ENB:CC - 2 Magnificent Stocks to Buy That Are Near 52-Week Lows
2024-02-22 16:50:00 ET
The market is full of great long-term opportunities for investors. Some of those great opportunities are magnificent stocks that not only boast growth and income-generating potential but also trade at discounted levels.
Here are two of those magnificent stocks to consider that still hover above their 52-week lows.
Energy (and income) can come from many sources
Enbridge ( TSX:ENB ) is a name that most investors are familiar with. The energy infrastructure behemoth has its tentacles in multiple areas of the market, from pipelines and utilities to renewables.
That level of diversification makes Enbridge a great option, particularly when factoring in the defensive appeal of some of those segments.
Enbridge is best known for its pipeline business, and for good reason, too. The segment transports staggering amounts of crude and natural gas daily. Specifically, Enbridge transports nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
That factor alone makes Enbridge one of the most defensive options on the market. But there’s still more to love.
Enbridge also operates the largest natural gas utility thanks to the acquisition of three U.S.-based utilities last year. Utilities generate a recurring and stable revenue stream backed by long-term regulated contracts.
Turning to renewables, Enbridge operates over 40 renewable energy facilities located in Europe and North America. These, too, generate a recurring revenue stream backed by long-term contracts. The segment boasts a net generating capacity of over 2,370 megawatts, which is enough to power 1.1 million homes.
Perhaps best of all is Enbridge’s quarterly dividend . The company currently offers an insane yield of 7.79%, making it one of the best-paying yields on the market. Oh, and let’s not forget that Enbridge has provided investors with annual bumps to that dividend for nearly three decades.
Enbridge plans to continue that tradition and currently trades down nearly 9% over the trailing 12-month period. The stock trades closer to its 52-week, making it one of the discounted magnificent stocks to buy now.
Here’s another defensive gem to consider
Another great stock to consider buying right now is BCE ( TSX:BCE ). By some metrics, BCE is Canada’s largest telecom. It also operates a massive media segment comprising TV and radio outlets across the country.
That media segment has garnered significant attention of late as BCE announced a series of layoffs during its recent earnings report. BCE noted the layoffs, which include dozens of radio stations, are part of a larger transition to it becoming a more digital media-focused operation.
As of the time of writing, BCE trades a dollar off its 52-week low of $49.57. In fact, over the trailing 12-month period, the stock is down a whopping 16%.
When it comes to evaluating BCE as one of the magnificent stocks to buy right now, prospective investors should be looking at two things.
First, BCE is a long-term option. The company operates a stable backbone through its core subscription business, which continues to see strong growth. Any shorter-term market volatility brought on by changes and interest rates can be minimized over that longer period.
Second, while the stock trades at a hugely discounted level, it offers one of the best dividends on the market. As of the time of writing, BCE offers a juicy quarterly dividend with a yield of 7.79%.
Prospective investors should note that BCE has been paying out dividends for well over a century and has provided annual upticks without fail for over a decade.
Magnificent stocks are not without some risk
No stock, even the most defensive, is without some risk. Fortunately, both BCE and Enbridge offer investors both defensive appeal and long-term growth potential.
Add in the lucrative yield on offer, and you have two magnificent stocks which should, in my opinion, be core holdings in any well-diversified portfolio .
The post 2 Magnificent Stocks to Buy That Are Near 52-Week Lows appeared first on The Motley Fool Canada .
Fool contributor Demetris Afxentiou has positions in BCE and Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy .
2024