3 Top Canadian Value Stocks in December 2023

These three value stocks offer immense growth and dividend opportunities as we return to normal in the next year.

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Value stocks continue to be available in bulk these days. Yet many Canadians aren’t taking the opportunity to pick up these value stocks as they continue to fear the future of the market.

So today, let’s look at the value stocks that provide you with the best protection and the best deal.


Bank of Nova Scotia (TSX:BNS) is definitely one of the top value stocks I would consider right now. Coming out of earnings, Scotiabank reported a lower fourth-quarter profit, which missed analyst estimates. However, it still showed signs of improvement, which is why it could be a great deal on the TSX today.

Scotiabank is preparing for mounting expenses heading into 2024, with higher loan reserves to help out in the future. Meanwhile, it earned $1.4 billion or $1.02 per share for the quarter, which was lower than last year and below estimates. It also set aside the most of the banks with $1.3 billion in provisions for credit losses.

So while revenue and profit were up, as well as expenses, the bank seems to be at the very least in preparation mode. In fact, it could be a great deal with shares now trading at 10.5 times earnings, a dividend yield of 6.95% and shares down 10% in the last year. And with its emerging markets investments, returns could be quite large in the near future.

Royal Bank stock

Scotiabank certainly has a strong future, especially in terms of emerging market activity. However, Royal Bank of Canada (TSX:RY) has also shown immense signs of strength. The bank also puts aside massive provisions for loan losses at $720 million. This was far higher than anticipated, but warranted based on the bank’s predictions.

While 2024 looks like it may be difficult for investors and the bank with higher interest and unemployment rates, the bank was still able to make a large profit. Net income came in at $14.9 billion, which was down 6% year over year , yet there was enough confidence for the stock to increase the quarterly dividend to $1.38.

Royal Bank has maintained strength from these types of preparations. So even as profit looks to be on the recovery, the bank maintains that it will continue to put aside provisions until loans are under control. It’s this type of strength that led to an increase in share price, though it still trades at just 11.7 times earnings, with a 4.49% dividend yield, and shares down 8% in the last year.

Canadian Utilities

In another industry, Canadian Utilities (TSX:CU) also looks like it will be quite a winner in the next year or so. That’s mainly because it provides essential services through utilities. We need the lights on, running water, and all those everyday services. And that’s where Canadian Utilities comes in.

What’s more, it offers the stability of long-term contracts, as well as growth through acquisitions. Yet higher interest rates and foreign exchange losses have led to lower profits and even losses. Though these are short-term issues, providing investors with a great time to get in on a steal.

The stock now trades at just 14.2 times earnings, with a dividend yield at 5.82% as of writing. And with shares down 16% in the last year, it’s a great time to pick up the stock today. So if you’re looking for value stocks, consider these three first and foremost.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Royal Bank of Canada. The Motley Fool recommends Bank of Nova Scotia. The Motley Fool has a disclosure policy.

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