If you’re sitting on an extra $1,000 that you won’t need for the next few years, now is an excellent time to put that cash to work. Some Canadian stocks have undergone a reset in valuation this year, giving long-term investors the opportunity to pick up solid businesses at attractive prices. Whether your goal is stability, income, or growth, the following three stocks stand out as some of the most compelling buys in the market today.
1. CAPREIT: A stable dividend play in a tight housing market
Canadian Apartment Properties REIT (TSX:CAR.UN), or CAPREIT, has long been considered one of Canada’s most resilient residential landlords. Yet its units have slipped roughly 17% from their 52-week high, weighed down by investor concerns about Ontario’s rent controls — significant because the province accounts for about 41% of CAPREIT’s portfolio.
Despite the negative sentiment, the business itself remains impressively strong. Year to date, CAPREIT reported a same-property occupancy rate of 97.8% across its Canadian residential properties, while average monthly rent grew 4.4% to $1,709 by the end of the third quarter. More than 75% of its suites still rent for under $2,000 per month, offering a solid balance of affordability and cash flow stability.
The broader housing environment continues to favour rental providers. In major cities such as Toronto, Vancouver, and Calgary, the gap between the cost of owning and renting remains wide, making CAPREIT’s value proposition even stronger.
Management also appears confident in the REIT’s intrinsic value, having repurchased $200 million worth of units this year at an average of roughly $43 each. With the units trading under $39 at writing, investors can lock in a nearly 4% yield alongside an analyst-projected 20% discount to fair value — implying potential upside of roughly 25%.
2. Brookfield Asset Management: A global giant at a rare discount
Brookfield Asset Management (TSX:BAM) is one of Canada’s premier global asset managers, yet its shares have dropped about 24% from their 52-week high. For long-term investors, that downturn has created a rare opportunity to scoop up this blue-chip compounder at an unusually appealing valuation.
BAM already oversees more than US$1 trillion in assets spanning infrastructure, renewable energy, private equity, real estate, and credit. This scale gives it enormous competitive advantages — and importantly, it expects to continue growing its assets under management at a double-digit rate.
That growth fuels a rapidly rising dividend as well. The stock currently yields nearly 3.6%, one of the highest starting yields BAM has offered in recent years, with another dividend increase expected in February. For income investors and growth-oriented investors alike, BAM offers both stability and compounding potential.
3. goeasy: Higher risk, higher reward potential
Among these three options, goeasy (TSX:GSY) carries the most risk — but it also may offer the greatest return potential. The company operates in the subprime lending space, where a weaker economy can lead to higher loan losses. However, goeasy has built a long track record of profitable growth through economic cycles by diversifying across multiple lending categories: personal loans, home equity loans, automotive financing, leasing solutions, and more.
While the company charges higher interest rates to compensate for borrower risk, it also focuses on helping customers improve their credit scores over time.
Today, goeasy’s stock trades about 44% below its 52-week high and at a 36% discount to its long-term normal valuation — suggesting potential upside of approximately 57%. At around $120 per share, investors also benefit from a substantial 4.9% dividend yield.
Investor takeaway
For investors with $1,000 ready to deploy, these three Canadian stocks offer a nice mix of stability, income, and growth potential. CAPREIT provides dependable rental-driven cash flow in a tight housing market. Brookfield Asset Management delivers global scale and consistent dividend growth at a discounted valuation, while goeasy offers high-reward upside for those comfortable with greater risk. Together, they form a diversified trio well-suited for long-term wealth creation.
