As value-conscious investors, we are always on the lookout for high-quality stocks that are trading at discounts compared with their five-year averages, and the recent downturn in the market has created a plethora of opportunities. With this in mind, let’s take a look at three attractive options from the TSX 60 Index that you could buy right now.
1. Thomson Reuters Corp.
Thomson Reuters Corp. (TSX: TRI)(NYSE:TRI) is the world’s leading source of intelligent information for businesses and professionals.
At today’s levels, its stock trades at 26.3 times fiscal 2015’s estimated earnings per share of $2.03 and 23.2 times fiscal 2016’s estimated earnings per share of $2.31, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 42.6, but are slightly above its industry average multiple of 20.6.
In addition, Thomson Reuters pays a quarterly dividend of $0.335 per share, or $1.34 per share annually, giving its stock a 3.3% yield. It is also important to note that the company has increased its dividend for 22 consecutive years, making it one of the top dividend-growth plays in the market today.
2. George Weston Limited
George Weston Limited (TSX: WN) is the largest processor and distributor of food in Canada, and it is the company behind Loblaw Companies Limited and Weston Foods.
At current levels, its stock trades at 18.7 times fiscal 2015’s estimated earnings per share of $5.80 and 15.8 times fiscal 2016’s estimated earnings per share of $6.87, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 27.1 and its industry average multiple of 28.8.
Additionally, George Weston pays a quarterly dividend of $0.425 per share, or $1.70 per share annually, which gives its stock a 1.6% yield. Investors should also note that the company has increased its dividend for three consecutive years.
3. Canadian Pacific Railway Limited
Canadian Pacific Railway Limited (TSX: CP)(NYSE: CP) is one of the largest rail network operators in North America.
At today’s levels, its stock trades at 19.1 times fiscal 2015’s estimated earnings per share of $10.32 and 16.3 times fiscal 2016’s estimated earnings per share of $12.05, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 25.7 and its industry average multiple of 23.6.
In addition, Canadian Pacific pays a quarterly dividend of $0.35 per share, or $1.40 per share annually, giving its stock a 0.7% yield, and it has maintained this rate since 2012.
Could your portfolio use more value stocks?
Thomson Reuters, George Weston, and Canadian Pacific are three of the top value plays in the TSX 60 Index today. All Foolish investors should strongly consider initiating long-term positions in at least one of them.
