Market Opportunity Comes in the Strangest Places

The market is firmly in correction territory. But before looking at those losses, perhaps it’s time to consider the market opportunity brewing right now.

| More on:

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.

Final thoughts

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.

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.

Fool contributor Demetris Afxentiou has positions in The Toronto-Dominion Bank. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.

More on Stocks for Beginners

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Stocks for Beginners

2 Top TSX Growth Stocks to Stash in a TFSA for Life

These two growth stocks may not be the top in the last month, but in the last few years, they…

Read more »

people relax on mountain ledge
Dividend Stocks

Invest $10,000 in This Dividend Stock for a Potential $4,781.70 in Total Returns

A dividend stock doesn't have to be risky, or without growth. And in the case of this one, the growth…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn a $15,000 TFSA Into $171,000

$15,000 may not seem like a lot, but over time that amount can balloon into serious cash.

Read more »

A worker uses a double monitor computer screen in an office.
Stocks for Beginners

Why I’d Buy Fairfax Financial Stock Even at Today’s Prices

Fairfax stock just keeps edging higher. But is it now too expensive, or can investors just look forward to even…

Read more »

Piggy bank in autumn leaves
Dividend Stocks

A 5.6% Dividend Yield? I’ll be Buying This TSX Stock for Decades!

This Big Six Bank offers a large dividend, growth strategy, and stability. In short, it offers it all!

Read more »

Concept of multiple streams of income
Stocks for Beginners

Lock Up This 9.2% Dividend Yield From a Top Royalty Stock

Royalty stocks have a strong advantage when it comes to creating passive income for investors. But this one has the…

Read more »

concept of real estate evaluation
Dividend Stocks

Buy 1,154 Shares of This Top Dividend Stock for $492.54/Month in Passive Income

This dividend stock can pay out top cash every month, sure, but has even more to look forward to.

Read more »