Market Opportunity Comes in the Strangest Places
In case you haven’t noticed the market lately, it’s been a roller-coaster ride that has dropped considerably. In fact, over the course of the past month, the market has tanked by over 8%. Fortunately, it’s not all bad news. If anything, there’s an opportunity for long-term investors to buy great stocks at a discount right now.
On sale: Rogers Communications
Rogers Communications (TSX:RCI.B)(NYSE:RCI) is the first great market opportunity that investors should jump on. Over the course of the past month, Rogers has seen its stock dip by over 12%. By way of comparison, Rogers’s big telecom peers have only managed to dip half as much.
What makes Rogers a great market opportunity for investors? Rogers runs a reliable telecom business that generates a recurring revenue stream from multiple segments. A deal to acquire one of Rogers’s smaller competitors is steadily marching towards completion, albeit with some concerns from the competition bureau.
While that does add some volatility into the mix, Rogers remains a great long-term investment that is on sale right now. Throw in Rogers’s quarterly dividend, and you have a compelling income generator as well.
Trading flat is a good thing for this company
Canadian Utilities (TSX:CU) is one of a handful of companies that isn’t in the red just yet. That being said, the utility company is trading near flat over the past month, despite its stellar appeal.
In short, Canadian Utilities benefits from an incredibly stable business model that allows it to generate a handsome revenue stream. That revenue stream also means that Canadian Utilities can continue to provide investors with a juicy quarterly dividend.
The yield on that dividend currently works out to 4.58%, making it one of the better-paying stable options on the market. Canadian Utilities is also the only Dividend King in Canada — a feat the company hit this year when it completed 50 consecutive years of annual dividend increases.
In short, Canadian Utilities just screams long-term potential, and the current market opportunity has the stock price barely sitting in the black.
The market opportunity here is off the charts
It would be nearly impossible to generate a list of great investments and not mention at least one of Canada’s big banks. Today, the bank that investors should be looking closely at is Toronto-Dominion Bank (TSX:TD)(NYSE:TD).
Canada’s second-largest lender has amassed an impressive domestic portfolio that generates a stable and growing revenue stream. In the years following the Great Recession, TD expanded heavily into the U.S. market. TD’s U.S. segment comprises over 1,200 branches along the east coast stretching from Maine to Florida.
Impressive, without a doubt. But TD isn’t done expanding. The bank announced earlier this year a US$14.4 billion deal to acquire Tennessee-based First Horizons. The deal is going to add over 400 branches across a dozen states to TD’s portfolio, elevating the bank to one of the top six banks in the U.S. market.
Going by the incredible growth TD saw after its first incursion into the U.S. market, it’s hard not to see this as a huge market opportunity. If that isn’t enough, TD also offers investors a handsome quarterly dividend that works out to a yield of 3.85%.
Despite all that potential, TD is trading down near 5% over the past month and down a whopping 13% over the past three-month period.
No investment is without risk, and that includes investing during times of volatility such as the present. Fortunately, the companies mentioned here are well-established market leaders, offering solid growth, stable revenue, and juicy dividends.
In my opinion, one or all the stocks mentioned above should form part of any well-diversified portfolio.
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* Returns as of 4/14/22
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Fool contributor Demetris Afxentiou has positions in The Toronto-Dominion Bank. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.