BIPC - Got $5000? Buy and Hold These 3 Value Stocks for Years.
2024-02-26 05:15:00 ET
The stock market has been on an impressive run over the past year. The S&P 500 is up 27%, while the tech-heavy Nasdaq 100 has surged nearly 50%. That rally has most stocks trading at lofty valuations. The S&P 500 's price-to-earnings ratio is over 22, while the Nasdaq 100 's is above 30.
Despite those blistering rallies, there are still some compelling values. Kinder Morgan (NYSE: KMI) , Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) , and W. P. Carey (NYSE: WPC) stand out as great value stocks to buy and hold right now. They could turn a $5,000 investment into an attractive and growing income stream. On top of that, they have compelling appreciation potential as they increase their cash flows and the market starts valuing these high-quality companies higher.
Kinder Morgan generates very stable cash flow backed by long-term contracts and government-regulated rate structures. The natural gas pipeline giant expects to produce nearly $5.1 billion, or $2.26 per share, of distributable cash flow (DCF) this year. With shares currently trading at around $17.25 apiece, it sells for 7.6 times its cash flow. That's absurdly cheap.
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Got $5,000? Buy and Hold These 3 Value Stocks for Years.