If you’re looking for value in the new year, it might be worth considering the broader basket of names, especially the ones that underperformed the TSX Index in the past year. Of course, the big play would be to bet on cheap shares of companies that might have what it takes to make up for lost time.
In this piece, we’ll check out a few names that I think could be great holdings to stash away for the long run (at least two decades), preferably in an RRSP (Registered Retirement Savings Plan) or a TFSA (Tax-Free Savings Account), if you’ve still got the contribution room.
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Brookfield Corp.
Shares of Brookfield Corp. (TSX:BN) haven’t been doing terribly in recent months, but compared to the TSX Index, the name has certainly dragged. But for long-term thinkers, such modest action could be more of an opportunity to buy than to rotate into hotter momentum plays. In the past year, shares have risen just over 13%. It’s trailed the TSX Index, but probably not for long, especially as the firm looks to capitalize on lower-risk opportunities within the theme of AI.
Of course, AI data centres are going to be power hungry, and with the firm teaming up on various AI infrastructure initiatives (and let’s not forget about its renewable power assets), I view BN stock as perhaps one of the lower-risk ways to ride the AI wave higher over the next five years. Of course, the latest Qatar partnership on a $20 billion AI venture has been the talk of the town in recent weeks. It’s a big deal, and one that should excite shareholders.
Whenever you can bet on potentially revolutionary themes with less downside risk, investors should be ready and willing to punch a ticket, preferably on a dip. With a 5% dip in the stock already, perhaps it’s time to think about averaging into a starter position.
TC Energy
TC Energy (TSX:TRP) might not be the go-to pipeline stock that Canadians go to for passive income these days. With a 4.5% dividend yield, though, the midstream energy firm is certainly also worth considering, especially if you’ve got an appetite for value and growth. In the past year, shares have risen just north of 13%. Not bad, but certainly not enough to stay ahead of the TSX Index.
Personally, I think TRP stock is a breakout candidate for the new year, especially considering the multi-month consolidation channel and increased enthusiasm about the outlook looking into 2028. Could TC Energy have what it takes to be one of Canada’s next big dividend-growth superstars? Possibly.
Either way, I certainly wouldn’t neglect the $80 billion pipeline as it looks to chip away at its debt while also moving ahead with longer-term growth projects, which should provide more than enough fuel to keep the dividend raises coming over the next three to four years. With a good amount of predictability going all the way into 2028, perhaps investors seeking yield and dividend growth may wish to consider the name while it’s going for a fair 21.5 times trailing price to earnings.
