Time flies so fast that the half of the year is over. Stocks investors are counting the gains from the winning trades in the previous quarters. Some are recalling the missed buying opportunities. If you have some losses to recover, you can invest in value stocks and never incur losses again.
National Bank (TSX:NA) and TC Energy (TSX:TRP)(NYSE:TRP) are the kinds of stocks you can purchase to own and then forget. Assuming you buy today, you’ll get to enjoy the entire summer without the pressure of monitoring the investments.
Hulking bank in a niche market
It’s been a solid run so far this year for National Bank of Canada. Shares of the 16-decade-old bank closed the first half of 2019 at $62.21 and are up 11% year to date. The bank is not among the top five banks, but retirees and TFSA investors don’t consider National Bank an alternative option. The stock is a core holding.
National Bank is also the partner of small- and medium-sized businesses and enterprises. The $20.85 billion bank is the premier provider of financial services in their space. Even large corporations and foreign customers benefit from specialized financial services.
The bank’s profit margin stands at 31.67%, and, if maintained, National Bank will again generate more than $2 billion in earnings this year. By next year, 6.6% growth is anticipated. The real proof of the bank’s profitability can be seen from the dividend track record, and the current yield is a decent 4%.
National Bank of Canada will increase the bottom line through international expansion. The bank has a 9.5% stake in AfrAsia Bank in Mauritius, a 10.5% ownership in XacBank in Mongolia, and a 90% majority stake in ABA Bank in Cambodia. These are among the bank’s key and tactical acquisitions.
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Spawn wealth in an enduring business
Another value stock that has attracted passive-income seekers and would-be retirees is TC Energy. The energy infrastructure company made a spectacular turnaround in 2016 following more than $1 billion losses the previous year. Investors were awed and continue to be endeared to the stock.
TC Energy is one of the top-performing energy stocks as of June 28, 2019. The stock is up 33.17% year to date, and analysts are forecasting a potential upside of 15.5%. Obviously, the strong bottom line is propelling the stock higher. Also, the company is a little more diversified compared to other energy firms.
If you’re invested in an enduring and continuing business concern like TC Energy, you can hold on to stock even until retirement. The current dividend yield of 4.4% will allow you to earn a steady income in your TFSA for an unlimited period. You can fatten your balance some more by reinvesting the dividends.
National Bank of Canada and TC Energy are great “value” stocks. Both companies are demonstrating better-than-average earnings of late. The reputable bank is as stable as ever, while the energy stock has rebounded with super-improved fundamentals.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Christopher Liew has no position in any of the stocks mentioned.