2 Top Stocks to Buy Without Hesitation in December 2023

These top stocks offer a huge opportunity in a recovering market, allowing investors to buy without hesitation as we head into 2024.

| More on:

The market is changing, and that means it’s time to start looking at top stocks for the new year. Especially ones that perhaps weren’t doing so well, but are in for a strong 2024. So today, we’re going to look at what’s been changing in the market, along with two top stocks to consider as it potentially starts to rebound even more.

Times are changing

The Bank of Canada came out last week stating that it would be keeping interest rates at 5%. Now, not only does it look like the next announcement won’t be a rate hike, it’s looking as if we could potentially see a rate drop in the near future.

This is why real estate investment trusts (REIT) could be a strong choice for 2024. Analysts are becoming even more confident that there will be several rate cuts in 2024, and therefore a soft landing will be on the books for investors with top stocks.

Because of this, REITs look like they are trading at a huge value right now. As rate cuts occur, there should be an increase in share price for strong REITs. In fact, some analysts believe that there should be a 10% or even 20% increase in share price for some REITs in 2024 – particularly for multi-family homes, retail, industrial, and office properties.

InterRent

A top recommendation among analysts for this eventuality then includes top stocks like InterRent REIT (TSX:IIP.UN). The dividend stock continues to focus its attention on urban markets, ones that have seen growth thanks to more rental growth in hand. Now, it’s expected to deliver funds from operations growth in 2024.

Yet, shares of IIP stock trade at incredible values. It currently offers a 2.98% dividend yield, and shares are just up 1% in the last year. InterRent has also come down quite a bit from 52-week highs, but is showing signs of strength more recently.

Shares of IIP stock are now up about 10% in the last two months. So as it continues to rebound, there should be even more growth for investors to look forward to. In fact, the stock now has a consensus price target of $14.23 by analysts. That would create a potential upside of 13% as of writing.

Killam

Then we have Killam Apartment REIT (TSX:KMP.UN), which has also received strong recommendations from analysts among top stocks today. Analysts believe the stock should continue to see strong top-line growth going into 2024, and that should speed up as we make it through the year. With that in mind, the stock seems “deeply discounted” in the words of one analyst.

The dividend stock is the perfect choice for those projecting more growth in the rental space for 2024. And that should certainly be the case. And Killam stock remains one of the largest residential real estate trusts on the market. The stock should continue to expand throughout 2024, while offering plenty of value on the market today.

Killam stock now offers a 3.94% dividend yield, with shares trading at just 8.2 times earnings. Shares are up 8% in the last year. However, there was a major jump of about 14% after its latest earnings release. So now could be a great time to pick it up on a consensus price target that could lead to a potential upside of 18% as of writing.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Killam Apartment REIT. The Motley Fool has a disclosure policy.

More on Dividend Stocks

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

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

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Boost Your Passive Income: 2 Canadian High-Yielders at a Bargain

Nutrien (TSX:NTR) stock and another play that appear like fantastic dividend bargains in mid-November.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

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

Here’s the Average TFSA Balance at Age 44 in Canada

You can invest your TFSA in funds like the BMO Canadian High Yield Dividend ETF (TSX:ZDV) to grow the balance.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

The Best Telecom Stock to Buy Before 2025

Choosing the safest stock from a decimated sector can be tricky, but if there is a reasonable chance of full…

Read more »