Bitcoin and other cryptocurrencies have been making waves again since last year. The leading asset in the cryptocurrency space led a powerful charge to reach new all-time highs of over US$63,000 earlier this year. As of writing, the value of a single Bitcoin is worth US$38,140, and the figure keeps violently fluctuating in this region.
Cryptocurrencies started becoming popular as a possible alternative to traditional currencies. Gradually, many people began considering them as a better alternative to gold as a store of value. Unfortunately, it does not seem like it can fulfill either of those two roles.
Cryptocurrency transactions are yet to become accepted in the mainstream, and there is still no control over how its value increases and decreases, making it too volatile for use as a currency or as a safe-haven asset.
Every investment asset comes with its set of risks. However, the risks associated with the stock markets involve underlying businesses going under, losing investors’ trust, or bad fundamentals. Bitcoin and other cryptocurrencies can even fall off a cliff if an influential person says anything negative about them.
If you are looking for safer investments, I can suggest two excellent stocks to consider adding to your portfolio.
Manulife Financial (TSX:MFC)(NYSE:MFC) has been around since 1887, conducting business for centuries. The $48.55 billion market capitalization company is a powerhouse in the insurance sector. It could offer you much more peace of mind as an investment that you can rely on than Bitcoin.
The Toronto-based financial services and insurance provider is up by 11.46% on a year-to-date basis, despite a decline of around 9% in the last few months. It is trading for $25 per share at writing and boasts a juicy 4.48% dividend yield at its current valuation.
The company released its Q1 2021 earnings report on May 5 and posted impressive figures. Its earnings increased by 67% from the same period last year. Its annualized premium equivalent sales rose 14% to $1.8 billion. As the Asia-based markets present increasingly lucrative opportunities, Manulife Financial is well positioned to capitalize on the demand and offer substantial upside potential to its investors.
Absolute Software (TSX:ABST)(NASDAQ:ABST) is an excellent stock to consider if you are looking for a growth stock. Trading for $17.06 per share, Absolute offers a meagre 1.88% dividend yield. However, the real opportunity that the stock presents is through its massive upside potential.
The stock is trading for a cheap valuation compared to peers and offers more robust growth. Its annual recurring revenues have accelerated in four consecutive quarters, growing its adjusted EBITDA at stellar speeds. The company’s management projects double-digit growth in its top line this year, as its margins continue growing at a healthy pace.
Increased spending on cybersecurity, a large addressable market, and a host of new products mean that Absolute Software is well positioned to provide investors with exceptional growth in the coming years.
Cryptocurrencies are an unusually frothy affair. After climbing to new all-time highs, Bitcoin and its peers continue to trade at far lower valuations. If you are looking for safer returns on your investments, Bitcoin is something you ought to avoid.
Manulife Financial could be a viable alternative if you seek an income-generating asset that offers reliable dividend payouts. Absolute Software could be a far better alternative if you seek an asset that can grow your wealth at a good pace but does not come with the uncertainty of cryptocurrencies.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Absolute Software Corporation.