So far, 2023 can be defined in a single word: volatile. And that word applies to large swaths of last year, too. Not to disappoint, but it will likely be a word thrown around well into 2024. Fortunately, a bear market extending into next year isn’t all that bad news for investors. This is because it’s still a prime time for Canadian investors to buy a handful of stellar investments.
Here’s a look at some of the stellar opportunities for Canadian investors and why now is the time to buy.
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A bank with nearly two centuries of dividends
Bank of Montreal (TSX:BMO) is a great example of a stock at a crossroads for Canadian investors. BMO is one of Canada’s big banks. In fact, BMO is the oldest of Canada’s big banks and has been paying out a juicy dividend for nearly two centuries.
As of the time of writing, BMO is down 10% year to date and a whopping 16% over the trailing two years. Over that time, the price to earnings (P/E) for the bank has dropped to an attractive 10.89.
In short, Canadian investors can scoop up shares of this big bank at a whopping discount right now. By extension, that drop has also swelled the bank’s dividend to a juicy 5.28%.
And that’s not all. Prospective investors should also note that earlier this year, BMO completed the acquisition of U.S.-based Bank of the West. That deal propelled BMO into position as one of the larger banks in the U.S. market, with a branch network that now extends into 32 state markets.
How about another centenarian stock?
BCE (TSX:BCE) is another fine investment option for Canadian investors. BCE has been paying out dividends for over a century. The company is one of the largest telecoms in the country, with subscription offerings that blanket Canada in coverage.
Prospective investors should note that telecoms are some of the most defensive options on the market. Despite that label, there’s still plenty more to love about BCE.
BCE also boasts a massive media segment, which provides an alternative yet complementary revenue stream. That revenue stream allows BCE to pay out its juicy dividend, which currently boasts an insane 7.47% yield.
That handily makes BCE one of the best-paying dividend stocks on the market. And like BMO, much of that juicy yield can be traced back to the stock’s performance in recent years.
As of the time of writing, BCE trades down over 12% year to date and a whopping 18% over the trailing two years. Prospective Canadian investors should also note that BCE has an established cadence of providing annual bumps to that dividend.
In other words, BCE makes a great addition to any long-term portfolio, which can be purchased at a huge discount right now.
How about a defensive gem?
I would be remiss if I didn’t mention another great defensive stock for Canadian investors. That stock is Canadian Utilities (TSX:CU), which also happens to be the first and one of only two Dividend Kings in Canada.
That means that Canadian Utilities has provided investors with an incredible 50 consecutive years of dividend increases. That’s an incredible achievement, and today, that dividend boasts a massive 6.08% yield.
Utilities are incredibly defensive businesses. In short, they provide a service that is backed by regulated contracts that can span decades. This provides the company with a reliable revenue stream, which can withstand the market volatility that we’ve seen recently.
And that’s why, despite an 18% year-to-date dip in the stock and a 14% drop over the past two years, Canadian Utilities remains one of the best defensive picks on the market.
Canadian investors: The time to buy is now
No investment is without risk, and no investor can predict how the market will perform. That’s why it’s important to diversify your portfolio.
That’s also why the three stocks mentioned above are, in my opinion, stellar options for Canadian investors that can provide growth and income-earning potential for years to come.
