I talk a lot about long-term investing being one of the best ways to create long-term growth. And no, I’m not going to suddenly change my mind. I still hold this opinion true. However, I don’t necessarily think that investing long-term means you must choose an older company.

There are certainly strong TSX stocks out there to consider, so don’t ignore them. But also don’t ignore the younger ones that have so much promise. Today, I’m going to cover two that may have gone under your radar, or you’ve ignored long enough.

This is one I talk about a lot, and for good reason. NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a real estate investment trust (REIT) that focuses in on the healthcare industry. It invests in every type of healthcare property out there, and anything even remotely related. You need a parking garage next to a hospital? It’ll invest in that. How about a small doctor’s office? Yep, that too. And that large hospital down the road? Oh yes, that’s an investment as well.

This diversification within the stable healthcare industry is strong in its own right. However, NorthWest stock has made a massive effort to expand on a global scale. It now has assets in Netherlands, Australia, Canada, and recently the United States.

Because of this, you get an even more diverse revenue stream from this stable industry of TSX stocks. So while NorthWest stock hasn’t increased its dividend of $0.80 annually yet, I’d wager you’ll see that climb quickly in the next several years.

Yet, shares of NorthWest stock are down 38% in the last year, and trade at just 7.7 times earnings as of writing. So you can bring in a major yield of 8.91% by investing today.

Another stable industry to consider? The agriculture sector. And above them all, Nutrien (TSX:NTR) might prove to be the most promising. Yet, it was already a strong stock before it saw a major jump from the invasion of Ukraine by Russia leading to sanctions against Russian fertilizer. And just as strong of a drop a few months later as well.

The facts remain the same. Nutrien stock has brought this industry into the 21st century. It continues to acquire business after business in this fractured industry. It has online offerings that allowed farmers to continue to feed cities even during the pandemic. And it hasn’t slowed down in any way.

So while shares are down 25% in the last year, I would consider this a steal. It trades at just 5.1 times earnings as of writing, and provides a dividend yield at 2.84% as well.

So don’t listen to headlines when you’re choosing a stock. Look at the long-term prospects and projections of these companies and others. We need food. And we’re going to need more fertilizer to produce that food for a growing population that’s surpassed eight billion. Nutrien stock will therefore be one of the best TSX stocks to hold for that long-term growth, and you’ll be rewarded by buying today.

The post 2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years appeared first on The Motley Fool Canada.

Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account.

That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!

Here’s the best part: We’re giving this dividend pick away for FREE today.

Claim your free dividend stock pick
* Percentages as of 11/29/22

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Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust and Nutrien. The Motley Fool has a disclosure policy.

The recent reassurance from Janet Yellen, United States Secretary of the Treasury, to safeguard against further banking crises appears to have raised investors’ confidence, driving the equity markets higher. The S&P/TSX Composite Index has increased 1.4% in the last two days. Amid improving investors’ sentiments, you can buy three value stocks to earn superior returns this year.

Last week, Algonquin Power & Utilities (TSX:AQN) reported an impressive fourth-quarter performance, with its revenue and adjusted net earnings growing by 26% and 10%, respectively. Meanwhile, its adjusted earnings per share (EPS) for 2022 came in at US$0.69 at the higher end of the company’s guidance of US$0.66-US$0.69. Amid its solid performance, the company’s stock price has increased by 2.7% since its quarterly results. Despite the rise, it still trades at a substantial discount compared to its 52-week highs. Its valuation also looks attractive, with its NTM (next 12-month) price-to-sales and NTM price-to-earnings ratios standing at 1.9 and 13.4, respectively.

Amid the rising interest rates, AQN’s management has planned to lower its capital intensity and strengthen its balance sheet by selling assets worth around US$1 billion. The management expects to invest around US$3.6 billion this year, with US$3.3 billion in regulated utility growth and US$300 million in the renewable energy group. Currently, the company is constructing various wind and solar projects that are in different development stages. Further, AQN’s management has slashed its quarterly dividend by 40% amid the challenging environment. Despite the reductions, its yield for the next 12 months is a healthy 5.5%.

TC Energy (TSX:TRP) is an energy infrastructure company that operates a pipeline network transporting natural gas and crude oil across North America. Over the last few months, the company has been under pressure due to a substantial spillage at its Keystone Pipeline project and falling oil prices. The company has lost close to 30% of its stock value compared to its 52-week high. The steep correction has dragged its NTM price-to-earnings multiple down to an attractive 12.

After placing $5.8 billion worth of projects into service last year, TC Energy expects to put around $6 billion of projects into service this year. These new projects could boost the company’s financials this year. Meanwhile, the company’s management expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS to witness growth, despite lower contributions from the Keystone Pipeline project and higher interest expenses. Notably, the company has enhanced shareholders’ value by consistently increasing its dividend for the last 23 years. Amid the recent pullback, its dividend yield has risen to 7.11%.

My final pick is Telus (TSX:T), which has lost around 21.5% compared to its 52-week high. Given its capital-intensive business, investors are worried that rising interest rates would increase Telus’s interest expenses, thus impacting its margins. These concerns have dragged the company’s stock price down. Amid the pullback, the company trades at an attractive NTM price-to-sales multiple of 1.9.

