The latest spell of market volatility has put a ton of great high-quality companies on sale for some lucky investors.
The list of stocks trading on the exchanges at bargain prices right now is long and deep, but here are three of my favourites that I’ll be looking to add to my Tax-Free Savings Account (TFSA) hopefully sooner and not later.
Shares in energy producer Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) in a bit of the doldrums for more than a couple of years now, but doesn’t mean there still isn’t a lot to like about this company as a long-term buy-and-hold investment.
Paying an annual dividend yield under 2% isn’t going to get a lot of people excited, particularly if you’re a retiree in search of income, but the stock’s current price-to-book value of just 0.71 times suggests there is real value here if you’re willing to be patient and wait it out.
The other reason that I’m willing to be patient with this company is that an integrated energy company that operates both upstream as well as downstream assets, I don’t need to be monitoring the markets on a daily or sometimes even hourly basis to figure out which way the price of oil is headed next.
Another company that I have a lot of patience for is Gluskin Sheff + Associates Inc (TSX:GS).
Gluskin Sheff is one of Canada’s pre-eminent (and oldest) asset managers with a history that dates back all the way to the 1980s.
While there are other companies in the Canadian market with much longer operating histories, that’s a pretty solid track record of performance as far as the asset management industry is concerned.
Unfortunately, the Gluskin Sheff’s share price hasn’t fared quite so well as of late, but that likely has more to do with the underlying performance of the global markets than it does the skills and abilities of Gluskin Sheff’s team of accomplished portfolio managers.
Look for this stock to make a rebound in 2019 as investors return to see the merits of active portfolio management.
It doesn’t hurt either that shareholders will get the benefit of the firm’s dividend yield, currently paying investors 9.44% annually.
Meanwhile, if you find yourself in the market (literally) looking for companies whose businesses will be able to weather the storm of an economic downturn, you might find that Molson Coors Canada Inc. (TSX:TPX.B)(NYSE:TAP) shares will whet your proverbial investment appetite.
Beer and alcoholic brewers are notoriously recession-proof, and in this respect, Molson Coors is no exception.
Following its acquisition of Miller Coors Molson is now one of the world’s largest beer brewers by volume, and has recently added to its portfolio of recreational brands with the announcement of a joint venture in partnership with cannabis producer Hexo Corp (TSX:HEXO) late last year.
The two are teaming up to launch a line of non-alcoholic cannabis-infused beverages.
In exchange for the deal, Hexo agreed to issue Molson Coors 11.5 million warrants, each of which gives Molson the right to purchase one common share of Hexo at $6 each for a period of three years.
Given that Hexo stock currently trades only slightly above that threshold as of this writing, there’s at least some reason to believe the company’s Hexo stake could pay dividend for investors down the road in addition to Molson’s reported yield of 2.58%
I’ll be continuing to follow the markets closely in the coming days and weeks to see if I can’t find an attractive entry point in any – if not all three – of these companies.
