2 Magnificent Stocks to Buy That Are Near 52-Week Lows 

Here are two magnificent stocks long-term investors will want to consider for outsized gains during this coming rally.

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The search for magnificent stocks poised to take a portfolio on a nice ride is always on. In the Canadian stock market, a few winners not only provide exposure to high-quality dividend stocks, but companies with solid long-term growth prospects as well.

The following two companies are currently trading at depressed levels and are well off their peaks. That doesn’t mean they’re bad businesses at all. It means investors are looking increasingly for growth, making these dividend-paying value stocks more appealing in my eyes.

Here’s why I think investors should be considering these magnificent stocks right now.

Fortis

Incorporated in 1987, Fortis (TSX:FTS) is a top Canadian utilities company I think long-term investors should be focusing more attention on. This company is currently hovering relatively flat over the past year, though it is up slightly. That said, from Fortis’ peak in mid-2022, the stock is down meaningfully. I think this provides a nice buying opportunity for investors.

The utilities giant has diversified its business into 10 different gas and electric operations in the United States and Canada. Serving more than 3.4 million customers, Fortis has become a household name to certain regions in the continent. The company aims to continue diversifying beyond electricity generation toward developing reliable, safe, sustainable, and also cost-effective energy services.

I think this stock represents incredible value at current levels. Trading at just 16 times earnings with a dividend yield of 4.4%, this is a stock with clear long-term upside. For those seeking income, Fortis’ 50 consecutive years of dividend increases should stand out. For those seeking stability, this stock provides that in droves – just look at its long-term stock chart above.

Nutrien

In the agriculture sector, there’s typically little exciting to discuss. However, Nutrien (TSX:NTR) remains one of my top picks in this under-the-radar space.

The supplier of potash and other agricultural inputs had been on a tear during this past commodities cycle, which peaked out around mid-2022. Down roughly 50% from its peak, Nutrien remains a top pick of mine for investors looking for commodities exposure right now.

The company’s core three products are potash, phosphate, and nutrients nitrogen. However, their main product is potash, being a global leader with a 20% share in its production. Presently, the price of Nutrien stock sits around $75 per share, but I think another move back toward its high above $130 is very likely. That’s because the long-term secular demand drivers underpinning this stock remain strong. We all need to eat, and Nutrien provides the key ingredients to make food production possible in many parts of the world.

Trading at 33 times earnings, Nutrien does look expensive, partly as a result of lower earnings guidance and underwhelming bottom-line results. But with a dividend yield of 3.3% and strong forward prospects, I think this is a stock worth buying on the dip.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and Nutrien. The Motley Fool has a disclosure policy.

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