2 Top Value Stocks That Are Screaming Buys Right Now

Here’s why investors looking for top value stocks may want to consider Manulife (TSX:MFC)(NYSE:MFC) and Dream Industrial REIT (TSX:DIR.UN).

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The rotation toward value stocks and away from hyper-growth options is underway. Indeed, right now is a very interesting time to be an investor. That’s partly because we could see a period of time where growth outperforms value. Such a scenario hasn’t played out for more than a decade.

Among the companies I think provide the best value right now are Manulife (TSX:MFC)(NYSE:MFC) and Dream Industrial REIT (TSX:DIR.UN). Here’s why investors may want to give these stocks a look.

Top value stocks: Manulife

In the world of insurance, Manulife is certainly a behemoth. This Canada-based insurance company has significant operations domestically. However, this company is also growing its presence internationally in a big way.

Specifically, Manulife’s presence in high-growth Asian markets has made this insurance player a top pick of mine for some time. From a growth perspective, there’s a lot to like about how Manulife is positioned.

That said, on a relative value basis, Manulife is cheap — very cheap. Compared to other peers in the financials sector, including Canada’s largest banks, Manulife trades at a rather steep discount. Right now, investors can pick up shares of Manulife stock for only 7.5-times earnings. Try finding that anywhere on the market.

Additionally, this company has a rather juicy dividend yield of 5% at the time of writing. What’s not to like?

Dream Industrial REIT

Another company with a dirt-cheap valuation and an attractive dividend yield is Dream Industrial REIT. Indeed, this stock has been a top value pick of mine for some time. With fundamental metrics such as those this company has, it’s easy to see why.

Dream Industrial’s 4.3% dividend yield is made even more sweet by the company’s price-to-earnings multiple of only 6.2 times. This company’s business model, based on high-quality industrial real estate, provides cash flow stability that’s simply very hard to find right now. Accordingly, long-term investors may look at this company’s valuation and scratch their heads.

Bottom line

Both Manulife and Dream Industrial tick a number of boxes I look at. When thinking long term, companies like these with real, growing earnings are enticing. Factor in a rock-bottom valuation and otherwise attractive business models with the potential for growth, and that’s the trifecta most investors are looking for.

Thus, for those with a truly long-term investing time horizon, Manulife and Dream Industrial REIT are great picks. These companies are atop my watchlist right now. Over the coming decade, I think these two stocks have the ability to outperform.

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.

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