3 Value Stocks That Are Must-Buys for Canadians in October

Restaurant Brands International (TSX:QSR) and two other top stocks that could be worth buying by Halloween 2024!

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As the TSX Index powers its way to new highs, Canadian investors may wish to revisit their buy watchlists so that they can pick up the deal before the year draws to a close.

Undoubtedly, there aren’t too many must-buy types of opportunities out there after the market’s latest run to all-time highs. That said, for investors seeking a deal as Halloween arrives, the following trio of intriguing value plays may be worth stashing in your long-term-focused TFSA (Tax-Free Savings Account) or RRSP (Registered Retirement Savings Plan).

Restaurant Brands International

First up, we have Restaurant Brands International (TSX:QSR), a fast-food firm that offers an above-average yield relative to many of its industry rivals at the time of writing. Best known for being the firm behind Tim Hortons, Burger King, Popeye’s Louisiana Kitchen, and, most recently, Firehouse Subs, Restaurant Brands is really the one (and perhaps only) stock to own if you want your filling of quick-serve restaurant exposure and fat dividends.

The stock currently trades just shy of $100 per share with a side of a 3.2% dividend yield. As the company invests strategically to grow its earnings across various corners of the globe, investors can expect a solid pace of dividend growth each year.

At just 18 times trailing price-to-earnings (P/E), I view shares of the name as a deep-value bargain. Going into the new year, I’d look for the firm to potentially pull the trigger on another restaurant chain should industry pressures continue into 2025. Either way, look for management to only act if there are ample synergies to be had.

Created with Highcharts 11.4.3Restaurant Brands International PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

IA Financial

IA Financial (TSX:IAG) stock just surged to hit a new all-time high just north of $117 per share. Though the dividend isn’t the richest in the world, currently sitting at around 2.8%, the company’s dividend growth profile and depressed valuation make for a rather intriguing play for defensive dividend investors looking to gain in the new year.

At 15.7 times trailing P/E, IAG shares still look cheap despite the latest melt-up that seemingly came from out of nowhere. In the past three months, shares of IAG are up close to 30%. Though it’d be most prudent to wait for some sort of near-term pullback before initiating a sizeable position, I can’t say I’m against starting a position right here at new highs.

The company’s been firing on all cylinders lately, and the modest multiple gives the stock room close to the year at closer to $125 per share. Either way, fans of dividend growth should give the name a closer look this October.

Created with Highcharts 11.4.3iA Financial PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Enbridge

Finally, we have Enbridge (TSX:ENB) stock, which currently yields a whopping 6.4%. Now, that’s down from its past-year peak, thanks in part due to a massive 27.3% surge in the last year. Though all-time highs may be out of the question for this year, I would not count out a sustained run to much higher levels over the medium term, especially as the company continues to march out of its funk.

At 22.1 times trailing P/E, the $125.2 billion pipeline kingpin seems like an intriguing option for those seeking big passive income before any additional Bank of Canada rate cuts have a chance to make the super-high-yielders that much scarcer.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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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 Joey Frenette has positions in Restaurant Brands International. The Motley Fool recommends Enbridge and Restaurant Brands International. The Motley Fool has a disclosure policy.

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