2 Bargain Stocks You Can Buy Today and Hold Forever

When it comes to bargain stocks, you want to be paid to wait. That’s why these are the top choices on the TSX today for investors.

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 August 8, 2023 5:45 pm EDT

| More on: VITL.UNSRU.UN

When it comes to the TSX today, it’s a pretty weird place. There are many stocks that have been soaring by double digits this year. Others have sunk into 52-week lows, if not all-time lows.

But these lower offerings can provide a bargain for investors willing to pick them up now and hold forever — or at least for the next decade or so. This is why I’m going to focus on two bargain stocks investors should pick up right now.

NorthWest REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a solid choice for those seeking a bargain but wanting to get paid to wait. The healthcare real estate investment trust (REIT) is a top dividend provider but recently hit all-time lows.

This came after the company announced it would not be going through a United Kingdom joint venture and saw a selloff on top of its already strong selloff over the last few years. The downturn came mainly from the increase in share price during the pandemic, given that the stock invests in healthcare properties around the world. Once restrictions decreased, shares decreased in NorthWest stock as well.

Today, it’s one of the bargain stocks that cannot be beat. While operating costs have gone up, it continues to hold a diverse range of healthcare properties around the world. It also seeks out more opportunities to expand its reach. Further, with a 97% occupancy rate and 14-year average lease agreement, dividends should remain completely stable.

With shares of NorthWest stock down 47% on the TSX today, it’s a great time to buy while it offers a dividend yield of 11.68%. Further, shares have increased by 10% in the last month. So, you could be buying on the recovery.

SmartCentres REIT

Another great REIT to consider is SmartCentres REIT (TSX:SRU.UN). The well-known brand operates its properties across Canada, creating retail options with partnerships as large as Walmart. Yet shares of the stock haven’t done so well this year, as operating costs have climbed, as have interest rates.

Even so, there are multiple reasons to consider the REIT. SRU stock is a solid option for those investing in the baby boomer retirement plan. The company is creating retirement communities where people can live, shop, and eat — all in one location. And that’s only going to expand over the next decade and beyond.

Yet again, it’s now one of the bargain stocks that’s hard to beat. Shares trade at just 13.74 times earnings, and it also offers a solid 7.41% dividend yield. Yet again, shares are down 13.5% in 2023, offering a great opportunity to pick up the stock. And as with NorthWest stock, is been on the recovery over the last two months, with shares up about 5% during that time.

All taken into consideration, these are two strong bargain stocks you can buy now and hold forever. And while you hold them, they’ll pay you a handsome dividend for your patience while they return to normal trading.