Have you thought about what you would do differently if you could go back and change your historical investments? While we’d all like to go back and buy Bitcoin at $1, that’s just not possible. Fortunately, there are several great options to consider at present. You might even call them cheap stocks to buy.
Here’s a look at two of those cheap stocks on the market right now and why they belong in your portfolio.
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It doesn’t sound cheap, but it really is
One of the dirt cheap stocks for investors to consider right now (and almost any time) is Fortis (TSX: FTS). Fortis is a utility stock. In fact, Fortis is one of the largest utility stocks on the market.
The utility has multiple operating regions that include parts of Canada, the U.S. and the Caribbean. Those segments generate ample revenue for Fortis to invest in growth initiatives while paying one of the most stable dividends on the market.
Fortis’ growth is funded from a massive $26 billion capital plan. That plan includes transitioning facilities to newer, cleaner, renewable technologies and upgrading other existing facilities.
Turning to dividends, Fortis offers investors a quarterly dividend with a respectable 3.5% yield. Adding to that appeal is the fact that Fortis has provided investors with annual bumps to that dividend for an incredible 51 consecutive years.
A $5,000 investment in Fortis could generate additional shares annually through dividend reinvestment alone. This makes Fortis a superb pick for buy-and-hold long-term investors.
As of the time of writing, Fortis trades just under $70. That’s about $3 off its 52-week high. But what makes Fortis one of the cheap stocks to buy?
Factoring in that growth, the stable revenue, and the growing dividend are key points. But what really pushes Fortis to the next level is its defensive appeal, and that Fortis trades at a P/E of 20.6.
Put that all together, and you have a defensive, income-producing stock that is just too hard to ignore at current levels. You might even call Fortis one of the cheap stocks on the market right now.
Here’s another option to consider
If you thought Fortis was one of the cheap stocks, then prepare to be shocked. Suncor (TSX: SU) is the other stock that can be referred to as one of the cheap stocks on the market right now.
For those unfamiliar with the company, Suncor is synonymous with integrated energy in Canada. In fact, Suncor is not just well-known in the oil sands but also operates a vertically integrated business in the oil sector.
That includes every step along the way from extraction to refining, distribution and even retail and gas pumping. That huge scope of business allows Suncor to control costs and margins, both upstream and downstream.
In other words, Suncor runs an incredibly efficient business that churns out massive profits, and by extension, juicy dividends.
That dividend is a quarterly payout, which currently works out to an impressive yield of 4.1%. Adding to that appeal is the fact that Suncor has provided investors with annual upticks to that dividend for several years.
Prospective investors considering Suncor should also note that the next ex-dividend date is coming up in November.
As of the time of writing, Suncor trades at an attractive P/E of just 12.3, making it a top option for any portfolio.
Final thoughts on these cheap stocks
Both Suncor and Fortis offer investors a reliable income stream that continues to show strong growth and massive defensive appeal. That defensive appeal provides an often-ignored hedge against increasing market volatility.
Throw in decades of stable, if not increasing dividends, and you have some of the best stocks for any well-diversified portfolio.
