5 Canadian real estate stocks to buy & hold for 5 years

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5 Canadian real estate stocks to buy & hold for 5 years

5 Canadian real estate stocks
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Highlights

  • It could be possible that in the present market situation, some real estate companies or REITs may be looking at buying back shares
  • All these stocks saw their one-year lows last March, which may be testimony to their growth over the last 12 months
  • In the last one year, DRM has returned 80 per cent

If there’s one thing we know, it’s that Canada has a really hot housing market and supply is essential to ease demand. With equities tumbling world over, some quality stocks may be cheaply available.

It could possible that in this situation, some real estate companies or REITs may be looking at buying back shares.

Let’s look at some Canadian real estate stocks with one-year returns of over 20 per cent.

DREAM Unlimited Corp (TSX:DRM)

On Tuesday, May 24, DRM closed at C$45.17. Over the last week, DRM has increased about two per cent. In the last 12 months, it has returned 80 per cent.

It is 84 per cent better than its 52-week low of C$24.60 that came way back on May 28, 2021. It also pays a dividend and has a dividend yield of nearly one per cent.

The stock’s price-to-earnings (P/E) ratio, which indicates how many dollars of investment get one dollar’s gain, is 12.4.

Madison Pacific Properties Inc (TSX:MPC)

One of the avenues Madison operates in is investing in joint ventures to construct residential property. Tuesday’s close for MPC stood at C$7.07.

It has gained 2.5 per cent in a week and on a one-year basis, it has returned 51 per cent. Here too, the stock’s 52-week low of C$4.86 (up 46 per cent) came back on May 25, 2021.

The stock has a better P/E ratio of 8.1 than that of DRM and its dividend yield of nearly 1.5 per cent is also higher.

BSR Real Estate Investment Trust (TSX:HOM.U)

While BSR is in the red by three per cent year-to-date, over the last 12 months it has returned 41 per cent.

The stock closed on Wednesday on C$17.08 and it lost 13 per cent in the last 30 days. For the last week though, it is in the green, even if marginally and is now on the rebound after it was probably in undervalued territory.

Its P/E ratio of two, suggests an investment of just dollars for one dollar’s gain. Its dividend yield is over three per cent.

Boardwalk Real Estate Investment Trust (TSX:BEI.UN)

The REIT stock ended trade Tuesday at C$49.44. Its increase over the last 52 weeks stands at 32.4 per cent.

Similar to the other stocks, BEI.UN’s 52-week low was in May, last year. On May 25, 2021, it saw its one-year low of C$36.93.

Its dividend yield is about 2.2 per cent and P/E ratio is 4.7.

Also read: CU, FTS & EMA: 3 TSX utility stocks to buy as bond yields pull back

Mainstreet Equity Corp (TSX:MEQ)

MEQ at Tuesday’s close stood at C$111.90. Over the last 12 months, it has returned 31.3 per cent.

Its one-year low of C$84.42 was on May 26, 2021. MEQ doesn’t come with a dividend and its P/E ratio is 4.1.

5 Canadian real estate stocks

Bottom line

The market seems to be going through a bear phase and there is even talk of a recession. However, all these stocks saw their one-year lows last March, which may be testimony to their growth over the last 12 months. The stocks of BSR Real Estate Investment Trust has the best dividend yield and P/E ratio in this list but its one-year return is lower than that of DRM or MPC.

Also read: FFN, DF, DGS, LCS & FTN: 5 top TSX dividend stocks under $10

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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