Despite most markets in 2018 hitting near all-time highs, value investors continue to have a tough time finding quality value stocks.
Amongst the noise there are a few value stocks worth having a look at, one which is a high-yield dividend stock, making it a great addition for long-term investing in your TFSA or an RRSP, where gains and income are sheltered from taxes and therefore your returns are maximized.
Linmar is the second largest auto parts manufacturer in Canada and have several factories across North America, Europe, and Asia. Their business is diversified, split into two core areas: transportation (74.1%) and industrial (25.9%).
Although they are somewhat known by investors, they deserve more attention then they typically get.
Their stock took a beating when the NAFTA talks broke down and discussions of tariffs were on the table. But the price has experienced a rebound. It’s currently trading at three times their expected EPS,
Within a market that is heavily saturated with competitors it’s still quite impressive Linamar continues to produce above market sales and earnings growth. In fact, for the last eight years Linamar has posted double-digit earnings growth.
Linda Hasenfratz, has been the company’s true hero, showing proven skills as CEO. She has led the international expansion efforts, quadrupling the company size while maintaining profitability. And she grew the company’s market share during the 2008 economic crisis.
Evertz Technologies (TSX:ET)
As a little known stock, Evertz is a pioneer in the audio and video market, designing manufacturing, and selling products for televisions, telecommunications, and more.
It’s a cheap stock with an excellent dividend yield of 4.32%. Strong cash flow and an excellent balance sheet showcases rising shipments and backlog numbers, totaling $122 million for the quarter. They are currently trading at 18 times their expected EPS.
This is an excellent choice for investors looking for strong dividend yield and proven track record.