Happy Valentine’s Day, Foolish readers! The stock market may not be the first thing that springs to mind when you think of romance, but today we’re going to try to get in the spirit. If you look hard enough, you can find some parallels between love life and the stock market. Or maybe that’s just me…
Sometimes you give up on a stock right away. I’m talking in the first week. Certain stocks can enrich your life with capital growth and steady income that lasts for years. Other times, a stock or a sector promises the world. Things are going great. Just when you think you’re finally happy and ready to settle down, you get burned. I’m looking at you, cannabis sector.
Today, I want to look at two stocks that have turned me back into a hopeless romantic. Together, these equities offer a great combination of future growth potential, income, and stability.
Scotiabank (TSX:BNS)(NYSE:BNS) is often labelled Canada’s “international bank” because of its large global footprint, especially in Latin America. Long distance relationships can be tough, but in this instance, I’m willing to bet that things are going to last. Shares of Scotiabank have climbed 3.3% over the past month.
The bank has revealed that it will release its first-quarter 2020 results before markets open on February 25. In 2019, Scotiabank posted adjusted net income of $9.41 billion compared to $9.14 billion in the prior year. Management anticipates that it will draw most of its strength from domestic operations in 2020, but it does expect another strong showing from its global banking segment.
Investors should be pleased with Scotia’s nearly flawless balance sheet. The stock last possessed a price-to-earnings ratio of 11 and a favourable price-to-book value of 1.4. Scotia last paid out a quarterly dividend of $0.9 per share, which represents a solid 4.8% yield.
They say only time can heal a broken heart, but Jamieson Wellness (TSX:JWEL) is a company that has a supplement for just about everything else. This Toronto-based company develops, manufactures, distributes, sells, and markets natural health products in Canada and globally. Shares of Jamieson have climbed 51% year over year as of close on February 13. Back in the summer of 2019, I’d discussed why I was still very bullish on this company.
Investors can expect to see Jamieson’s fourth-quarter and full-year results for 2019 on February 20. In the third quarter, adjusted EBITDA rose 8.6% year over year to $19.4 million, and adjusted net income climbed to $9.5 million over $8.9 million in Q3 2018. Jamieson benefitted from a 23.9% increase in international sales — led by robust growth in China.
Jamieson needs to make inroads, as its debt is currently not well covered by operating cash flow. The stock possesses a price-to-earnings ratio of 37 and a price-to-book value of 4.2, which is surprisingly favourable compared to industry peers. Its board last increased its quarterly dividend payout to $0.10 per share, representing a modest 1.4% yield.
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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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.