The stock market continues to be an incredibly volatile place. And yet, investors are missing out on equity opportunities on the TSX today. Ones that may look boring but are anything but.
Today, we’re going to look at what makes a stock “boring,” despite hitting all-time highs. And why investors will still want to consider these three boring stocks at all-time highs to have and to hold forever.
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Why boring is good
Boring means stable. Boring means financially intact. And it also means far less volatility. This is something that investors will certainly want these days, considering the TSX today continues to climb up and down around the $21,000 mark.
Boring stocks, meanwhile, even if hitting all-time highs, can provide you with stability. That stability means a climbing share price, sure. But it also means having cash on hand for more stable growth. That growth can come in the form of dividends, of acquisitions, and other sure-thing growth opportunities.
So, what do these three stocks offer? While they each trade near or at all-time highs, they also provide strong fundamentals. This makes them valuable even at these heights. What’s more, each has demonstrated growth opportunities for the future. So, here are the three I would consider.
Three stocks to consider
If you’re looking at boring stocks, then the three I would consider first and foremost are Alimentation Couche-Tard (TSX: ATD), Dollarama (TSX: DOL) and Intact Financial (TSX: IFC).
For ATD stock and Dollarama stock, these are retail stocks, it’s true. So, you’d think that they weren’t great options in a high interest rate, high inflation environment. But not true. Whether it’s running into the store while commuting or buying cheaper products to save money, both have proven to be stable no matter the market.
In fact, they also provide solid growth opportunities as well. ATD stock has been growing on a global scale, spanning from Asia to North America. It also provides enough cash to be able to expand even more. Same with Dollarama stock, which not only opens more locations but has acquired DollarCity in Latin America. And now there are rumours of expansion in Australia as well.
As for Intact stock, insurance is also a steady option. The company has healthy financials, with insurance remaining a steady and growing opportunity — especially as it expands into more countries. Furthermore, management also seems on board with growth, approving another buyback for the stock.
High but valuable
Despite reaching all-time highs, each of these stocks continues to look valuable, though boring they may be. ATD stock trades at just 19.81 times earnings, offering a 0.71% dividend yield and enterprise value (EV) over earnings before interest, taxes, depreciation, and amortization (EBITDA) of just 15.6. Dollarama stock, meanwhile, trades at 30.91 times earnings, with a 0.28% dividend and 18.68 EV/EBITDA. Finally, Intact stock trades at 38.34 times earnings and has a 2.17% dividend.
Altogether, these stocks have grown steadily in the last year. What’s more, it looks like there will be even more stable and, yes, boring growth to come. So, these are certainly three stocks I would add to your watchlist, even as they climb past all-time highs.
