If you could start your investment journey over again, what would you do differently? Buy that insane tech stock before it takes off? Invest in some dividend stocks and forget about your portfolio for a decade? Or maybe consider some Canadian value stocks that can provide both growth and income?
If I had a cool $15,000 to augment my portfolio (or build a new one), I would start with these stellar Canadian value stocks as a foundation.
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Start with a reliable income stream
The first of the Canadian value stocks that can provide both income and growth is Canadian Natural Resources (TSX: CNQ). Canadian Natural Resources is a leader in the energy sector. The company boasts a portfolio of oil and gas assets that help generate a reliable and growing source of revenue.
That growth includes the whopping US$6.5 billion deal to acquire a 20% stake in the Athabasca Oil Sands project last year. That deal added over 62,000 new barrels of synthetic crude to Canadian National Resources’ daily production.
Turning to dividends, that reliable revenue stream allows Canadian Natural Resources to pay out a very handsome dividend. As of the time of writing, the quarterly dividend on offer pays an attractive 5.2%.
Adding to that appeal is the fact that the company has provided investors with 25 consecutive years of annual increases to that dividend.
In other words, this is one of the must-have Canadian value stocks to buy now and forget about for a decade.
Consider buying this financial heavyweight
Another great option for investors looking for Canadian value stocks to buy right now is Manulife Financial (TSX: MFC). Manulife is the largest insurer in Canada and one of the largest insurers on the planet.
Manulife’s saturated grip over the Canadian market has led the company to turn to foreign markets for growth in recent years. That exposure to foreign markets, specifically Asia, makes Manulife one of the must-have Canadian value stocks for any portfolio.
That stellar growth has helped Manulife to consistently report strong earnings and beat estimates. By way of example, in the most recent quarter, Manulife reported earnings of $0.88 per share, reflecting an 8% increase over the prior period.
Those healthy results help Manulife pay out one of the best dividends on the market. As of the time of writing, Manulife pays out a quarterly dividend with a yield of 3.9%.
Top it off with a retail giant
The third of the Canadian value stocks to buy now is Canadian Tire Corporation (TSX: CTC.A). Canadian Tire is one of the largest retailers in Canada, boasting a diverse business model that spans multiple segments.
Specifically, Canadian Tire has its tentacles in real estate and financial services segments outside of its core retail business. That retail business is well-diversified, too.
Canadian Tire operates multiple retail banners that include clothing, sportswear, automotive parts and party supplies, to name just a few. And that’s all in addition to its core namesake brand.
Turning to income, Canadian Tire offers investors a juicy 4.7% yield.
In other words, Canadian Tire is a well-diversified defensive retailer appealing to both income and growth-seeking investors.
Stacking up these Canadian Value stocks in your portfolio
No stock, even the most defensive, is without some risk. Fortunately, the trio of stocks mentioned above can provide investors with some defensive appeal in addition to their growth and income-earning capabilities.
Here’s how I would allocate that $15,000 investment in those three Canadian value stocks.
| Company | Recent Price | Amount Invested | No. of Shares | Dividend | Total Payout |
| Canadian Natural Resources | $44.82 | $6,000 | 133 | $2.35 | $312.55 |
| Manulife Financial | $45.46 | $5,000 | 109 | $1.76 | $191.84 |
| Canadian Tire Corporation | $150.35 | $4,000 | 26 | $7.10 | $184.60 |
While you can’t retire on an income of under $700, it is more than enough to generate a few shares by reinvesting those dividends. This allows your future income to passively grow over a longer term.
