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.
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.
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.
Like these top picks? Here are a few more to consider right now:
Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
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 Chris MacDonald has no position in any of the stocks mentioned.