Easy-Peasy High-Profit Transformation Shares to Acquire Instantly for Under $500 at Present
Every enterprise inevitably encounters headwinds at some point. When this happens, even companies with promising long-term prospects can see investors fleeing, seeking safer pastures. It's in these challenging times that turnaround investing becomes alluring for daring income investors. Three such potential turnarounds worth examining today comprise Toronto-Dominion Bank (TD 0.17%), Bank of Nova Scotia (BNS 0.37%), and EPR Properties (EPR 2.54%).
Toronto-Dominion Bank
Known simply as TD Bank, Toronto-Dominion is one of Canada's leading banks. While operated under strict regulations, this sturdy framework has bolstered the bank's initial position. Myriad challenges face the Canadian arm, but the U.S. operations are at the epicenter of concern.
In 2022, TD's U.S. bank ran into regulatory troubles over money laundering concerns. Consequences included substantial fines, massive investments in upgrading controls, and an asset cap instituted as a penalty. As a result, TD's long-planned growth engine has curbed its progress.
Despite the impediment, TD Bank announced an increase in its dividend after resolving with U.S. regulators, indicating confidence in its recovering prospects. Its attractively high yield—5.1%—offers an allure for those seeking a low-risk, high-reward opportunity.
Bank of Nova Scotia (Scotiabank)
A household name in Canada, Bank of Nova Scotia (Scotiabank) boasts a solid foundation. Instead of setting up shop in the U.S., Scotiabank shifted its gaze to South America in search of growth. However, the intended expansion didn't perform as envisioned, leaving the bank with a hefty 5.3% dividend yield.
Recognizing the need for improvement, Scotiabank is refining its approach. Components of its revitalization plan include exiting underperforming South American markets and focusing on those with higher promise—particularly the U.S. Interested investors can claim a sizeable yield while awaiting the outcomes of Scotiabank's strategic changes.
EPR Properties
Shifting gears to the realm of real estate investing, EPR Properties boasts a portfolio focused on "experiential properties." The coronavirus pandemic ravaged malls and entertainment centers, EPR Properties' most significant sources of revenue.
The REIT has been forced to suspend its dividend and reduce it upon its resumption. Currently, it restructures property holdings to improve its long-term outlook. The biggest hurdle lies in the decline of rental income from movie theaters—36% of the REIT's rent.
Despite these challenges, EPR Properties tenants' pre-rental coverage—divided by rent—significantly improved (2.6x vs. 2.0x in 2019). Its third-quarter payout ratio stands at 66% in adjusted funds from operations, which might boost investor confidence in the dividend's security. Furthermore, an enticing 7.3% yield awaits those seeking this REIT's turnaround potential.
Balancing Risk and Yield
While none of these entities thrive in a turnaround state, effectual management seems to be steering them in the right direction. Each presents an attractive blend of relative safety and high yields. Investing requires exploring the intricacies of each entity and assessing the balance they offer between risk and return.
In light of the regulatory troubles, TD Bank has announced an increase in its dividend, showcasing confidence in its recovering prospects and offering an allure for income investors seeking a low-risk, high-reward opportunity with a yield of 5.1%.
Scotiabank's strategic changes, including exiting underperforming South American markets and focusing on high-potential ones, provide an opportunity for investors to claim a sizeable yield while waiting for the outcomes of its revitalization plan, currently offering a 5.3% dividend yield.
