2 Undervalued Stocks to Scoop Up Today

These two undervalued Canadian stocks could be ideal picks for value-seeking investors today.

| More on:

Image source: Getty Images.

At writing, the S&P/TSX Composite Index is at its new all-time high, up by almost 23% year to date. The Canadian benchmark index has set new records several times throughout 2021. As such, many Canadian stocks are in overvalued territory. Value-seeking investors might not prefer making many moves on stocks trading for high share prices today.

The TSX still boasts a few undervalued stocks trading for attractive valuations. It is a matter of looking at the right places if you want to find stocks that could provide you with significant long-term upside. It is crucial to be able to find undervalued stocks during market environments like this.

Knowing how to find and invest in undervalued stocks can help you ensure that you are not paying too much for assets during a soaring bull market. You also do not want to invest in low-quality companies just because the companies look like they are trading for cheaper valuations.

Today, I will discuss two high-quality undervalued stocks that you could consider adding to your portfolio today if you are a value-seeking investor.

Manulife Financial

Manulife Financial (TSX:MFC)(NYSE:MFC) stock could be an ideal asset to consider if you are looking for high-quality stocks trading for a cheap price. The $48.55 billion market capitalization Canadian financial company operates in an industry that has been around for decades, and it is not going anywhere.

The company’s expanding operations in the Asian market could provide it with the boost it needs for a stellar long-term performance. The anticipation of rising interest rates in the coming months could also boost its performance on the stock market. At writing, the Canadian Dividend Aristocrat is trading for $25 per share, and it boasts a juicy 4.48% dividend yield.


Cogeco (TSX:CGO) stock is another asset that you could consider adding to your portfolio if you are looking for high-quality and undervalued Canadian stocks. Cogeco is a $1.21 billion market capitalization Canadian company that provides internet, video, and telephone services. The telecom company is nowhere near some of the giants in the industry but boasts geographically diversified operations.

The communications sector has become increasingly important over the years, making it a defensive sector to park your funds. The overall strength of the industry also makes telecom excellent options to consider for long-term wealth growth. At writing, Cocego stock is trading for $84 per share, and it boasts a 2.60% dividend yield.

Foolish takeaway

As the Canadian stock market enters new all-time highs towards the end of the year, it is vital to ensure that you make investment decisions that do not entail too much capital risk.

I am not saying that you should not invest in high-growth stocks. It is also necessary to consider adding safer assets that could provide you with significant upside for your portfolio as the publicly listed companies appreciate to more reasonable valuations. Manulife Financial stock and Cocego stock could be ideal assets to consider for this purpose.

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 has no position in any of the stocks mentioned.

More on Dividend Stocks

Dividend Stocks

2 of the Best Dividend Stocks to Buy Before They Start to Recover

These dividend stocks offer superior deals for those seeking long-term passive income, but these prices certainly won't last forever.

Read more »

Dividend Stocks

Algonquin Insiders Are Loading Up on AQN Stock – Should You Follow?

Algonquin Power and Utilities (TSX:AQN) insiders poured millions into AQN stock last week. Share valuation multiples seem compelling.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA: 2 Stocks To Earn Passive Income Even in a Recession

Investors are coping with 2023 recession fears differently. Some are investing in stocks that can create long-term passive income.

Read more »

Cogs turning against each other
Dividend Stocks

3 Stocks You Can Confidently Own in an Upside-Down Market

Although many stocks have lost major value this year, here are three high-quality companies you can confidently own in this…

Read more »

Increasing yield
Dividend Stocks

2 Ultra-High-Yield Dividend Stocks on Sale Today

Besides their ultra-high yields, here are more factors that make these two of the best Canadian dividend stocks worth buying…

Read more »

money cash dividends
Dividend Stocks

These Canadian Stocks Actually Pay You to Own Them

While the stock market continues to face significant headwinds, consider these Canadian stocks that will pay you to own them.

Read more »

The sun sets behind a high voltage telecom tower.
Dividend Stocks

3 Top Utility Stocks to Buy Right Now

Are you looking for utility stocks to add to your portfolio? Here are three top picks!

Read more »

ETF chart stocks
Dividend Stocks

My Favourite Investing Ideas on the TSX Today

Investors can bet on TSX energy and bank stocks using these two ETFs.

Read more »