Canadian investors these days seem to want to gain back the returns lost over the last year, and fast. Because of that, they’re continuously eyeing up stocks that have the potential for massive growth.
The problem is, these growth stocks can suddenly collapse due to volatility as well. That is why today, I’m taking a different tack. We’re going to look at stable stocks that have been all but ignored in the last while and why they’re excellent choices for your portfolio today.
CAE stock
Defence stocks are, perhaps unironically, defensive in nature. These companies are, in many cases, government funded and have long-term agreements in place that equal long-term income as well.
In the case of CAE (TSX: CAE) stock, this is an excellent example of a company that isn’t going anywhere. CAE stock provides training simulations for everything from aviation to security. While much of its revenue comes from its training, it also has another stream of revenue through supplying personnel on lease.
Shares of CAE stock are down 5% in the last year though up about 33% since reaching 52-week lows last September. It remains a strong stock with a stable balance sheet, needing just 70% of its current equity to cover all debts. Furthermore, shares are up 180% in the last decade, which has been quite stable outside of the downturn and crash during March 2020.
Automotive Properties REIT
Then we have Automotive Properties REIT (TSX: APR.UN), which may not seem like the best choice right now. But trust me, it is. Right now, Canadians may not be in the market for a car, but in the next few years and decades, not only will they need one, but an electric one at that.
Automotive Properties REIT therefore offers a substantial long-term opportunity, with properties located across Canada in strategic urban locations. Shares are down 12% in the last year, yet now it looks like it may be in value territory.
Automotive Properties REIT currently offers a 6.34 price-to-earnings ratio as well as a 0.86 price-to-book value ratio. You can also grab a 7% dividend yield, which brings in plenty of passive income while you wait for this recovery. Shares are up a stable 15% in the last decade as well.
Storage Vault Canada
Finally, we have Storage Vault Canada (TSX: SVI), which couldn’t be a more stable and growing investment at this point. Everyone needs storage at some point in their life, which is why the company has done so well over the years. But in the last few years, there has been practically an explosion in demand.
This comes from Storage Vault stock seeing an increase in the need for small business storage. All those online stores from your local retailers need storage and don’t need a massive place to store it. Plus, online offerings have improved, making it incredibly easy to use the service.
Yet shares are kind of all over the place, up 4.3% in the last year. Even so, shares are up a whopping 2,240% in the last decade alone from all this business growth. And that could very well continue to happen in the future.
