Is your portfolio diversified? Whether it’s the change of the season or a pre-determined time, most investors look to re-balance their portfolios at some point. One such time for investors to take a look is actually right now as volatility has put some stellar stocks on sale. This makes them great value stocks every investor should consider.
Value stock #1: BCE
BCE (TSX:BCE)(NYSE:BCE) is one of the largest and most well-established telecoms in Canada. BCE provides subscription services which include wired, wireless, internet, and TV offerings to customers across the country.
That national (and reliable) network is a competitive advantage that BCE has over its fellow big telecom peers.
Additionally, BCE also boasts a massive media segment encompassing dozens of radio and TV stations. The media segment is complementary to its core subscription business, providing yet another revenue stream for the company,
As of the time of writing, BCE is trading down nearly 4% year to date, putting it into value-stock territory. So, why should investors buy the stock now? There are two reasons to note.
First, the last time that BCE traded at its current level was nearly a year ago. In other words, this is a good entry point for prospective investors that missed the last entry point.
Second, BCE is a stellar investment that won’t remain at this current price. This is particularly true as we head into the back-to-school and all-important holiday seasons. In short, the company runs a reliable (growing) business that generates a recurring and reliable revenue stream. BCE also pays out one of the best dividends on the market.
That dividend, which BCE has paid out for well over a century without fail, works out to a 5.71% yield.
Value stock #2: The (growth) convenience factor
Technically, Alimentation Couche-Tard (TSX:ATD) is no longer a discounted stock. Fortunately, that shouldn’t sway would-be investors from considering this stellar investment option.
Couche-Tard is one of the largest convenience store and gas station operators on the planet. Specifically, the company has a network of approximately 15,000 locations across more than a dozen countries.
There are a few key points for seeing Couche-Tard as one of the value stocks every investor should consider.
First, let’s talk about growth. Couche-Tard has taken an aggressive stance toward growth. First, that growth was focused on expanding its network. In recent years, that has shifted towards rebranding and realizing synergies from its vast network. Finally, this has now shifted towards establishing an EV network.
Following success in Europe, Couche-Tard is now charging (pun intended) towards standing up an EV network. Specifically, Couche-Tard is targeting a 200-site EV network in the U.S. within the next two years.
This will further accelerate the company’s growth. More importantly, it provides an option for customers to stay on-site (and purchase products) while their vehicles are charging.
That’s a historic shift in mindset. Gas stations aren’t really seen as destinations to customers, but rather interim stops enroute to a destination.
There are other value stocks every investor should consider
Couche-Tard and BCE are just two of a handful of stocks that have significant long-term potential for investors. What the duo of stocks above offer is an established business with some defensive appeal that will do well as part of any well-diversified portfolio.
In my opinion, investors should own one or both stocks as part of a larger portfolio.
