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Value-based investing is one of the safest ways to invest. Dividends offer another layer of security. Here are two stocks that offer increasing value and dividends
The Bank of Nova Scotia (TSX: BNS) (NYSE: SNB) generated a lot of wealth with below-average risk for investors in Canada. long term. Its earnings per share has been very stable. Even during the financial crisis of 2007/2008, the earnings per share of the quality bank has only experienced modest declines.
His earnings per share declined only about 6% between 2007 and 2009, after which he began his steady rise. The recent weakness of Scotiabank's stock, thanks to its recent acquisitions, makes it a better value compared to the two largest Canadian banks and constitutes a fabulous buying opportunity.
Scotiabank is trading at its lowest level since 2017. It is now time to consider buying on the plunge to get a sure dividend yield of 4.3%.
There is more to love about the stock of blue chips. Scotiabank is able to grow its dividend faster than the pace of inflation. Scotiabank's three-year dividend growth rate is 6%. Long-term investors and risk averse can pretty much buy the stock here and forget it
The Consensus of the Thomson Reuters Corp. Analyst has a target price of $ 12.80 per share over 12 months, which represents growth potential of approximately 15% in the short term compared to the recent price of $ 76 per share.
Manulife Financial Corporation (TSX: MFC) (NYSE: MFC) has made many changes. Increased uncertainty depressed the stock. If Manulife's focus on global wealth and badet management, its digitization strategy and the growth of its operations in Asia can drive up share prices over the next few years, the turnaround should be dramatic. If the stock is trading at its normalized multiple over five years over the next few years, it can trade between $ 33 and $ 39 a share against a rise of 40 to 65%. 19659004] The consensus of Reuters badysts has a more conservative target of $ 30.30 per share over 12 months, which represents a potential upside of about 28% in the short term.
Currently, Manulife shares offer a decent return of 3.7%. The company has the ability to grow its dividend at least at a rate that doubles inflation. Manulife's three-year dividend growth rate is 12.9%.
Investor to take away
The shares of Scotiabank and Manulife have double-digit growth potential in the short term, meaning stocks offer value. While you wait for the market to reach the value of blue-chip stocks, you can collect good dividends, which will rise faster than inflation and help you maintain your purchasing power.
If you are reading this, you have the option to join thousands of other investors who can take action on this 4X critical action buying alert.
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Our badysts at Motley Fool Canada are so convinced of the brilliant future of this company.
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Foll contributor Kay Ng owns shares in Bank of Nova S Cotia and Manulife.
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