The recent market sell-off may well continue to impact investors over the course of the next few months. The stock markets are impacted by a number of uncertainties, including the second wave of coronavirus, an upcoming presidential election south of the border, and high unemployment rates.
However, this also provides you with an opportunity to buy quality TSX stocks at a lower valuation. Here we look at three such companies that you can buy and hold for the long-term.
Restaurant Brands International
The first stock on the list is Restaurant Brands International (TSX: QSR)(NYSE: QSR), the parent company of quick-service restaurant chains such as Tim Hortons, Burger King, and Popeyes Louisiana Kitchen.
Restaurant Brands was one of the worst-performing TSX stocks amid the pandemic. QSR stock fell from $90 at the start of 2020 to a multi-year low of $36.5 in March 2020 before recovering a part of these losses to currently trade at $70.6.
There is a good chance that QSR stock might decline in the near-term if lockdown restrictions are reimposed. In fact, Tim Hortons experienced a same-store sales decline of 25% in the first six months of 2020. However, this was offset by outperformance in other core banners.
The company recently included plant-based options such as the Impossible Whopper of Burger King, while the robust sales of Popeyes’ chicken sandwich continue to drive top-line growth. QSR has a strong balance sheet and with a dividend yield of 3.9%, it remains one of the top ‘buy the dip’ stocks on the TSX.
A telecom heavyweight
One of the major trends in the tech space is the upcoming transition to 5G and Canada’s largest telco Rogers Communications (TSX: RCI.B)(NYSE: RCI) is well poised to lead this segment in the upcoming decade.
Rogers Communications stock gained close to 12% in a single trading session last week after it reported Q3 results that showcased its leadership position in 5G. In its earnings call, Rogers confirmed that it has deployed 5G networks in 130 Canadian cities and towns. Comparatively, in June 2020, Telus disclosed it aims to reach 26 markets by the end of 2020.
We can see Rogers’ 5G deployment is already way ahead of its competitors’ year-end target. This can in fact be game-changing for Rogers as it can attract a significant number of customers by providing a robust 5G platform.
Further, the telecom space is fairly recession-proof allowing the company to maintain its dividend payout that indicates currently a forward yield of 3.6%.
A healthcare REIT
Another recession-proof sector is the healthcare one. NorthWest Healthcare is a real estate investment trust that has a diversified portfolio of assets in seven countries. The REIT owns and operates close to 190 healthcare properties that cover 15.3 million square feet. It has an occupancy rate of 97.4% and a weighted lease expiry of 14.6 years allowing the REIT to generate regular cash flows across business cycles.
Further, 75% of the REITs rent is indexed to inflation and 80% of customers are government-backed making it a top stock to own amid the uncertainty. NorthWest has a forward yield of 7%, making it an attractive buy for income investors.
