This summer has ushered in dangerous volatility for global markets, and investors have taken notice. Safe havens like gold and Bitcoin have surged over the past several months. Central banks in the developed world reserved course on monetary tightening in late 2018, and now it seems that most are ready to commit to lower rates as we look ahead to 2020.
Investors should not panic. There are still attractive long-term stocks that are worth picking up before the New Year. Today, I want to look at three equities that are well positioned to reward investors for the future.
Boralex
Boralex (TSX: BLX) is an electric utility company dedicated to the development, building, and operation of renewable energy power facilities. Shares of Boralex have climbed 19.6% in 2019 as of close on August 7. Over the past 10 years, the stock has averaged annual returns of 9.5%. To add to its appeal, it also offers a solid dividend payout.
The past decade has seen governments in the developed world push hard for a renewable energy future. Allied Market Research recently projected that the global renewable energy market would hit $1.51 trillion by 2025 compared to the $928 billion market registered in 2017. This represents a CAGR of 6.1% from 2018 to 2025.
Boralex last paid out a quarterly dividend of $0.165 per share. This represents a 3.3% yield. The stock offers income and increased stability whereas the next equities we will cover today carry more risk.
Zymeworks
Zymeworks (TSX: ZYME)(NYSE:ZYME) is one of the more exciting biotech stocks available on the TSX. Shares have soared 59% in 2019 as of close on August 7. The stock is up 30% over the past three months. When this year started, I’d explained why Zymeworks was one of my favourite stocks to own going forward.
The case for Zymeworks has only strengthened in 2019. Its lead product candidate, ZW25, was recently pushed forward into phase two stage clinical trials. Meanwhile, its other product candidate, ZW49, won approval for phase one clinical trials. Both have enormous potential if brought to market in the fast-growing biopharmaceutical sector. Research and development costs have shot up at Zymeworks due to this increase in clinical trial activity.
The company has built a deep pipeline of partners over the years. Investors will be betting on its product candidates into the next decade, and the results have been promising so far. Zymeworks has huge growth potential in the long term.
Jamieson Wellness
Jamieson Wellness (TSX: JWEL) launched its initial public offering back in July 2017. Shares have dropped 4% in 2019 as of close on August 7. However, the stock had climbed 14% over the past three months.
The nutrition and supplements market has posted solid global growth, fuelled in large part by aging demographics in the developed world. From its initial launch, Jamieson leadership said that its growth would be powered by this trend. International growth has also become a huge focus. Jamieson’s foray into China and Eastern Europe has yielded good success and international sales in the second quarter were up 30%.
Jamieson stock had a price-to-earnings ratio of 29 as of close on August 7. The company is geared up for gradual growth in this sector, but it boasts a strong footprint in a steadily growing sector. Jamieson last paid out a quarterly dividend of $0.09 per share, which represents a modest 1.7% yield.
