Given where valuations are in the market today, the search for great risk-adjusted returns is on.
For those looking to make long-term investments, here are three top picks to consider today.
WPT Industrial REIT
Industrial real estate remains the top long-term real estate sub-sector I’d invite investors to consider today. Other real estate classes like office and retail could see some decline coming out of this pandemic. However, industrial real estate (warehouses, distribution centres, etc.) are a piece of the fabric of the long-term economy. Indeed, the strength of the e-commerce revolution is built upon industrial real estate.
In this sector, WPT Industrial REIT (TSX:WIR.UN) remains one of my top picks. This REIT has an extremely high-quality asset base and deserves a higher valuation multiple in this environment, in my view. The trust’s 4.7% dividend yield is thus among the highest quality in the sector today.
Additionally, I think as we come out from this pandemic, investor demand for industrial real estate will surge. We’re still only in the early stages of a recovery that could spur a tremendous amount of economic activity. REITs like WPT will be the backbone of this recovery and will be more highly sought after than ever.
Algonquin Power
For those seeking a powerful combination of growth and income, Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) is a great stock to consider right now.
The company is among the best options in the Canadian utilities sector today. Yes, Algonquin offers a bond-like dividend yield to investors, similar to its peers. However, the company’s higher-growth renewable power segment is one that I think isn’t getting enough attention right now.
The world is shifting in a big way to renewable energy. Algonquin is a utilities company with the foresight to have made the key investments to get here years ago. I think the company’s positioning is ideal, given the tailwinds supporting renewables today.
Algonquin’s forecasted quarterly revenue is expected to be $571 million, or EPS of $0.21. Given the company’s extremely stable growth trajectory due to its core regulated utilities business, I think there’s the potential for a series of earnings beats on the horizon, given the growth potential with its current asset mix today.
Curaleaf
As far as Canada-listed cannabis companies go, Curaleaf Holdings (TSXV:CURA) remains my top pick.
That’s because this isn’t a Canadian cannabis company at all. Rather it’s a U.S. multi-state operator (and the largest in the U.S. at that). Curaleaf’s size and scale in the fast-growing U.S. market separates it from its Canadian peers. Indeed, for those looking to take advantage of the potential for U.S. federal legalization, Curaleaf is my top choice today.
In addition to this key catalyst, Curaleaf has a valuation multiple I consider to be much stronger than its Canadian peers.
For those seeking growth at a (more) reasonable price, Curaleaf is a great option in the cannabis space today.