Despite the near-term volatility, I am bullish on Telus, as the demand for telecommunication services is rising due to digitization. The company added over one million customers in 2022 thanks to its aggressive capital investments. Meanwhile, its revenue and adjusted EBITDA grew by 8.6% and 9.5%, respectively.

Further, Telus has strengthened its position in telehealthcare sectors by acquiring LifeWorks in September. The company has also raised its dividends uninterrupted for the last 19 years, while its forward yield stands at a juicy 5.17%.

Given their solid underlying businesses, stable cash flows, and attractive valuation, these three undervalued TSX stocks could deliver superior returns this year.

The post 3 Value Stocks for Superior Returns in 2023 appeared first on The Motley Fool Canada.

Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account.

That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!

Here’s the best part: We’re giving this dividend pick away for FREE today.

Claim your free dividend stock pick
* Percentages as of 11/29/22

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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

Canada’s most valuable tech company has experienced its most dramatic correction since going public. Since November 2021, Shopify (TSX:SHOP) has lost an astounding 73% of its market value. Unsurprisingly, investors have stopped comparing it to American e-commerce giant Amazon (NASDAQ:AMZN) since then.

However, Amazon hasn’t escaped the tech correction. The stock is also down 45% since November 2021. Both stocks are now sitting at multi-year lows. If you’re looking at a way to bet on the sustained growth of online retail, here’s how the two stocks compare now. 

Amazon’s annual revenue in 2022 was 9.4% higher than 2021. By comparison, Shopify’s growth rate was 23% over the same period. Put simply, Shopify’s sales are growing at more than double the rate of Amazon. However, much of this difference could be attributed to base effects. Shopify’s growth was on a base of just $4.3 billion while Amazon’s base of revenue in 2021 was a whopping US$469.8 billion. 

This is why Shopify’s growth rate is likely to be higher than Amazon’s for the foreseeable future. 

Both companies are competing for a piece of a very large pie. Global online retail is expected to be worth US$27.2 trillion by 2027. Amazon has already captured a significant portion of this, but Shopify has more room to grow. Shopify can grow via acquisitions of smaller rivals, new products, international expansion and by taking market share away from Amazon. Investors need to consider this when picking a growth stock for the future. 

Valuation is perhaps the biggest difference between Shopify and Amazon. Amazon is a well-established, mature company with a track record of free cash flows that stretch back decades. Amazon stock now trades at 1.9 times revenue per share.

By comparison, Shopify is cash flow negative and trades at a much higher valuation. The stock trades at 10.4 times revenue per share. At one point, during the peak of the bubble in 2021, the stock was trading at 60 times revenue per share. 

This higher valuation is a reflection of investor expectations. Shopify is expected to grow into its valuation over time. However, expectations are ephemeral, which makes Shopify stock extremely volatile. That’s why the stock dropped so much more than the rest of the tech sector. 

Amazon and Shopify are both excellent companies in a rapidly expanding industry. Over the next decade, more retail activity is expected to shift online. However, investors looking for a high-growth bet with more volatility could consider Shopify, while Amazon is better for investors seeking a low-risk, robust blue chip. 

The choice between these two stocks depends on your investment style.  

The post Better Buy: Shopify Stock or Amazon? appeared first on The Motley Fool Canada.

Before you consider Amazon, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in March 2023… and Amazon wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks
* Returns as of 3/7/23

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Vishesh Raisinghani has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Amazon.com. The Motley Fool has a disclosure policy.

The ongoing market rout has been brutal for TSX stocks. The broad market pressures significantly weighed on some names, shoving them much lower than their fair values. As a result, some of these stocks present an attractive investment proposition from a valuation standpoint.

Here are two of them.

Canada’s top consumer lender stock goeasy (TSX:GSY) has dropped 16% since last month. However, the correction has made it attractive for discerning investors. It is currently trading at a price-to-book value ratio of 2x, much lower than its historical average.

Considering its dominant position in Canada’s non-prime lending market and superior earnings growth, GSY deserves a premium valuation. However, recession fears and, especially pressures on the entire global banking system recently have weighed on it negatively. Nonetheless, as broader economic woes ease, GSY stock could soon recover.

goeasy is a $1.8 billion non-prime lender that charges higher interest rates to borrowers. Traditional financial institutions do not cater to non-prime borrowers due to regulatory constraints. This opens up a huge market for established consumer lenders like goeasy.

Its omnichannel presence and strong underwriting have played well over the years, facilitating stellar financial growth. Its net income has grown by 34% compounded annually in the last decade, a remarkable feat for a risky lending industry.

The lender’s long-term average return on equity comes to around 23%, representing strong profitability and growth. Interestingly, management has guided similar profitability at least through 2025.

GSY might continue to create shareholder value, driven by its strong loan originations and encouraging repayment trends. This makes GSY stock a fundamentally attractive bet for long-term investors.

