The market continues to slump at the end of what was a dismal week and, to a larger extent, month. Yes, in case you’re wondering, volatility is back and here to stay for a while. Fortunately, that volatility brings with it some excellent stocks to consider buying now at a discount.
Half-full or half-empty?
Investors often associate market volatility as a really bad thing, when it doesn’t really need to be seen that way. It really is a question of whether the glass is half-empty or half-full. If anything, a drop in the market presents an opportunity to buy into or buy more of some great stocks.
So, which stocks should you consider buying?
Diversification is key
Let’s start with one of Canada’s big telecoms. Rogers Communications (TSX:RCI.B)(NYSE:RCI) boasts a growing network of subscribers across its traditional subscription segments. Rogers also operates a massive media segment that encompasses dozens of radio and TV stations.
In short, the company is a defensive gem that should be a top candidate to consider buying now.
Looking back over the week, Rogers stock has dropped near 5%. Given the solid business and juicy dividend on offer (more on that in a moment), there really is no reason to not see this recent pullback as an opportunity to buy.
Keep in mind that unlike some of its peers that continue to provide annual upticks to its dividend, Rogers continues to focus on growth initiatives and paying down debt. That’s not to say the dividend isn’t respectable — it currently provides a yield of 2.78%.
If your focus is on growth, then let’s take a moment to talk about Shopify (TSX:SHOP)(NYSE:SHOP). The e-commerce behemoth has shed over 65% of its share price so far in 2022. That drop effectively erases most of the gains made over the course of the pandemic, which is an important point.
That’s not to say Shopify can’t resume its incredible growth spurt, because it will. The problem is that between the end of the pandemic boost to e-commerce, inflationary fears, and now interest rate hikes, there could still be more pain for Shopify.
In short, if you’re already invested, buying more now will reduce your average cost. If you haven’t invested in Shopify just yet, this is a good (but perhaps not the best, at least yet) time to buy.
Yes, investors should see Shopify as one of the stocks to consider buying now, but only as part of a larger, well-diversified portfolio
Canada’s big banks are always good investments. The recent market pullback represents an excellent opportunity to buy in at a discount. Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is a great option to consider right now.
CIBC is neither the largest nor most well-known of Canada’s big banks. What it does offer, however, is solid growth and a superb dividend.
That growth is centered on expanding into the U.S. market, which, in turn, feeds CIBC’s tasty dividend. Keep in mind that this is in addition to the bank’s core domestic segment in Canada, which continues to generate solid earnings for CIBC.
Turning to the dividend, CIBC offers a juicy 4.56% yield, making it one of the best-paying income stocks among its big bank peers. If that isn’t enough, the bank remains committed to providing annual bumps to that dividend.
So, what then sets CIBC apart from its peers? The bank has dipped nearly 9% in the past month, making it one of the stocks to consider buying now.
The stocks to consider buying now are ready. Are you?
No stock is without risk, especially during times of volatility. What sets the stocks above apart from the rest is that they continue to provide solid earnings, income, and growth potential, despite the recent market pullback.
In my opinion, one of more of the stocks should be part of any well-diversified portfolio.