Market Correction Offers Investment Opportunities

Market correction presents potential for savvy investors. Key stocks like Realty Income and Canadian National Railway are highlighted for their attractive dividends and growth prospects amid current market fears.

Date: 17-03-2025

AI Rating: 7

In this report, a noticeable market correction has led to opportunities for investors to seek discounted stocks during this downturn. **Realty Income** (NYSE: O) is highlighted as a strong candidate, despite its shares declining 25% from highs. This REIT has seen its ***funds from operations*** per share rise nearly 12% over three years, indicating robust growth. Furthermore, the prospect of lower interest rates under the Trump administration could benefit Realty Income by reducing borrowing costs, potentially increasing its growth avenues as it relies on leveraging for property acquisitions. With a dividend yield of 5.6%, Realty Income remains appealing to income-focused investors. On the contrary, **Canadian National Railway** (NYSE: CNI) is currently experiencing a sell-off due to tariff tensions affecting its operation. The stock is down nearly 30% from its peak but has a consistent history with management navigating through volatility. The report notes an impressive growth estimate of 9.6% in earnings annually for Canadian National Railway, combined with a dividend payout ratio of only 44%, showing significant room for maintaining its yield of 2.55%. This indicates the company remains stable with promising long-term growth. Lastly, **Carlisle Companies** (NYSE: CSL) is identified as facing pressure due to recession fears impacting commercial investments. Despite this, analysts predict earnings growth of 15% annually over the next three to five years, with management's history of elevating dividends for 48 consecutive years adding to its stability. The estimated earnings per share is expected to increase significantly by 2030, enhancing investor appeal amidst a shifting economic landscape.

Stocks: O CNI CSL