Todays Trend
Global equity markets have turned volatile in recent weeks amid ongoing geopolitical and trade tensions, persistent inflation, elevated oil prices, and rising bond yields. Concerns about higher interest rates have added further uncertainty to the market outlook. In this environment, investors may want to focus on well-established businesses that provide essential services, generate resilient cash flows, and have visible long-term growth prospects.
Against this backdrop, let’s look at two Canadian stocks that could offer compelling opportunities for long-term investors. Source: Getty Images Bank of Nova Scotia Bank of Nova Scotia ( TSX: BNS ), which provides a broad range of financial services across multiple markets, is my first pick. The bank delivered a strong third-quarter performance, with net income rising 18.1% to $2.97 billion and adjusted earnings per share (EPS) increasing 21.1% to $2.28.
All four operating segments contributed to the strong growth. Meanwhile, return on equity (ROE) improved to 14.2% from 12.4% a year earlier, surpassing the bank’s 14% target. Reflecting its strong capital position, Scotiabank repurchased 8.6 million shares during the quarter, supporting per-share earnings and shareholder returns.
Overall, the bank has returned approximately $6.3 billion to its shareholders this fiscal year through dividends and share repurchases. Meanwhile, persistent inflation could delay interest-rate cuts, potentially supporting Scotiabank’s core lending business and net interest margins. The bank is also reshaping its geographic mix by focusing on its higher-margin North American operations while reducing exposure to lower-margin Latin American businesses.
This strategic repositioning could improve the quality and stability of its earnings and cash flows over time. Scotiabank also has an exceptional dividend track record, having paid dividends since 1833. The bank has raised its dividend payout at an annualized rate of approximately 4.5% over the past decade and currently offers a forward yield of around 3.5%.
With solid financial performance, ongoing strategic improvements, a long dividend history, and a forward price-to-earnings multiple of about 14.1, Scotiabank could be a compelling option for long-term investors amid an uncertain market environment. Savaria Another stock I am bullish on is Savaria ( TSX: SIS ), which provides accessibility and mobility solutions across multiple international markets. Its diversified global manufacturing and distribution network gives the company broad geographic reach and the flexibility to serve customers across regions.
Savaria delivered a strong second-quarter performance, with revenue rising 8.4% year over year to $245.8 million. Organic growth of 6.6%, supplemented by 0.8% growth from acquisitions completed over the past four quarters, supported the increase. Meanwhile, operating margin expanded by 280 basis points, helping adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rise 10.9% to $51.8 million.
The adjusted EBITDA margin also improved by 50 basis points to 21.1%, highlighting continued operating leverage. The company also benefits from favourable long-term demographic trends, as the aging global population drives sustained demand for accessibility and mobility solutions. Its diversified manufacturing footprint provides additional flexibility in navigating geopolitical and trade-related challenges.
At the same time, Savaria continues to invest in product innovation and pursue strategic acquisitions to broaden its capabilities, expand its market presence, and create additional growth opportunities. Savaria’s long-term outlook also remains encouraging. The company expects revenue to reach $1.6 billion by 2030, implying annualized growth of about 11.8%, while adjusted EBITDA per share could reach $4.25, representing annualized growth of 10.4%.
Savaria also pays monthly dividends and currently offers a forward yield of approximately 2.01%. With solid financial performance, favourable secular growth trends, consistent monthly dividends, and a forward price-to-earnings multiple of around 20, Savaria could be an attractive long-term opportunity.
Source: The Motley Fool Canada
