Editor’s Note: A previous version of this article stated that Canada’s debt was at a total of $272 trillion. This has been updated to reflect that there is $272 trillion in global debt.
Canadians are desperate for cash right now. In fact, all of Canada is desperate. Our debt how now reached levels surpassing every other major country in the world. Between January and September, global debt tacked on another $15 trillion, bringing the global total to $272 trillion.
This means there could be another crash any time, and it’s looking more and more likely. COVID-19 continues to sweep the country, with numbers reaching all-time highs in almost every province. Some are thinking about lockdowns, if not already under lockdown protocol already. Such a backwards step could mean another crash as we saw in March, or worse.
So now more than ever, Canadians with money to invest should be looking for value. Value stocks are those that usually mean blue-chip companies that are well undervalue. Blue-chip companies are those that are household names of the industry. In this case, I would recommend looking into Brookfield Property Partners LP (TSX:BPY.UN)(NASDAQ:BPY), Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Manulife (TSX:MFC)(NYSE:MFC).
Brookfield Property is a real estate investment trust that owns real estate around the world, with a total of about $88 billion in assets. The company has a diverse portfolio, ranging from office space to storage, hospitality to student housing. This diversity means revenue remains strong and stable, with plenty of areas to fall back on.
Revenue has come down in the last few quarters, which is what has led to a slump in share price. However, this is why you’ll want to pick up a stock like Brookfield now for a deal, with shares about 9.5% below pre-crash levels. As the markets rebound, this stock will soar.
Especially with a backer like Brookfield Asset Management behind it. You really can’t go wrong with a stock like this, especially with a dividend yield of 8.07% as of writing! And with earnings around the corner with likely some good news, you could see a boost very soon.
TD Bank has been hit hard during this pandemic, yet it has the best chance of surging out of this downturn. That’s because in the last few years its diversified its portfolio to highly lucrative areas. These include in the United States, where it’s now one of the top 10 banks, and in wealth and commercial management.
So while revenue is down, this was expected and prepared for before the pandemic. TD Bank was back at pre-crash levels within a year during the 2008 recession, so should be one of the first out of this one as well. Meanwhile, shares still trade at 6.5% below pre-crash levels.
However, it has a compound annual growth rate (CAGR) of 10.3% in the last decade! This is the perfect buy and hold stock, with a 4.7% dividend yield while you wait for the rebound.
Finally, Manulife is another stock that’s seen a sharp drop in revenue during the last few months. It also trades at about 14% below pre-crash levels. And if any of these companies are a steal of a deal, it has to be Manulife. The company provides financial advice, insurance and wealth and asset management services in Asia, Canada, the United States and around the world. But it’s the Asian market that should have investors interested.
This is a market that others similar companies are still trying to get into, but Manulife is already there. It’s a diversified company that has plenty of spaces to fall back on and climb out of this economic downturn relatively unscathed. Look at the last decade in CAGR — the company has a strong 7%. It also has a dividend yield of 5.21%. So you get another steal of a deal, with a solid dividend!
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 Amy Legate-Wolfe owns shares of TORONTO-DOMINION BANK. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and Brookfield Property Partners LP.