2 Top TSX Value Stocks That Are Looking Attractive Right Now

These two top Canadian value stocks are among my top picks for long-term investors looking for core portfolio holdings right now.

| More on:
Value for money

Image source: Getty Images

Value stocks have certainly underperformed their growth counterparts over the last decade. Over the last few years, this chasm has widened.

However, the gap between growth and value is starting to narrow, with many thinking that value stocks could outperform hyper-growth companies for some time to come. There’s a capital rotation underway, which is bullish for companies on the value end of the spectrum.

Those looking to find top value stocks may want to consider Dream Industrial REIT (TSX:DIR.UN) and Manulife (TSX:MFC)(NYSE:MFC). These two companies are on my radar, and I think are both looking lucrative right now. Here’s why.

Top value stocks: Dream Industrial REIT

Without a doubt, I would say that Dream Industrial REIT is a strong long-term investment prospect. There are multiple reasons for this. However, this REIT’s exposure to prime industrial real estate is the key driver. When investors think of industrial real estate, warehouses, and distribution centres are typically what’s thought of.

These facilities support the e-commerce boom, which has been an incredible growth driver in recent decades. Accordingly, the ever-rising demand for top-notch industrial properties remains a driver of Dream Industrial’s outlook.

This $3.68 billion REIT is the owner and operator of 326 industrial properties across Europe, Canada, and the United States. Net income and operating income have been consistently rising from 2018 to 2020. Due to the trust’s robust fundamentals relating to its industrial real estate portfolio, this REIT maintains secure cash flows each year. Currently, Dream Industrial uses these cash flows to pay out a dividend yield of 4.4%. That said, I see this yield as one that has the ability to increase over time.

Thus, Dream Industrial is a defensive income stock, currently trading at only 6.8 times earnings that investors may want to snap up at these levels.


One of the top value stocks I’ve been banging my drum on for some time is Manulife. And it’s not just because of this top Canadian insurer’s valuation multiple at under eight times earnings.

Manulife’s core business model remains strong, with the company’s health and life insurance businesses seeing strong growth. Primarily a North American insurer, Manulife has grown into China and other growth markets and is a stock that I think has tremendous upside, as the Chinese middle class grows.

The company’s recent financials speak to strength over the near, medium, and long term. Last week, the company released its full-year 2021 results, which saw profits surge 20% year over year. Additionally, the company announced that it would be hiking its quarterly dividend distribution to $0.33 per share. This has brought Manulife’s yield from around 4.5% to around 4.8% at the time of writing.

Over the long term, Manulife’s stable business model is one I think can outperform the market. Given how uncertain everything is right now, Manulife and Dream Industrial are two great picks for long-term investors to consider.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends DREAM INDUSTRIAL REIT.

More on Dividend Stocks

sale discount best price
Dividend Stocks

2 Remarkably Cheap TSX Stocks I’d Buy Right Now

Cheap and undervalued TSX stocks such as goeasy can offer investors the opportunity to generate outsized returns next year.

Read more »

TFSA and coins
Dividend Stocks

TFSA Investors: How to Make Passive Income in 2024

These two passive-income stocks offer growth and dividends but should also remain stable going into 2024 and beyond.

Read more »

Dividend Stocks

Should You Buy This High-Growth Utility Stock Today?

While from a typically "boring" sector, this TSX utility stock offers unusually high growth potential if you are interested in…

Read more »

Baubles On Snow With Snowy Christmas Tree
Dividend Stocks

3 TSX Stocks to Buy in December 2023

Here's why quality TSX stocks such as Jamieson Wellness should be part of your shopping list in December 2023.

Read more »

analyze data
Dividend Stocks

Adjusting Your Portfolio for the New Normal: Higher Interest Rates in Canada

The 5% interest rate is here to stay until the second half of 2024. It's time to adjust your portfolio…

Read more »

Gas pipelines
Dividend Stocks

Is Enbridge Stock a Buy for its Big Dividend?

Enbridge is down more than 10% over the past year. Should you buy the dip?

Read more »

stock research, analyze data
Dividend Stocks

2 Top Stocks to Buy With $500 Today

Investing in the stock market does not always require massive capital. You can begin with just $500 allocated to stocks…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Are These the Best Canadian Dividend Stocks for a High-Rate Environment?

Are you looking for some of the best Canadian dividend stocks to buy? Here are two top picks for decades…

Read more »