If you have a bit of cash to spend today, there are plenty of interesting opportunities across the stock market. While the economy is slowing, interest rates are coming down. That bodes favourably for a diverse mix of Canadian stocks. If you’ve got $3,000 to invest, here are three interesting Canadian stocks for a mix of value, income, and growth in the years ahead.
An undervalued REIT for the long term
Interest rates continue to decline. Inversely, real estate stocks have been on the rise. One under-appreciated stock is Minto Apartment Real Estate Investment Trust (TSX: MI.UN). It operates a portfolio of 28 apartment properties across Toronto, Montreal, Ottawa, and Calgary.
These properties are in some of the most attractive urban neighbourhoods in Canada. Every quarter, it has been enjoying attractive high single-digit rental rate growth.
Minto has a new management team that has cleaned up its balance sheet and focused on per unit cash flow growth. If interest rates improve, not only will its cost structure improve, but its development pipeline could also yield attractive returns over the longer term.
Minto REIT yields 3% today. This stock trades at a 25%-plus discount to its private market real estate value. It’s an attractive time to add it before it really takes off.
A top energy stock temporarily beaten down
Canadian Natural Resources (TSX: CNQ) is not just one of the best energy companies in Canada, it is one of the best overall companies in Canada!
The company produces energy with a factory-like efficiency. It has 30-plus years of energy reserves available with low decline rates. While it is subject to energy prices, the energy producer can generate excess cash even when oil prices dip below the US$50 per barrel range.
CNQ hit its long-term debt targets earlier this year. It now plans to return 100% of its excess cash flow to shareholders.
CNQ has an incredible record of growing its dividend. It has increased its dividend by a 20%-plus compounded annual rate for more than two decades.
While its stock is down 10% in the past month, it trades with an attractive 4.6% yield. While oil prices are down, you can lock in a very nice yield in this well-run business.
A small cap stock making good strides forward
Sangoma Technologies (TSX: STC) is an interesting small cap stock that could have significant upside if you are patient. The company provides a broad array of communication software services for small-to-medium sized businesses in North America.
It saw its stock soar during the pandemic. However, STC stock swiftly dropped after demand started to taper and a series of costly acquisitions started to impact the top and bottom line.
The good news is that Sangoma has a bright new management team. They are starting to make very good strides at a turnaround. While sales have been stable, Sangoma has cleaned up sloppy operations, focused on profitable business, and integrated its product assortment under one platform.
Today, Sangoma is generating a tonne of free cash flow, paying down debt, and investing into new growth initiatives. If it can continue to execute, the stock looks very cheap today. This is a higher risk investment, but it could also provide substantial reward ahead.
