3 Value Stocks I’d Pick Up Now and Hold Forever

These value stocks aren’t just great buys now for their dividends; they’re also solid long-term holds for seriously stable cash.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 21, 2022 2:15 pm EDT

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Canadian investors looking for value stocks need to think well beyond the current market performance. The TSX today remains down by about 8.55% year to date. So, it has many looking at stocks that aren’t doing well and thinking maybe they’ll pass.

Honestly, don’t! You may be missing out on an opportunity you’ll have to wait another decade to enjoy. That’s a decade of enormous growth from these value stocks. Here are the three I would pick up and hold forever right now.

NorthWest REIT

First up is NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest stock offers value in a couple of ways. It’s a real estate investment trust (REIT) with properties around the world in every area of the healthcare sector. This allows for a diversified set of revenue coming in.

However, NorthWest stock is also one of the value stocks to buy for fundamentals. It continues to post record-setting revenue that it uses to make even more acquisitions. While its dividend yield hasn’t grown since coming on the market, it could in the near future.

Even so, right now, it’s a value stock trading at just 6.74 times earnings. Plus, it offers a substantial dividend yield of 6.83% as of writing.

BMO

The Big Six banks all offer value right now, but Bank of Montreal (TSX:BMO)(NYSE:BMO) might offer the most. First, it’s been growing, even during the pandemic, making acquisitions that have increased its growth throughout the United States. Meanwhile, it offers one of the highest dividend yields of the Big Six banks.

Provisions for loan losses have helped BMO stock stay on top, and that doesn’t look like it’s about to slow down. That’s likely why it was able to increase its dividend by an incredible 25% at the beginning of 2022.

Plus, BMO stock is one of the best value stocks to buy, trading at just 7.57 times earnings. So, lock in that 4.41% dividend yield while you can.

Nutrien

Finally, Nutrien (TSX:NTR)(NYSE:NTR) became a volatile stock earlier this year and is now one of the value stocks I’d consider. Nutrien stock is a stellar long-term hold for those who believe that we’ll continue needing to, you know, eat in the near future.

As one of the world’s largest crop nutrient producers, Nutrien stock has a secured future made more secure by its acquisitions and online operations. Yet after rising to all-time highs and then falling during the market correction, investors may not be as eager to buy.

Honestly, I would be. Nutrien stock is one of the value stocks trading at just 7.37 times earnings right now with a dividend yield of 2.05%. Plus, it’s not like shares are performing poorly, up 29% year to date. Still, it’s down 16% from all-time highs. Now is the time to buy.

Bottom line

If you’re looking for long-term holds, these are the top three value stocks I would consider right now. Each is in a secure industry that’s only set to continue growing in the years and decades to come. Add in a cheap share price and solid dividend, and you’ve got yourself a deal.