If you’re still considering investing in the market, even during this time of volatility, good for you! It’s actually a great time — when you look at strong companies, that is. In fact, there are some super-strong companies that offer up huge discounts right now, making them cheap stocks you can hold for decades.
If you decide to go this route, a quick turnaround could see your shares bring on retirement even earlier! So, let’s look at the three I’d recommend today.
Nutrien
Nutrien (TSX:NTR) stock might be considered volatile if you look at the last year alone. Nutrien stock soared to all-time highs and then sunk after a market downturn started. The explosion came from sanctions against Russia creating a more lucrative opportunity for the company. But frankly, Nutrien didn’t even need this opportunity for success.
Nutrien stock has been expanding rapidly, including through its e-commerce branch. It also grows through acquisitions, creating a consolidated company in a fractured industry. And it’s now one of the cheap stocks I would consider, given that it trades at just 5.28 times earnings.
Nutrien stock will remain in high demand for decades to come. With less arable land, we need crop nutrients more than ever. If you’re looking to retire early, this stock could certainly help. In fact, if you were to purchase $20,000 in shares today and see them return to 52-week highs, that could turn it into $29,375, without considering passive income through its 2.59% dividend!
BMO
Another of the cheap stocks I would recommend is Bank of Montreal (TSX:BMO). Now, the Big Six banks are solid in general and all cheap. However, BMO stock is the best option if you’re looking for growth as well in the years to come.
BMO stock has been expanding its operations in the United States, with its purchase of Bank of the West providing revenue at a great time. The company purchased it before this downturn, when lower interest rates were happening. And good thing, given the rise we’ve seen this year.
So, even during a potential recession, BMO stock should be just fine. The bank has provisions for loan losses to help it through. And now it’s one of the cheap stocks out there trading at just 6.06 times earnings!
BMO stock will remain around for decades from this growth, but also as it’s the longest serving of the Big Six banks! That history says something, and it says we’re here to stay. So, if you want to ensure that you can set and forget your investment, BMO stock is a great option.
And again, if you were to put $20,000 into BMO stock today and see it return to 52-week highs, that alone would turn into $25,496! Again, that’s without including passive income through its 4.74% dividend yield.
Bottom line
If you’re hoping to set and forget some stocks and see them through to retirement, these are certainly the ones I would choose. BMO stock and Nutrien stock are superior companies with a solid future ahead. And yet they’re some of the cheap stocks out there no one is picking up because of a downturn!
So, take this opportunity to pick up companies that will see you through for decades while they are trading at prices we’re unlikely to see again.
