IFC:CC - 3 No-Brainer Stocks I'd Buy Right Now Without Hesitation
2024-06-15 09:00:00 ET
No-brainer stocks are present in virtually every market. Some of them are blue-chip stocks with decent return potential (dividend, growth, or both). In contrast, others are “seasonal” no-brainer stocks that might offer a combination of price and return potential (and other factors), making them incredibly appealing for a limited time. Here are three such stocks that you might consider looking into.
An alternative financial stock
Despite being an energy-heavy economy, the financial sector in Canada is the juggernaut of the stock market. Banks dominate this sector, but companies like goeasy ( TSX:GSY ) have carved up an excellent market for themselves and are considered “giants” in their own right. For goeasy, that niche market was people with bad/weak credit.
The company offers them personal and home equity loans. In its 33 years of business, goeasy has served over 1.3 million customers and given out loans of about $12.8 billion.
Goeasy has experienced solid organic growth over the years, and the stock has reflected this growth, albeit in a less linear way. Still, even when we take into account the massive slump the company is still reeling from, the returns are impressive.
It returned 268% to its investors in the last five years via capital appreciation alone and 342% if we also threw in the dividends. The company is currently bullish, but with a decent yield and modest valuation, it may be an intelligent pick.
A bank stock
When it comes to bank stocks , you can buy them for an attractive yield. Bank of Nova Scotia ( TSX:BNS ) is easily the top pick in most markets, and the current one is no exception. The stock is trading at a discount of 30%, and it has beefed up the yield to 6.5%, which is an impressive number for an old and trusted aristocrat like this bank.
One slightly troubling aspect of the stock right now is that it hasn’t grown its payouts for about six quarters now, which is not in line with its general dividend-growth history. However, it may still retain its aristocratic status if it raises the dividends for the last distribution of this year.
As for the discount, it’s beneficial for yield and may also help investors enjoy decent capital appreciation once the stock starts recovering.
An insurance company
Intact Financial ( TSX:IFC ) is among the handful of insurance giants based in Canada. This one focuses on Property and Casualty (P&C) insurance. It’s a clear leader in this insurance domain in Canada and one of the leaders in the U.K. and Ireland, its largest secondary markets.
Even though a geographically diversified target market is a fundamental strength, it’s not the only reason to consider this stock. It’s also a Dividend Aristocrat with a solid track record — 18 consecutive years of dividend growth, but even that’s not its primary appeal.
That crown falls on its capital-appreciation potential, which is quite impressive, especially for a Canadian insurance giant. The stock has been going up almost consistently for over a decade and has risen by 89% in the last five years alone.
Foolish takeaway
The three stocks can be considered no-brainers for their fundamental strengths and current appeal, whether due to a discount or growth momentum. You may consider adding them to your portfolio or at least keeping an eye on them and buying them at an even more appropriate time.
The post 3 No-Brainer Stocks I’d Buy Right Now Without Hesitation appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and Intact Financial. The Motley Fool has a disclosure policy .
2024