Investors continue to want in on the market rebound. But it’s been tricky lately. While some industries are on the way up, other industries are on the way down. But investors have to remember: stay in for the long-term. That means you want to find stocks that you’ll be happy you bought not just a year from now, but a decade from now. So you want to find stocks with solid fundamentals, and a strong future outlook.
Right now, there are several strong companies with fundamentals to drool over. Many have already delivered sky-high returns, but still have room for growth. Let’s take a look.
Enbridge Inc. (TSX:ENB)(NYSE:ENB) shares are up just about 20% in the last year, but still have plenty of room to grow. The oil and gas glut, trade war, and pandemic put a halt to the production of oil and gas, and thus a stoppage to most shipping. Then there was the issue of its pipelines and whether these growth projects will go through. So since about 2015 shares in Enbridge were trending downwards.
But today it’s a different situation. The company has projects currently set to come online this year and in 2022. It also has billions in other growth projects underway. Even if it didn’t, its cash flow is supported by decades of long-term contracts. The company’s pipelines are the answer to the oil and gas glut, so it isn’t likely Enbridge stock will decline during the energy rebound. In fact, there is a huge growth opportunity.
The company’s price-to-sales (P/S) ratio sits at a cheap 2.2, and price-to-book (P/B) ratio at 1.8! That makes this stock super cheap. And if shares go back to all-time highs, a $10,000 investment would be worth $12,391! Plus the company has one of the highest dividend yields out there at 7.17%.
The e-commerce industry boomed in the last year, but there’s been a correction as many fear the future doesn’t look as bright. However, this industry is set to outpace brick-and-mortar stores in the next decade, perhaps sooner because of the pandemic. So a company that deals with e-commerce is a solid opportunity. That includes light industrial property REIT WPT Industrial REIT (TSX:WIR.UN).
The company owns 108 properties across North America where e-commerce companies can store and ship products. There’s little cost, little upkeep, and tons of growth opportunity. The company has been on fire, up 81% since the crash back to pre-pandemic levels. Yet it still has an incredibly cheap P/B ratio of 1.1, and a comparable 7.1 P/S ratio.
Sales are expected to only increase in this industry, so this is a great time to buy some shares before the e-commerce rebound. A $10,000 investment today could soon be worth $10,921 once the company reaches all-time highs that aren’t far off. Plus you can lock in the 5.02% dividend yield.
Another stock perfect to take advantage of a pullback is within the health care industry. NorthWest Healthcare Properties REIT (TSX:NWH.UN) is an ideal choice. You get a diversified portfolio of health care properties located around the world. The pandemic and lower interest rates saw revenue soar. The company now boasts an average lease agreement of 14.5 years! All this while growing shares at an incredible pace.
Shares are up 47% in the last year, and 37% in the last five years, but analysts predict it has much further to go. While it’s already near all-time highs, analysts estimates put its value near $18 per share. That would turn a $10,000 investment into $13,846. Its P/S ratio is a solid 5.2, and its P/B ratio an incredibly cheap 1.4. Meanwhile, it boasts a 6.07% dividend yield at writing.
Each of these dividend stocks could almost be classified as value stocks. Yet each have already given investors stellar returns since the crash. Investors who buy today can lock in solid dividend yields, supported by long-term performance. It doesn’t get much better than that.