The stock market is unpredictable. Many times, you buy a stock and hold it for years, hoping for a turnaround. And all the stock does is fall, fall, and fall. However, some stocks that have been in a free fall for years could show a rapid recovery when the business environment is conducive to growth.
Identifying such stocks is easy. They are companies that have been doing business for decades, navigating the market’s ups and downs. The market and economic challenges have helped them strengthen their fundamentals to withstand the downturns and make the most of growth opportunities. You can see these companies stand strong and grow 10 years from now.
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Three no-brainer stocks to buy under $50
You need not burn a hole in your pocket to invest in such value stocks. Some of these no-brainer stocks are available under $50. You could even buy one stock every week if you don’t have hundreds of dollars for investment. It could help you take advantage of dollar-cost averaging, especially in the down cycle.
Telus stock
Now two stocks trade under the name Telus. One is Telus Corporation (TSX: T), the telecom stock. It is trading around $20 per share and has an 8.2% annual dividend yield. Another is Telus Digital, which is a spin-off information technology business of Telus Corporation. However, Telus Digital does not give dividends and has not yet generated growth for its shareholders.
The stock worth buying under $20 is Telus Corporation as the telecom giant is a key beneficiary of the 5G revolution. It has increased its customer base by poaching Shaw Communications customers.
Telus stock has been in a free fall since April 2022 as the business environment was challenging for the telecom industry. The accelerating interest rate made the 5G capital spending expensive. While interest expenses rose, Telus cut its subscription prices to acquire more customers. The telecom regulator also forced Telus to share its 5G network with small competitors, putting the telco at a disadvantage.
However, Telus overcame these challenges and continued to pay and grow dividends. As the leverage and dividend payout ratios exceeded the target range, it began restructuring its operations to bring down the ratios to a manageable range. The telco has the potential to cross-sell various services as 5G services expand and increase its average revenue per user.
You could consider buying Telus stock anytime you have cash. T stock could earn you an 8% dividend and 35% growth when business conditions improve.
CT REIT
CT REIT (TSX: CRT.UN) is a no-brainer stock to buy the dip as its rental income remains unaffected by the real estate environment. Its major tenant is parent Canadian Tire, and the REIT acquires stores from its parent and maintains them. The unit price of the REIT fell 30% between April and October 2022 as rising interest rates pulled down property prices. Since then, the REIT has shown a tepid recovery as property prices are yet to recover.
However, the fundamentals are strong, with a 75% dividend payout ratio and negligible mortgage. You could continue to enjoy a 6.5% annual dividend yield, and 3% growth in the dividend per share every July. The REIT is trading at a unit price of $14.26, making it a buy without digging into your expenses.
HIVE Digital Technologies
While the above two stocks give dividends, HIVE Digital Technologies (TSXV:HIVE) can give you significant growth. The stock is range-bound trading between $4-$8, making it a buy near the lower range and a sell near the higher range. The pioneering Bitcoin miner benefits from an increase in Bitcoin prices as the value of its Bitcoin inventory goes up. It has been diversifying its revenue streams by offering high-performance computing (HPC) on the cloud capacity.
Its HPC revenue grew to $1.8 billion in the quarter ended September 30, 2024, from $253 million a year ago. If this growth continues, seasonality in Hive’s stock price could partially stabilize.
With Donald Trump becoming the next U.S. president, Bitcoin’s future looks bright, creating a conducive environment for Hive’s stock to grow.
