2 High-Quality Value Stocks to Buy This Month

Finding that right mix of investments can take time. Fortunately, there are some superb value stocks that can provide growth and handsome income.

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Finding that perfect mix for your portfolio takes time and a lot of patience. Fortunately, the market gives us plenty of options to consider. Additionally, there are times when some high-quality value stocks are just too tempting to pass on.

Here are two such stocks to consider for your well-diversified portfolio.

A good long-term value stock with potential

Some of the best investments are those with which we engage regularly or provide a necessary service that we take for granted. Leon’s Furniture (TSX:LNF) doesn’t exactly fit that description, but it is a company that many continue to pass by daily.

Prospective investors may not realize this, but furniture is a big-ticket item that often escapes the scrutiny that larger but still necessary purchases come with. There are also fewer larger players on the market to offer competition to drive down prices.

What does this mean for Leon’s as an investment? The company has been on a tear, surging over 45% in the past two years. Despite those gains, the company still holds massive potential for long-term investors. Leon’s also trades at an attractive P/E of just 9.72 and offers an attractive dividend with a yield of 2.58%.

Turning to results, in the most recent quarter, Leon’s reported a record-breaking revenue of $63.8 million. In terms of profit, the company posted earnings of $0.81 per diluted share. By way of comparison, in the same period last year, the company posted earnings of $0.60 per diluted share.

How about a quick snack?

Restaurant Brands International (TSX:QSR)(NYSE:QSR) is another great option to consider. Over the past year, the stock has dipped 10%, despite boasting incredible long-term potential.

Restaurant Brands is the name behind the Burger King, Popeyes, and Tim Hortons brands. Apart from the high-quality value stocks appeal, there are a few reasons why investors should consider Restaurant Brands.

First, let’s talk growth. Late last year, Restaurant Brands announced a fourth brand to add to its portfolio: Firehouse Subs. The $1 billion deal represents nearly 1,200 locations primarily across the U.S. but also in Canada. If the company follows the same winning formula it applied to its other brands, it’s not hard to see Firehouse expanding to new markets.

Second, we have defensive appeal. Unlike many other dining-related stocks, Restaurant Brands was able to weather the pandemic-induced storm and emerge better. The company put a focus on offering delivery and revamping its mobile-rewards offerings to attract new customers.

Finally, we have Restaurant Brands’s dividend. The quarterly yield works out to a very attractive 3.63%, despite the dip in the stock price. This fact alone makes the stock a great addition to any list of value stocks.

Final thoughts

No stock is without risk, even the high-quality value stocks noted above. That being said, both Restaurant Brands and Leon’s are mature offerings within unique segments of the market. In other words, a position in either would do well as part of a larger, well-diversified portfolio.

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 Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends LEONS FURNITURE and Restaurant Brands International Inc.

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