With tariff turbulence sending the S&P 500 into a correction, investors may feel like postponing any big buys on the dip, at least until there’s more clarity on the tariff response and the coast clear on the rising recession risks. Of course, by waiting until the most worrisome risks are resolved, we may very well be back to all-time highs, and the opportunity to buy the dip may have gone. Indeed, that’s the nature of dealing with corrections.
Sometimes, you have to find something to buy, even if you’re held back just a bit by fear and emotion. Indeed, the new move on tariffs could make or break the economy. And though Friday’s session saw some relief, investors should be ready to ride out what could be yet another turbulent month of back-and-forth on tariffs and all the sort. In any case, here are three bargains that could be worth picking up as they fluctuate wildly on tariff-induced fear and panic-selling.
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Magna International
Magna International (TSX: MG) is an auto-part maker that could feel the full force of the tariffs. Undoubtedly, if you’re looking to get rid of at-risk names from a trade war, MG shares would be atop the list of names to potentially pare. That said, I think it’s too late to be a seller. Not when tariffs and recession fears have been priced in over the past few months.
Year to date, the stock is down 12%, putting it off 57% from its all-time highs not seen since early 2021. I think the latest dip is a fantastic long-term buying opportunity for those willing to average down on every new tariff development that puts a further dent in the stock.
At the end of the day, Magna is a well-run auto-part maker that will rise again as the next generation of autos (think autonomous and electric) hits the roads in greater numbers. Sure, a recession could hold back the auto industry for some number of years. But for those with patience, MG stock is a deep-value option that will pay you to wait. The 5.5% dividend yield is well-covered and is worth collecting as you wait things out.
Nutrien
Nutrien (TSX: NTR) is another stock that’s sure to be a major mover on any given day based on tariff news. Undoubtedly, tariffs imposed on potash and other agricultural fertilizers going from Canada to the U.S. could really hit American farmers. Arguably, Nutrien faces the most risk among Canada’s major firms, at least according to some.
Though the stock hasn’t been all too rattled in the past few weeks, rising around 12% year to date, I think the beaten-down dividend juggernaut is a great value buy while its yield is close to 4.3%. Sure, tariffs will cause more volatility, but the proven dividend grower is worth sticking with through the turbulence en route to some sort of normalized, hopefully tariff-free environment — whenever that may be.
At just 13 times forward price to earnings, Nutrien stock stands out as one of the brightest high-yielding value gems this March.
