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It’s been somewhat of a frustrating year for Canadian investors. The S&P/TSX Composite Index has been on several runs of 5% or more in 2023, yet the index remains barely positive on the year. To make things seem even worse, the U.S.-based S&P 500 index is up just about 20% this year. And that’s not even including dividends, either.
While there may be lots to complain about in the short term, there’s no denying the amount of bargains on the TSX today. The volatility in 2023 has created plenty of buying opportunities for investors who are willing to be patient.
I’ve put together a basket of three TSX stocks that could offer long-term investors some serious value.
TSX stock #1: Kinaxis
After a rough performance in 2022, the tech sector as a whole has come roaring back this year. However, even with the impressive rebound in 2023, many top tech stocks continue to trade far below all-time highs from 2021.
Shares of Kinaxis (TSX:KXS) are flat on year and trading more than 30% below all-time highs that were set in late 2021. Still, the tech stock is up a market-crushing 120% over the past five years. That’s good enough for more than doubling the returns of the broader Canadian stock market.
Investors who have been thinking of adding some tech exposure to their portfolios may want to act quickly. If the momentum from 2023 carries into next year, we may not see these discounts around for much longer.
TSX stock #2: Brookfield Infrastructure Partners
There’s never a bad time to be loading up on a dependable dividend-paying company like Brookfield Infrastructure Partners (TSX:BIP.UN). And that’s especially true during volatile market periods, like that which Canadians have been experiencing as of late.
At a market cap of $17 billion, Brookfield Infrastructure Partners is not only a Canadian-leading utility provider but a global one. The company’s well-diversified global portfolio of business is a key reason to have this utility stock on your watch list.
Another reason to be interested in Brookfield Infrastructure Partners is for the passive income. At today’s stock price, the company’s dividend is yielding an impressive 5.5%.
Down 30% from all-time highs, there are more reasons than one to be loading up on Brookfield Infrastructure Partners right now.
TSX stock #3: Northland Power
My last pick is a beaten-down renewable energy stock that’s seen better days. In Northland Power’s (TSX:NPI) defence, the entire renewable energy sector has struggled over the past several years.
Excluding dividends, shares of Northland Power are down more than 50% since the beginning of 2021. One silver lining is that the selloff has shot the dividend up, which is currently yielding above 5%.
If you’re bullish on the renewable space, now could be an excellent time to be putting your money to work.
It’s very possible that this decline will continue in the short term. However, I certainly wouldn’t want to be betting against the long-term rise of renewable energy consumption.
As long as you’ve got the time horizon that allows you to be patient, I’d strongly encourage having at least one green energy stock on your watch list.
