When market volatility hits, investors often turn to defensive stocks and precious metals or just avoid investing altogether. What investors often forget is that it’s during times of volatility that we can find great bargain stocks you can buy today and hold forever.
Here’s a look at three great bargain stocks you can buy today.
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Start with a great defensive pick
The appeal of a defensive stock cannot be underrated. And that’s why Fortis (TSX: FTS) is the first of the bargain stocks you can buy today. Fortis is one of the largest utilities in North America, with a sprawling portfolio that spans 10 operating regions across Canada, the United States, and the Caribbean.
Utility stocks like Fortis generate a stable and recurring revenue stream that comes thanks to a very lucrative business model. In short, Fortis is bound by long-term regulated contracts that guarantee a recurring revenue stream. Many times, these regulated contracts can span decades in duration.
That stable revenue stream allows the company to invest in growth and pay out a generous dividend. As of the time of writing, that dividend works out to an impressive yield of 4.01%.
Additionally, it’s worth noting that Fortis is one of only two Dividend King stocks on the market boasting an impressive 50 consecutive years of annual dividend increases.
That fact alone makes Fortis a great long-term option to consider for your portfolio. But let’s also not forget that Fortis is also one of the great bargain stocks you can buy today. The stock is currently down over 7% over the trailing 12 months.
Bargain stocks you can buy today: a telecom?
Telecoms like BCE (TSX: BCE) represent another defensive option for investors looking at bargain stocks to buy today. BCE is one of the largest telecoms in Canada boasting an impressive network that comprises wireline wireless internet and TV subscription services.
The company also boasts a massive media segment encompassing dozens of radio and TV stations that blanket Canada in coverage. This provides an additional and complementary revenue stream to the company.
BCE’s multiple revenue streams allow the company to pay out a very juicy quarterly dividend. As of the time of writing, that dividend works out to an appetizing 7.03% yield. This makes BCE one of the better-paying options on the market.
It’s also worth noting that BCE has paid out dividends to shareholders for well over a century. The company has also provided annual increases to that dividend without fail for over a decade. Like Fortis’s appealing dividend history, this makes BCE a very attractive option for income seekers.
And the timing could not be better. BCE currently trades down 12% over the trailing 12 months. This makes it an excellent time to pick up one of the bargain stocks you can buy today at a good discount.
Generate a growing revenue stream, just like a landlord
Much of the volatility that we are seeing in the market this year, which has led to the above stocks being classified as bargain stocks you can buy today stems from rapidly rising interest rates. Those interest rates have also made it difficult for prospective would-be landlords to purchase rental properties.
That’s where the appeal of RioCan Real Estate (TSX: REI.UN) comes into play. RioCan is one of the largest real estate investment trusts (REITs) in Canada with a sprawling portfolio of properties around Canada’s major metro markets.
Most of those properties our commercial retail sites. In recent years, RioCan has shifted that mix to include mixed-use residential properties. And that is where an opportunity for investors lies.
The mixed-use properties comprise residential towers that sit atop several floors of retail. The properties are also located in high-traffic in-demand areas along transit routes.
Investing in RioCan can provide investors with a recurring and growing monthly income stream, much like a landlord. One key difference is risk. Unlike rental property, investing in RioCan spreads risk among hundreds of units. It also doesn’t require a massive down payment or tenants.
RioCan’s monthly distribution works out to a respectable 5.47%, making it a great time to buy for the long term.
