Early investors of cryptocurrencies like Bitcoin have turned even small amounts of investments into riches. Now, new money in this industry turns to newer cryptocurrencies such as Dogecoin for the chance to increase wealth.
The first cryptocurrency only emerged about 13 years ago — a short time compared to the much longer history of the stock market. Moreover, it requires an entirely new approach to perform fundamental analysis for a cryptocurrency. It could involve analyzing use cases, the number of people using it, and the team behind the project (if there’s one). This type of analysis is also very new.
Needless to say, many cryptocurrencies fail — they either fall a lot without warning or disappear altogether. In other words, you need to guess when to buy. Furthermore, you don’t know which new cryptocurrencies like Dogecoin have staying power.
It could make sense to hold Dogecoin or other cryptocurrencies as a small percentage of a diversified investment portfolio for long-term investment. However, it’s probably best to invest primarily in proven assets like stocks and real estate for the majority of your portfolio.
If you like Dogecoin, tuck some away, then forget it and consider buying these Canadian stocks that have performed well lately and can continue to do well.
Savaria (TSX:SIS) is a global company that provides accessibility solutions for the physically challenged to increase their comfort, mobility, and independence. It operates in North America, Europe, Australia, and China with approximately 1,400 employees.
It designs, manufactures, distributes, and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, and elevators for home and commercial use.
Savaria also manufactures and markets a variety of pressure management products for the medical market, medical beds for the long-term care market, and medical equipment and solutions for the safe handling of patients. Additionally, Savaria converts and adapts vehicles to be wheelchair accessible.
The dividend stock has done well by delivering total returns that more than doubled the market returns in the past 12 months and five years. It offers a nice yield of 2.7% and will likely continue outperforming in the long run.
Total Return Level data by YCharts. The five-year total returns comparison between Savaria stock and the Canadian stock market using TSX:XIU as a proxy.
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Another stock that you can count on for surer returns than cryptocurrencies is H&R REIT (TSX:HR.UN). The stock of the diversified real estate investment trust (REIT) was battered during the pandemic. It has already made a nice recovery, but only a partial one. Within two to three years, it can likely recover to the $20 range for upside of approximately 30%. Meanwhile, it provides a juicy yield of 4.5%.
H&R REIT’s monthly cash distribution is expected to be well covered by a 2021 funds from operations payout ratio of below 50%. At $15.18 per unit, the dividend stock trades at a discount of more than 30% from its recent net asset value.
Its recent rent collection across its office, retail, industrial, and residential portfolio was 94%. Naturally, its retail assets, which make up about 30% of its portfolio (based on fair value), continue to be a drag on the REIT, especially during the pandemic. Its other assets, particularly its industrial and residential assets, have been more resilient.
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 Kay Ng doesn't own any stocks mentioned. The Motley Fool recommends Savaria.