Millennial investors shouldn’t let any choppy moves derail their longer-term investment game plans. Indeed, times of panic and turmoil are actually good for young investors who have excess capital sitting on the sidelines. Arguably, millennials should hope for corrections and bear markets to happen so that they can get more quality merchandise for a lower price. Indeed, it never feels good when stocks slip off a slope, even if we keep telling ourselves that prices are better.
It’s hard to think longer term when the talking heads on television keep going on about a lengthy list of risks that could derail stock markets over the near or medium term. It’s never a good idea to time markets, just as it’s a bad idea to predict what central banks will do next.
Millennials: Plenty of value opportunities in the markets today
Interest rates have had quite an impact on markets. And though a return to the low-rate world we’re used to may still be a few years away, I’d not time rates or try to predict what’s to happen with economic growth or inflation. Even if you’re a seasoned economist, it’s hard to beat the markets, given their high degree of unpredictability.
Instead of trying to predict if markets will go up, down, or sideways, focus on finding companies that you wouldn’t mind owning through thick and thin. Indeed, some of the best firms tend to be the ones that you can confidently reach for when the market goes into a state of shock or panic.
Warren Buffett loves “wonderful” companies at reasonable prices. Right now, there are plenty of wonderful firms at valuations you could consider more than reasonable. However, investors will need to brave the tough terrain that could lie ahead if they want to seize the best opportunities the market has to offer currently.
In this piece, we’ll check out MTY Food Group (TSX: MTY) and Restaurant Brands International (TSX: QSR), two solid dividend titans worth a second look as markets throw a tantrum.
MTY Food Group
MTY Food Group has been slipping lower in recent weeks, with shares down more than 26% from its highs. The company is behind food court restaurants you’ve probably eaten at on many occasions without even knowing.
Amid the COVID pandemic, the stock tanked violently, only to recover most of the ground in less than a year. Though the stock isn’t nearly as cheap today as it was in early 2020, I think shares are rich with value at 13.5 times trailing price to earnings (P/E).
You’re getting a nice 1.94% dividend yield and some pretty stellar restaurant brands that should fare well once consumer spending recovers and malls fill again. For now, the stock’s way too unloved, given fears of a looming recession. I think the dip to $52 and change is more of an opportunity for long-term investors.
Restaurant Brands International
Restaurant Brands International is another restaurant play that I view as far more resilient in the face of economic woes. The firm’s brands include Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs — not exactly pricey fine-dining restaurants!
In fact, Burger King has one of the better value menus out there! And if a recession weighs on our wallets further, I think more people could be heading over to the “BK” and Popeyes in search of a better deal for their money.
The recent stock slip seems absurd. Indeed, obesity drugs (like Wegovy) could curb the broader hunger for unhealthy fast food. However, I still see QSR doing quite well going into 2024 as it does its best to win business from fast-food rivals. Finally, there’s a nice 3.3% dividend yield to sink your teeth into!
