3 Top Value-Added Stocks to Buy Right Now

Considering the whole “package” an investment offers and not just the return potential can help investors develop relatively stronger portfolios.

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What does a stock bring to your portfolio other than the return potential? That’s an important question to ask if you want to take a comprehensive view of your investments and look beyond the financial aspect. It can be conservative and easily understood factors like stability and consistency, as well as responsible investing considerations like the ESG value of your portfolio.

A 5G leader

Telus (TSX:T)(NYSE:TU) is an impressive growth and dividend stock, at least from the Canadian telecom sector perspective. It offers a slightly different combination of capital appreciation potential compared to BCE. It has more growth (10-year CAGR of 12.1%) and a relatively smaller yield (4.4%). It offers more than this decent combination of return potential; it also offers a chance to invest in the 5G potential of Canada.

The nationwide penetration of 5G is still years away, but with the right approach, Telus’ return potential may become far more potent than the current one. This 5G stock also offers stability as one of the few leaders in the sector and a telecom company with a healthy consumer base. As a Dividend Aristocrat, the chances of your payouts/dividend-based income from this company keeping pace with inflation are quite high.

A waste management company

While not exactly a green stock, Waste Connection (TSX:WCN)(NYSE:WCN) is a solid waste management company which offers the added value of padding the ESG profile of your portfolio. It has a solid presence in the U.S. and Canada, and many of the company’s services overlap with the sustainability goals of the businesses they serve.

That includes sustainable waste management practices associated with commercial activities (including food waste). The company is meeting its own ESG goals at a decent pace. The stock frequently outperforms the market and is one of the most consistent growth stocks currently trading on the TSX, making this overvalued company a smart buy.

A healthcare-focused REIT

If you want to add value to your portfolio by investing in a specific real estate asset class that might have different demand patterns compared to the mainstream real estate market segments, NorthWest Health Properties REIT (TSX:NWH.UN) is one stock you should consider. The REIT is a slow and steady grower with a five-year CAGR of 13.4%.

A more compelling reason to buy this REIT would be the more typical reason to buy any REIT, i.e., its dividends. It offers a juicy 5.8% yield and is currently available at a discounted valuation. The REIT is a strong buy thanks to its portfolio diversification and since it owns healthcare properties in multiple countries spanning three continents.

Foolish takeaway

A good stock is more than just the sum of some attractive “metrics” or impressive historical performance. It’s a good business with a stable operating model and promising prospects. Taking a relatively comprehensive view of your investments and looking into value-added factors/elements of your investments can help you build a strong and stable investment portfolio capable of lasting for decades with minimal ongoing adjustments.

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 NORTHWEST HEALTHCARE PPTYS REIT UNITS and TELUS CORPORATION.

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