Finding value in any market can feel like a more daunting task than ever before. With valuation multiples where they are right now, I’d certainly agree that there’s not as much true value in the market right now compared to previous years.
However, on the TSX, there happen to be a number of top options I think are worthy of consideration. Here are five of my top picks and why I think these value stocks are worth a look right now.
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Manulife Financial
Manulife Financial (TSX:MFC) is one of the top global financial services companies offering wealth and asset management. The company has continued to see strong growth from its domestic operations, as well as its global presence in key high-growth markets in Asia.
This past quarter was a strong one, with the company exceeding earnings estimates and seeing a nice uptick following earnings. With strong growth driven by a 40% earnings increase from its Asian divisions, this is a top defensive bet on the insurance industry I think is worth making (for more than the company’s robust 3.6% dividend yield).
Alimentation Couche-Tard
With more than 14,000 locations throughout North America, Europe, and other continents, Alimentation Couche-Tard (TSX:ATD) is a world leader in the convenience store and gasoline retail sectors.
With estimated sales of $71.9 billion over the past 12 months, Couche-Tard is among the biggest in Canada in terms of revenue. For those looking for a growth-by-acquisition play in a rather boring sector, this company is anything but boring (in terms of returns) and worth considering in my books.
Bank of Nova Scotia
As one of Canada’s “Big Five” banks, Bank of Nova Scotia (TSX:BNS) is a cornerstone of the country’s financial industry. The bank provides a distinctive blend of home stability and global exposure, operating in more than 50 countries, with a notable presence in Latin America.
Despite global economic challenges, Scotiabank has maintained a strong profit record. This past quarter highlighted the company’s effective use of capital with a strong return on equity (ROE) of 14% in fiscal 2024. With a dividend yield of almost 6%, the bank has one of the most alluring rates in its peer group. Scotiabank is still a strong option for investors looking for both growth and income.
Suncor Energy
With an emphasis on integrated energy solutions and oil sands development, Suncor Energy (TSX:SU) is a significant participant in Canada’s energy industry.
Suncor announced an adjusted profit of $1.48 per share in the third quarter of 2024, which was significantly higher than the $1.08 analysts had predicted. As a sign of its confidence in its financial stability, the corporation also increased its quarterly dividend by 5% to 57 cents per share.
Enbridge
With the longest crude oil and liquids pipeline system in the world, Enbridge (TSX:ENB) plays a vital role in the North American energy infrastructure sector. Because of its solid dividend history and high cash flow, Enbridge is a top pipeline player that’s become a dependable option for income investors.
With a market capitalization of around $93.5 billion, Enbridge is a major player on the TSX. Among large-cap Canadian companies, it has one of the highest dividend yields, now at almost 7%. Enbridge is positioned as a progressive energy leader that supports the worldwide transition to greener energy sources thanks to its strategic investments in renewable energy projects.
