Forget Bitcoin! 2 Stocks to Buy That Won’t Keep You up at Night

Manulife Financial stock and Absolute Software stock could be far better investments to consider for your portfolio for wealth growth instead of Bitcoin.

| More on:

Bitcoin and other cryptocurrencies have been making waves again since last year. The leading asset in the cryptocurrency space led a powerful charge to reach new all-time highs of over US$63,000 earlier this year. As of writing, the value of a single Bitcoin is worth US$38,140, and the figure keeps violently fluctuating in this region.

Cryptocurrencies started becoming popular as a possible alternative to traditional currencies. Gradually, many people began considering them as a better alternative to gold as a store of value. Unfortunately, it does not seem like it can fulfill either of those two roles.

Cryptocurrency transactions are yet to become accepted in the mainstream, and there is still no control over how its value increases and decreases, making it too volatile for use as a currency or as a safe-haven asset.

Every investment asset comes with its set of risks. However, the risks associated with the stock markets involve underlying businesses going under, losing investors’ trust, or bad fundamentals. Bitcoin and other cryptocurrencies can even fall off a cliff if an influential person says anything negative about them.

If you are looking for safer investments, I can suggest two excellent stocks to consider adding to your portfolio.

Manulife Financial

Manulife Financial (TSX:MFC)(NYSE:MFC) has been around since 1887, conducting business for centuries. The $48.55 billion market capitalization company is a powerhouse in the insurance sector. It could offer you much more peace of mind as an investment that you can rely on than Bitcoin.

The Toronto-based financial services and insurance provider is up by 11.46% on a year-to-date basis, despite a decline of around 9% in the last few months. It is trading for $25 per share at writing and boasts a juicy 4.48% dividend yield at its current valuation.

The company released its Q1 2021 earnings report on May 5 and posted impressive figures. Its earnings increased by 67% from the same period last year. Its annualized premium equivalent sales rose 14% to $1.8 billion. As the Asia-based markets present increasingly lucrative opportunities, Manulife Financial is well positioned to capitalize on the demand and offer substantial upside potential to its investors.

Absolute Software

Absolute Software (TSX:ABST)(NASDAQ:ABST) is an excellent stock to consider if you are looking for a growth stock. Trading for $17.06 per share, Absolute offers a meagre 1.88% dividend yield. However, the real opportunity that the stock presents is through its massive upside potential.

The stock is trading for a cheap valuation compared to peers and offers more robust growth. Its annual recurring revenues have accelerated in four consecutive quarters, growing its adjusted EBITDA at stellar speeds. The company’s management projects double-digit growth in its top line this year, as its margins continue growing at a healthy pace.

Increased spending on cybersecurity, a large addressable market, and a host of new products mean that Absolute Software is well positioned to provide investors with exceptional growth in the coming years.

Foolish takeaway

Cryptocurrencies are an unusually frothy affair. After climbing to new all-time highs, Bitcoin and its peers continue to trade at far lower valuations. If you are looking for safer returns on your investments, Bitcoin is something you ought to avoid.

Manulife Financial could be a viable alternative if you seek an income-generating asset that offers reliable dividend payouts. Absolute Software could be a far better alternative if you seek an asset that can grow your wealth at a good pace but does not come with the uncertainty of cryptocurrencies.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Dividend Stocks

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »