3 Value Stocks To Buy In 2021

After witnessing one of the biggest stock markets crashes a year ago, long-term investors are playing cautiously and picking up stocks wisely after reading through their market fundamentals and financial numbers. Macroeconomic indicators are also playing a vital role to identify the right stock for investment.

We explore three Toronto Stock Exchange-listed large-cap stocks that have posted robust quarterly results and completely recovered from their COVID-19 caused slump. On top of that, these companies are also providing consistent cash dividends to their shareholders.

1. Royal Bank of Canada (TSX: RY)

The leading Canadian bank reported a strong profit and capital market revenue, with a surge of 10 per cent and 27 per cent, respectively.  The bank lowered its provision for bad loans by C$ 300 million year-over-year in Q1 FY21.

The lender could see a credit demand on the back of the vaccination drive and reopening of businesses. It can also expect higher loan repayments and a lower provision for credit losses in the upcoming quarters.

The bank announced quarterly dividends of C$ 1.08 per piece for the second fiscal quarter of this year.

The blue-chip stock has rebounded fully and delivered over 48 per cent growth in one year. It has risen almost 7.5 per cent month-to-date, driven by the better quarterly net income.

2. Suncor Energy Inc. (TSX: SU)
   

One of the largest Canadian energy firm stock has returned over 16 per cent month-to-date, led by higher oil prices.

Oil prices are likely to extend their rally as major oil producers and the Organization of the Petroleum Exporting Countries (OPEC) push for production cuts.

The oil and gas company’s share price has gained 42.67 per cent in the past one year. However, the stock achieved a 52-week high of C$ 29.49 per piece on March 12. It offers a quarterly dividend of C$ 0.21 per share and yield 2.8 per cent.

The market cap is C$ 44.717 billion.

Source: Kalkine Group @2020

3. First Quantum Minerals Ltd. (TSX: FM)

The copper producer had an amazing last year and returned as much as 367.34 per cent. As copper prices gaining momentum once again, the base metal stock recorded a nine and half year high the last month.

The stock has swelled 22.10 per cent this year, outpacing copper futures that have yielded almost 17 per cent year-to-date, (recorded at 8:55 AM ET, March 15).

First Quantum distributes dividend of 0.005 per stock semi-annually. It has a market cap of C$ 19.261 billion. 

The company produced 778,911 tonnes of copper in 2020, up against 778,911 tonnes of copper production in 2019. The cost of production also dropped on a year-over-year basis.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.