3 Magnificent Stocks to Buy That Are Near 52-Week Lows

These three stocks are magnificent, despite hitting 52-week lows recently. But there is one I love in particular.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 23, 2024 5:00 pm EST

| More on: APR.UNINO.UNVITL.UN

I’m not sure if you’ve noticed, but the stock market continues to be all over the place. We seem to be more focused than ever on earnings, and it’s led to some insane drops in share prices. As well as jumps, sure. But it’s the drops that should pique your interest.

This is why today I’m going to look at three magnificent stocks to consider on the TSX today. All three are near 52-week lows and offer one huge benefit: dividends. So, let’s get right to it.

woman analyze data — Image source: Getty Images

NorthWest REIT

NorthWest Healthcare REIT (TSX:NWH.UN) doesn’t look all that fantastic right now. The company continues to trade near 52-week lows, with volatility abounding for this real estate investment trust (REIT). Yet there are some benefits to consider.

It seems that NorthWest stock may have bottomed out, now trading near $4.40 per share after hitting $3.89 at its lowest point. Even so, it has a long road ahead back to profitability. Yet once it reaches that, the company could only be up from there from stable investments in healthcare properties.

So, with a dividend yield of 8.22%, NorthWest stock could be worth your while if you plan on holding it for years to come. In that time, the dividends may end up paying for your investment itself! It’s certainly a strong stock to consider.

Inovalis

Another strong REIT to consider is Inovalis REIT (TSX:INO.UN), especially with shares at just $1.25 as of writing. That’s already an improvement from 52-week lows of $0.69. It also means an insanely high dividend yield at 31.98%, which means there is likely to be a dividend cut in the future.

Even so, you might as well grab it while you can. The company could return to normal — especially when the current market conditions around the world improve. That’s because the REIT mainly focuses on REITs in European office properties.

While office properties have been hit, the company should certainly see an increase either in divestments or a return to normalcy. Frankly, I’m betting on the former. Even so, the company looks sound enough to have hit rock bottom and climbed up from here.

Automotive REIT

Perhaps my absolute favourite deal, however, is Automotive Properties REIT (TSX:APR.UN). APR stock was hit hard during the pandemic, and that was twofold. First off, restrictions meant one couldn’t go buy a card. What’s more, supply-chain issues really meant there were no cars to buy.

However, that has changed. The demand for cars exploded, and with prices slowly coming down and interest rates cut in the future, there is bound to be a huge increase in interest. Meanwhile, shares trade at just $10.60 as of writing, slightly up from the $9.71 at 52-week lows.

So, right now, you can pick up the stock while it’s down, trading at just 5.28 times earnings and offering a 7.56% dividend yield. In fact, of all the companies on this list, I’d have to say this one is by far my favourite.