If you’re a strong investor, you likely have a set up already in place for saving to make investments. But right now, I would understand if you weren’t too keen to invest. The market continues to trade poorly and could actually drop further at any time.
Why? A recession is still predicted in 2023, though it’s likely to be a mild one, according to economists. This was originally supposed to be around May but could be mid-summer now. Given this, there is still a drop that could come. So, yes, making some large investment right now maybe isn’t the best choice.
That being said, if you have $1,000 you want to invest long term and are looking for a deal now and growth later, here are a few TSX stocks to consider for May 2023.
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goeasy
goeasy (TSX: GSY) shares are down 23% in the last year alone. That’s after hitting all-time highs during the time of economic strength just over a year ago. Now, the company trades in value territory at 10.9 times earnings as of writing.
So, what gives? Honestly, the investment seems to be led by the market and not by goeasy stock performance itself. In fact, the company continues to beat earnings estimates and has even reported record loan originations. It continues to have a solid footing ahead of it for growth, with a strong outlook as well.
Yet financial institutions don’t do well during downturns, which is why investors likely fled from goeasy stock. When a bull market comes after this downturn, you would definitely do well considering it now. A $1,000 investment as of writing at $92 per share could turn into $1,565 back at 52-week highs.
Scotiabank
The Big Six banks also fall into this category, with shares not doing well during economic downturns. That’s even when the companies themselves are doing quite well. In the case of Canadian banks, their performance seems linked to American bank performance. But the sides are very different.
Really, if you’re worried about the performance of Canadian banks you may want to consider how much U.S. exposure they have. In the case of Bank of Nova Scotia (TSX: BNS), its international operations focus on Central and South America, where there are emerging markets. So, it’s not likely to be as swayed by American performance.
Trading at 9.34 times earnings, with a dividend yield at 6.04%, it’s a solid buy with shares down almost 20% in the last year — especially if you’re considering a long-term hold. A $1,000 investment today at $67 per share could turn into $1,290 at 52-week highs.
NorthWest Healthcare REIT
For something different, you might be an investor that doesn’t want to wait as long to see strong cash flow. In that case, look at a real estate investment trust (REIT) like NorthWest Healthcare Properties REIT (TSX:NWH.UN). While the company hasn’t increased its dividend since coming on the market, that dividend has remained stable. Further, it’s used the cash from long-term contracts with hospitals and healthcare facilities to expand.
The healthcare REIT now spans the globe and continues to bring in stable revenue. NorthWest stock continues to hold an average lease agreement at 14 years, with a 97% occupancy rate. That’s solid income for both the company as well as its investors.
Yet shares are down 38% in the last year, which has brought its dividend yield up to 9.55%. That would mean your $1,000 investment today at $8.35 per share could be worth $1,635 if the stock is back at 52-week highs.
