Sitting on Cash? These 2 Stocks Are Great Buys

The best stocks to buy now include Fiera Capital (TSX:FSZ).

| More on:
money cash dividends

Image source: Getty Images

If you’re sitting on cash in 2023, consider yourself lucky. Most Canadians have faced severe inflation, lower wages, and a rise in interest payments in recent months. If you’re left with cash to invest at the end of that you’re in an excellent position to snap up some bargains on the stock market. 

Here are the top two stocks that you should consider in 2023. 

Best dividend stock to buy

Fiera Capital (TSX:FSZ) is a little-known investment company that consistently delivers handsome dividends. The stock currently offers a 9% dividend yield, making it one of the highest-yielding dividend stocks on the market. 

Fiera helps institutional investors and wealthy families deploy capital into niche private assets such as private debt securities, infrastructure assets and liability driven investments. Put simply, it’s a money manager with $158 billion in assets under management (AUM) as of September 2022. 

Asset managers have faced a difficult period as interest rates climbed, liquidity evaporated, and investors became concerned about an upcoming recession. That is probably why the stock is trading 6.5% lower than last year. However, the management team has brought founder Jean-Guy Desjardins out of retirement to fill the chief executive officer role again, which could help bolster the company’s outlook. 

Under the right circumstances, Fiera could have an excellent year. If the company can invest in publicly traded stocks and private debt instruments at lower valuations, it could generate better returns for its clients and investors over the long term. 

However, cash flow is key, and I expect rising rates to help investors like Fiera generate more cash from dividends and private loans in 2023 and beyond. If the team can sustain the dividend payout, income-seeking investors should certainly add this stock to their list. 

Best growth stock to buy

WELL Health (TSX:WELL) is probably the best growth stock to buy in 2023. The company has lost roughly 63% of its value since it peaked in 2021. However, the underlying business is still thriving. 

The company delivered $145.8 million in revenue in its most recent quarter. That’s 47% higher than the previous year. In 2023, the company expects to generate over $550 million in revenue. Meanwhile, the company is worth only $766 million, which means the stock trades at a price-to-sales ratio of 1.4. 

That valuation is simply unjustified for a company that has consistently delivered growth and is somewhat immune to the tech sector’s ongoing struggles. Telehealth and virtual healthcare are likely to keep growing, despite the upcoming recession.  

I expect investors will eventually recognize the value of this defensive growth star. WELL Health could have tremendous potential if it achieves its targets and rebounds to its earlier valuation. Keep an eye on this underrated growth stock. 

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 Vishesh Raisinghani has positions in Well Health Technologies. The Motley Fool recommends Fiera Capital. The Motley Fool has a disclosure policy.

More on Investing

bulb idea thinking
Stocks for Beginners

3 No-Brainer Stocks to Buy Now for Less Than $1,000

If you're looking for companies bound for more greatness, these three no-brainer stocks are easy buys, no matter what the…

Read more »

Target. Stand out from the crowd
Investing

Finning International: A Reasonable Buy Here

Finning International is a cyclical dividend stock that offers decent long-term returns potential of north of 10%.

Read more »

Dollar symbol and Canadian flag on keyboard
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Here are four stocks that you can buy and hold for decades in your TFSA.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, April 23

Important economic data from the United States could keep TSX stocks volatile this morning as falling metal prices pressure the…

Read more »

Dividend Stocks

Buy 3,000 Shares of This Super Dividend Stock For $3,300/Year in Passive Income

Are you looking for a super dividend stock to buy now and generate a whopping passive-income stream? Here's an option…

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

BIP (TSX:BIP) stock fell dramatically after year-end earnings, but there could be momentum in the future with more acquisitions on…

Read more »

Utility, wind power
Dividend Stocks

So You Own Algonquin Stock: Is It Still a Good Investment?

Should you buy Algonquin for its big dividend? Looking forward, the utility is making a lot of changes.

Read more »

Big Bitcoin logo.
Investing

2 Cheap Stocks to Add to Your TFSA Before They Get Expensive

If you want to buy the dip and sell the rally, these two TSX stocks are a bargain you don’t…

Read more »