Investors seeking growth, income and value in this current market certainly have plenty of factors to consider. For one, are these factors sustainable? And in this current market, which is filled with macro uncertainty, how will these companies continue to rally (i.e., are there sustainable catalysts on the horizon)?
These two TSX stocks are among the best options for investors looking for this mix. Here’s why I think these companies are top buys in February for the long term.
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Barrick Gold
Barrick Gold (TSX: ABX) is one of the largest producers of copper and gold in the world and has long been a mainstay of the mining sector. Barrick’s broad portfolio, which operates across five continents, helps reduce operational and geopolitical risks. The company’s strong financial results for 2023, which included sales of over $11 billion, demonstrate its capacity to prosper in volatile commodities markets.
Barrick’s emphasis on expansion through project development and exploration is what makes it so appealing right now. For example, the expansion of the Lumwana Super Pit in Zambia and the further development of the Reko Diq project in Pakistan are anticipated to greatly increase production capacity in the upcoming years. Furthermore, thanks to its dedication to cost control and operational efficiency, Barrick is well-positioned to profit from higher gold prices in the face of global economic instability.
Barrick provides a solid balance sheet with reasonable debt levels, a steady dividend yield (already above 2.5%), and the possibility of capital growth if gold prices rise for value-seeking investors. Gold continues to be a solid hedge as long as inflationary pressures are present, and Barrick is well-positioned to profit from this development.
Manulife Financial
Manulife Financial (TSX: MFC) is a well-known worldwide supplier of financial services, including retirement plans, asset management, and life insurance. The company’s global reach is broad, encompassing high-growth areas in Asia, the U.S., and Canada. Manulife has benefited from this regional diversification, which has allowed it to capitalize on the growing demand for financial goods in emerging economies.
Another feature of Manulife is its flexibility in response to changes in regulations. Early 2023 saw the adoption of IFRS 17 and IFRS 9 accounting standards, which strengthened its financial transparency and enhanced its capacity for risk assessment. With core earnings of $1.58 billion in the third quarter of 2024, the corporation also posted an impressive performance in the previous quarters. This illustrates its capacity to sustain consistent growth in the face of a difficult macroeconomic climate.
Investors who want steady income will be drawn to Manulife. Strong cash flows and a sound capital position support the company’s appealing dividend yield of more than 5%. Manulife is a fantastic option for income-oriented investors since it has the flexibility to maintain and potentially raise its dividend due to its low payout ratio in comparison to its peers.
