The volatility that we’ve seen for much of 2022 is showing no signs of settling down. Fortunately, there is a bright side to volatility. Some fantastic deals on some of the best stocks on the market are out there right now.
Here’s a look at some of the discounted gems to add to your portfolio.
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Fantastic deals are everywhere
Let’s start off by mentioning Teck Resources (TSX: TECK.B)(NYSE: TECK). Teck is a mining company that should be on the radar of investors everywhere. The company is well-diversified, with operations across the U.S., Canada, Peru, and Chile.
Teck’s mining focus is focused on copper, zinc, and steelmaking coal. These are stable commodities, which is a welcome change from the volatility we’ve seen in other segments of the market. Additionally, those materials are in high demand by a variety of renewable energy facilities. That demand is only going to increase over time.
That growing demand is only part of the reason why Teck is a fantastic deal right now. Amid the overall market volatility, TECK has been dragged down in recent weeks.
Specifically, the stock is up a whopping 20% year to date, but looking at a more recent 3-month period the stock is down well over 13%. That’s a great discount on an otherwise stellar long-term investment.
Buy this retailer now before the holidays
Canadian Tire (TSX: CTC.A) is one of the largest and most well-known retailers in Canada. The company has a storied history going back decades, with trips to the local ‘tire’ a common memory among Canadians.
Today’s Canadian Tire spans multiple brands and channels. The company has done a brilliant job of expanding its operations over the past decade. More importantly, Canadian Tire has embraced technology as both an in-store selling aid, and a new channel for sales. That’s no small feat for a legacy brick-and-mortar operation.
In fact, over the past few years, Canadian Tire has started to build a moat around its growing digital business, establishing exclusive brands and products only offered through its digital and in-store channels.
So then, what makes Canadian Tire one of the must-have fantastic deals right now? The stock is trading down a whopping 13% year to date. Additionally, the P/E sits at just 8.9, which is a long way from the double-digit territory the stock was in the last year.
Oh, and let’s not forget two more reasons to pick up Canadian Tire at its discounted rate right now.
First, we have timing. In a few short weeks, we’ll be heading into the busy holiday shopping season. More importantly, we’re approaching the first holiday shopping season since the pandemic started when stores will be fully open to customers.
Finally, let’s talk dividends. Canadian Tire offers a juicy quarterly dividend that carries a yield of 3.61%, making the stock a worthy income pick too.
Home is where you…can generate an income
One area of the market that still frustrates many Canadians is real estate. Would-be landlords are increasingly priced out of the market due to sky-high prices. And now that interest rate increases are finally bringing home prices down, those rising rates are driving payments up.
Fortunately, there’s another option. RioCan Real Estate (TSX: REI.UN) is one of the largest REITs in Canada, with a growing exposure to mixed-use residential properties.
The residential properties, branded as RioCan Living, sit atop several floors of retail. The sites are located along transit corridors in major metro areas, where the demand for housing is huge.
For would-be landlords, it’s a win-win. There’s no massive down payment, no mortgage, and no tenants. The investment is also well-diversified across hundreds of properties. You even get a monthly income, like rent.
RioCan pays out a distribution on a monthly cadence, much like a tenant paying rent. The current yield works out to 5%. This means that a $60,000 investment (considerably less than a recommended down payment) will earn a monthly income of just over $250.
RioCan is currently down over 13% year to date, making it one of the fantastic deals right now on the market that investors should act on.
