On Sale – 3 Discounted Stocks That Scream ‘Buy Now’

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If there was one word that could sum up how the market looked in 2022, most investors would say ‘Volatile‘. Fortunately, with that volatility, there is always an element of chance. That opportunity represents stellar discount stocks waiting to be bought.

Here are three discount stocks to add to your portfolio.

Renewable energy has great potential

One of the biggest long-term opportunities in the market right now comes in the form of renewable energy. And as renewable energy requirements come into play, traditional utilities face huge costs to replace their facilities.

That transition is already complete for renewable energy companies like TransAlta is renewable (TSX:RNW) which means TransAlta can invest in growth initiatives. TransAlta operates a portfolio of more than 40 facilities across Canada, the United States and Australia.

Unfortunately, that growth will slow in 2023, as interest rates rise and the costs associated with further growth increase. That’s part of the reason TransAlta’s stock has tumbled in recent weeks.

In fact, year-to-date, the stock is down 40%, making it one of the most discounted stocks to consider for your portfolio. That drop has pushed TransAlta’s dividend yield to 8.45%.

Those dividends are distributed on a monthly cadence. This means an investment of $45,000 will generate a monthly income of over $315.

Prospective investors should keep in mind that rising interest rates will spread to other parts of the market, and not just to TransAlta’s development projects.

Telecom offers a complete defense package

Telus (TSX:T) is one of Canada’s largest telcos. Telecoms are great investments thanks to their reliable revenue streams and juicy dividends. They also offer some defensive appeal, which is a huge bonus in a volatile market.

In recent years, telecommunications have become more defensive. The need for a fast and stable internet connection has increased since the start of the pandemic, as more people now work and study remotely.

Adding to that appeal is the development associated with 5G. 5G comes with the promise of higher speeds, lower latency and increased network capacity. In other words, 5G allows more devices to connect and accomplish more tasks faster than ever before.

As a result, it will introduce new generations of devices, improved functionality and better user experiences (already available), all of which will use more data. This translates into an increased defensive moat for Telus.

Finally, let’s not forget Telus’s dividend yields a juicy 5.37% and that dividend has been around for two decades. Over that period, the compound annual growth rate of those dividends has been more than 10%, making Telus a great discount stock.

Banking on growth and dividends

You can’t compile a list of discounted stocks without mentioning one of Canada’s biggest banks. That’s why now is the last of the three discount stocks to consider Bank of Nova Scotia (TSX:BNS)

At the time of writing, Bank of Nova Scotia is down 25% year to date. That pales in comparison to the nearly 10% the market has fallen over the same period. This makes Scotiabank a great discount stock to consider.

Like its big bank peers, Scotiabank has a solid domestic division that generates a solid revenue stream. That’s where the similarities end. Unlike its peers that are focused on expanding into the US market, Scotiabank has a growing international division focused on markets in Latin America.

Turning to dividends, Scotiabank has a yield of 6.18%. This means that an investment of $45,000 will generate an income of almost $2,800. Adding to that appeal, Scotiabank has paid that dividend regularly for nearly two centuries.

In short, Scotiabank is a discount stock Monster Dividends And great growth opportunities.

Which discount stocks would you buy?

No investment is without risk. That’s why it’s always good to build a well-diversified portfolio. Fortunately, in the case of the three investment options mentioned above, they all offer significant growth and income-generating opportunities.

In short, ‘Buy Now!’ The question is, will you?


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