TSX energy stocks have felt the full-blown impact of the recent market turmoil and have lost 16% so far in March. While energy names usually do see such disproportionate hits, the recent drop seems a tad overstressed.

Meanwhile, Canada’s largest energy company by market cap, Canadian Natural Resources (TSX:CNQ), is an appealing bet from a valuation standpoint.

CNQ stock is trading seven times its earnings and free cash flows. This multiple looks attractive for a Canadian energy giant like CNQ. It is trading at a premium compared to some TSX energy peers and indicates investors’ high expectations of growth from it.

Canadian Natural checks several boxes if you are looking for a fundamentally high-quality stock. Its top asset quality facilitates profitability even at lower oil prices. It has a strong balance sheet with manageable leverage and a sound liquidity position.

Moreover, CNQ offers reliable dividends with a juicy yield of 5.2%. Note that CNQ kept raising dividends during the pandemic as well, when peers suspended or trimmed. Management has raised shareholder payouts for the last 23 consecutive years, highlighting its earnings and dividend stability.  

Interestingly, Canadian Natural Resources has announced it will allocate 100% of its free cash flows to shareholder returns this year. This will likely involve aggressive buybacks and consistent dividend increases.

Oil and gas is one of the volatile sectors across markets. However, it has notably outperformed broader markets in the last three years. CNQ is a top bet in the sector due to its scale, strong execution, stable dividends, and balance sheet strength.

The post 2 TSX Value Stocks to Buy for Peace of Mind (and a Crazy-Good Deal) appeared first on The Motley Fool Canada.

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points.*

They just revealed what they believe are the 5 best stocks for investors to buy right now… and Canadian Natural Resources made the list — but there are 4 other stocks you may be overlooking.

See the 5 Stocks
* Returns as of 3/7/23

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The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.  Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

Canadian and global investors have been confronted with a banking crisis that has already claimed some significant names worldwide. Silicon Valley Bank, which served as the 16th-largest bank in the United States, buckled and then broke in the month of March. Signature Bank, another middle-of-the-pack U.S. bank, suffered a collapse in the days that followed. These smaller banks relied on investments in Treasury Bills and mortgage-backed securities in a low interest rate environment. Many investors have heard this story before during the 2007-2008 financial crisis.

Today, I want to discuss why I’m looking to snag two Canadian bank stocks that fall outside of the Big Six. Let’s jump in.

There are times when Canadian consumers bemoan the hardline fiscal conservativism of our financial institutions. Indeed, Canadian regulators continued to require stringent capital and liquidity buffers from our domestic banks. Those requirements remain the same for Canada’s smaller financial institutions.

The last big scare came in 2017 during a significant housing pullback that nearly resulted in the bankruptcy of Home Capital Group. This led regulators to beef up underwriting requirements and levy a foreign buyers’ tax in Ontario. The first regional bank I’m covering today also found itself embroiled in this mini crisis for Canada housing, as it was forced to correct a mortgage underwriting issue. That institution is Laurentian Bank (TSX:LB).

Laurentian Bank is a Montreal-based bank that is concentrated mainly in its home province of Quebec. Its shares have dropped 6.9% month over month as of close on March 21. The stock has now plunged 27% in the year-over-year period. Investors can see more details with the interactive price chart below.

This bank released its first-quarter (Q1) fiscal 2023 earnings on February 28, 2023. In Q1 2023, the bank delivered adjusted net income of $54.3 million, or $1.15 per diluted share — down 6% and 12%, respectively, compared to the first quarter of fiscal 2022. On the business front, Laurentian launch a “reimagined VISA experience.” This will allow the regional bank to expand its reach to customers across Canada.

Laurentian finished Q1 2023 with an excellent balance sheet, which means it is well suited to weather economic and financial turbulence. Its shares possess a very favourable price-to-earnings (P/E) ratio of 6.5. Meanwhile, it offers a quarterly dividend of $0.46 per share. That represents a very strong 5.7% yield.

Canadian Western Bank (TSX:CWB) is an Edmonton-based regional bank that has made a recent push into Ontario. This bank stock has plunged 13% over the past month. Its shares are now down 1.8% so far in 2023.

The bank unveiled its first batch of fiscal 2023 earnings on March 2. Chris Fowler, its president and chief executive officer, predicted that Canadian Western was on track to deliver “strong full-service growth” for fiscal 2023. In Q1 2023, the bank saw adjusted earnings per share (EPS) climb 16% from Q4 fiscal 2022 to $1.02. Canadian Western boasts a fantastic balance sheet. Moreover, it has delivered 31 straight years of dividend growth. That makes this bank stock one of the most dependable Dividend Aristocrats on the TSX.

Shares of this bank stock currently possess an attractive P/E ratio of seven. It offers a quarterly distribution of $0.32, which represents a strong 5.3% yield.

The post 2 Under-the-Radar Canadian Banks I’m Buying While the Buying Is This Good appeared first on The Motley Fool Canada.

Before you consider Canadian Western Bank, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in March 2023… and Canadian Western Bank wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 22 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks
* Returns as of 3/7/23

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Western Bank and Visa. The Motley Fool has a disclosure policy.