2 Bargain Stocks You Can Buy Today and Hold Forever

These two bargain stocks offer excellent odds that you could quadruple your investment or more in the next decade and beyond.

Female hand holding piggy bank. Save money and financial investment

Image source: Getty Images

There are a lot of cheap stocks out there for Motley Fool investors to consider. But there’s a big difference between cheap and valuable. So today, I’m going to focus on the latter. These are the two best bargain stocks I would consider on the TSX today.

Brookfield Renewable

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) is a massive bargain in my opinion. Not only is it one of the bargain stocks I would consider holding forever, but I’d also consider it as a growth stock for the next year or so.

That’s because Brookfield is in the renewable energy sector that’s due for a huge boom in the next decade. Heck, in the next few years! The world is shifting to clean energy, yet investors are too nervous to get into a new sector due to the current market environment. Which is exactly why it’s one of the bargain stocks to consider.

Brookfield has a stellar growth path ahead, not to mention behind it. Shares are up 1,937% in the last 20 years for a compound annual growth rate (CAGR) of 16.25%. This year alone, it’s up 7.31%, continuing to climb while most stocks fall. Further, it trades at a valuable 1.8 times book value, and offers a 3.47% dividend yield.

If we see similar growth over the next 20 years, a $10,000 investment in a bargain stock like this could be worth $65,997 in just a decade with dividends reinvested.


Another great bargain stock right now is CGI (TSX:GIB.A)(NYSE:GIB). This software acquisition company has been hurt by the fall in tech stocks. But there’s no fault owing to the company’s performance. It’s proven time and again that it can make strong, strategic acquisitions, and then use this revenue to make even more acquisitions.

And acquisitions haven’t slowed down even during this market correction. CGI continues to bring in stellar revenue, most recently reporting 6.2% year-over-year growth in revenue, and 7.7% growth in adjusted EBITDA. And it still has $23 billion in its backlog!

So while it’s true that tech stocks are down, CGI is a strong member of the bargain stocks club. Shares are down just 1.6% year-to-date, and it trades at 3.9 times book value. So it’s definitely in value territory. In fact, it’s up 1,542% in the last 20 years, representing a CAGR of 15%. Should it continue on this path, CGI could turn $10,000 into $40,496 in the next 10 years.

Foolish takeaway

Don’t be fooled. Emotion is ever present in the stock market, and that’s a huge part of why these bargain stocks remain so cheap. These prices aren’t going to last long, and these two companies are stellar investments for those looking for long-term buys. With low fundamentals, dropped share prices, decades-long stellar growth, and more growth to come, I would certainly consider buying up these bargain stocks in bulk while you still can. Especially now while we remain in market correction territory.

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends CGI GROUP INC CL A SV.

More on Dividend Stocks

edit U-turn
Dividend Stocks

Down 11% From its 52-Week High, Can goeasy Stock Turn Things Around?

Investors looking for value should be drooling at goeasy (TSX:GSY) stock. With a higher dividend and more room to run,…

Read more »

calculate and analyze stock
Dividend Stocks

Sun Life Stock Is Paying $3.24 Per Share in Dividends: Time to Buy the Stock?

Sun Life (TSX:SLF) stock recently bumped its dividend upwards by 4%, creating even more value for investors today.

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

Retirees: Here’s How to Boost Your CPP Pension

If you hold dividend stocks like Fortis Inc (TSX:FTS) in a TFSA, you'll take home more income than if you'd…

Read more »

A worker gives a business presentation.
Dividend Stocks

3 Safe Dividend Stocks to Own for the Next 10 Years

Given their consistent performances, healthy growth prospects and solid cash flows, these three dividend stocks are excellent buys for the…

Read more »

A bull outlined against a field
Dividend Stocks

The Bullish Market Left These 3 Stocks Behind, But They’re Buys Right Now

The bullish market left Air Canada (TSX:AC) stock behind.

Read more »

grow money, wealth build
Dividend Stocks

2 Ultra-High-Yield Stocks to Buy Hand Over Fist and 1 to Avoid

I have identified two ultra-high-yield stocks that have fallen to their lows despite strong fundamentals because of sector weakness.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Stocks Under $50 New Investors Can Confidently Buy

Investors looking for strong stocks can be a bit overwhelmed with options. Which is why today we're looking at these…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Cash Kings: 3 TSX Stocks That Pay Monthly

These monthly dividend stocks offer steady and predictable income and high yields, making them attractive to investors seeking regular cash…

Read more »