.B) is the third and final value stock I’d look to snatch up with the remainder of our $5,000 cash windfall. This company is based in Toronto and operates in the communications and media spaces. Its shares have plunged 14% so far in 2023. Meanwhile, the stock is down 1.5% year over year.

The company unveiled its Q2 2023 earnings on July 26. It delivered total service revenue growth of 32%. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a clearer picture of a company’s profitability. Rogers posted adjusted EBITDA growth of 38% in Q2 2023.

Shares of this value stock currently possess an attractive P/E ratio of 18. Moreover, it offers a quarterly dividend of $0.50 per share, representing a 3.6% yield.

The post Got $5,000? Buy and Hold These 3 Value Stocks for Years appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Canadian Natural Resources?

Before you consider Canadian Natural Resources, 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 August 2023... and Canadian Natural Resources 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 26 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 8/16/23

More reading

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Rogers Communications. The Motley Fool has a disclosure policy.

2023