When it comes to long-term investing, plenty of stocks offer high potential. You can buy Canadian value stocks that are cheap, growth stocks that can gain value rapidly, or dividend stocks that generate significant passive income. However, without a doubt, the best investments to make are stocks that offer all three.
These are what you’d call triple-threat stocks. They’re companies that are well-established enough to pay a solid dividend, but also high-quality enough to still have considerable growth potential.
And when you buy these stocks in the right environment, like the uncertain and highly volatile one we’re in today, you can often scoop them up while they’re still trading undervalued.
So, with that in mind, if you’ve got cash you’re looking to invest today, here are three top Canadian value stocks that generate considerable passive income in addition to offering long-term growth potential.
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One of the best long-term investments Canadian investors can make
If you’ve got cash to invest and are looking for triple-threat stocks in the current economic landscape, there’s no question that Brookfield Infrastructure (TSX:BIP.UN) is one of the best long-term value stocks to buy now.
Brookfield owns a massive and well-diversified portfolio of essential infrastructure assets that operate all over the world.
Therefore, because it operates in a defensive and highly reliable industry, the fact that it’s still trading more than 20% below its 52-week high makes it one of the top Canadian value stocks to buy now.
While it’s not trading at a massive discount, this is the kind of high-quality business that rarely gets cheap. And considering the current economic environment, where investors are searching for defensive, income-generating investments, it’s surprising Brookfield hasn’t already begun to recover.
Right now, it offers a dividend yield of roughly 6.4% and has a long history of both growing its operations and steadily increasing its distribution each year.
And going forward, even with the uncertainty about the global economy, analysts still estimate it will grow its funds from operations per share by roughly 9% each of the next two years.
So, if you’re looking for top Canadian value stocks to buy now, Brookfield is undoubtedly one of the best.
One of the best Canadian value stocks to buy now
In addition to Brookfield, another high-quality Canadian value stock to buy now is goeasy (TSX:GSY). goeasy is a specialty finance stock that provides non-prime Canadians with access to personal loans and other financial services.
It’s been one of the highest-growth stocks in Canada over the last decade, consistently expanding its loan portfolio, growing its revenue, and improving its margins. At the same time, as its earnings have increased drastically, so too has the cash it returns to shareholders.
Therefore, goeasy doesn’t just offer impressive capital gains potential. It also pays a meaningful dividend, which it’s increased every year for the past decade. In fact, it’s nearly tripled its annual dividend over the last five years alone.
Today, with the Canadian value stock trading cheaply, that dividend yield has climbed to roughly 3.7%, a significant yield for such a high-potential growth stock.
So, while it continues to execute well and grow its operations, goeasy is easily one of the best Canadian value stocks you can buy right now for both growth and income.
A top retail stock
Lastly, Canadian Tire (TSX:CTC.A) may not have quite the same growth potential as a stock like goeasy, but what it lacks in explosive upside, it makes up for in reliability and income. With a dividend yield of roughly 4.8% today, it’s one of the most attractive and stable retailers you can add to your portfolio.
As one of the most well-known brands in the country, Canadian Tire has a long runway of steady growth ahead of it. Plus, it has one of the strongest loyalty programs in Canada, helping it to retain customers and drive repeat business. In addition, it consistently uses technology to drive growth and improve its operations.
Furthermore, with many Canadians looking to support domestic businesses as trade tensions pick up, Canadian Tire is one of the few national brands that could directly benefit from the growing “Buy Canadian” movement.
So, if you’re looking for top value stocks to buy now, Canadian Tire is certainly one of the best.
