The market is full of great long-term options for investors to consider. Among those are some truly great, if not dirt cheap stocks to buy, even with just $100 to spare.
Here’s a look at two prime candidates for investors to consider, which can only be defined as dirt cheap stocks.
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Have you considered Telus lately?
It would be hard to find a stock with a more compelling case for dirt cheap stocks to buy than Telus (TSX: T) right now.
Telus is one of Canada’s big telecom stocks, offering subscription-based services to customers across Canada. That subscription revenue provides Telus with a recurring, stable revenue stream that lets the telecom invest in growth and pay out a handsome dividend.
In the most recent quarter, the telecom posted a 2% gain in operating revenue, which came in at $5.1 billion. The company also managed to keep churn under 1% for the 12th consecutive year, while adding 198,000 new customers.
Turning to growth, Telus is focusing on two areas.
Earlier this year, Telus announced a whopping $70 billion investment over the next several years. That investment will be used to improve its network infrastructure and operations across the country. That includes both fibre and 5G network enhancements.
The other area is Telus’ growing digital services arm. That group, known as Telus Digital, provides services to businesses in specific niche markets such as healthcare and agriculture. This provides yet another growing revenue stream for the telecom.
Turning to income, Telus really shines as one of the dirt cheap stocks to buy.
As of the time of writing, Telus offers an insane 7.3% yield. Not only does this make Telus one of the better-paying dividends on the market, but it also translates into an incredible opportunity for long-term investors.
That’s because investing just $5,000 into Telus will earn a dividend income sufficient to generate over a dozen shares through reinvestments each year.
Throw in the fact that Telus has provided better than annual increases to that dividend for two decades, and you have a must-have stock for any portfolio.
All aboard! The growth train is leaving
Another one of the dirt cheap stocks for investors to consider right now is Canadian National Railway (TSX: CNR). Canadian National is one of the largest railways on the continent, with a vast network that stretches from coast to coast and down the U.S. Midwest to the Gulf.
The railway hauls a variety of goods across that network. In fact, over $250 billion worth of goods traverse that network each year. Those goods can be anything from automotive components and raw materials to crude, precious metals, and wheat.
That vast network and the sheer importance of the goods that Canadian National hauls make the stock one of the most defensive picks on the market.
And despite that broad defensive appeal, as of the time of writing, Canadian National’s stock price trades near its 52-week low. In fact, the stock is down a whopping 16% over the trailing 12-month period.
During that same time, the railway’s reliable quarterly dividend has grown to an appetizing 2.8%. Adding to that appeal, prospective investors should note that Canadian National has provided annual bumps to that dividend for nearly three decades without fail.
In other words, Canadian National, with its reliable business model, wide defensive moat, and juicy yield is one of the dirt cheap stocks that belongs in your portfolio
Will you buy these dirt cheap stocks?
No stock is without risk, and that applies even to defensive picks like Canadian National and Telus. Fortunately, both the stocks mentioned above not only offer a defensive moat, but also appetizing dividends and growth potential.
In other words, they may be a pair of dirt cheap stocks now, but they won’t be forever.
In my opinion, one or both of these dirt cheap stocks should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch your portfolio grow.
