Whether these colossal 2025 laggards are worth buying for the new year and the new slate remains the big question. If you’re a patient value investor willing to wait things out, I think these hard-hit value names may be ready to take the lead again.
But as always, do the homework before you even think about buying! Let’s take a look at three names that are in a tough spot, but may be positioned to rally hard once the tide finally turns. It’s hard to tell the time, but if you have the courage and the time to wait, the next ones are definitely worth checking out!
Telus
Telus (TSX:T) stock is the dividend stock to watch this year, with shares down another 11% so far this year. That’s a pretty bad year, with the TSX index flirting with a 30% gain. And even though the situation for 2026 looks much better, don’t assume the coast is clear yet as the dividend yield hovers north of the 9.6% mark.
The dividend may be safe for the time being, but will not grow any further for the time being. That’s the nature of dividend growth fees. As we enter the new year, some major experts are optimistic about Telus and its high payout. While dividend growth is frozen, major cuts may not be on the horizon.
There probably isn’t much point in interrupting dividend growth if all you want to do is cut that dividend. Either way, I think the dividend is safe. And if so, perhaps 2026 will be the year investors pile into the name in the hope that a quarter will reveal improving trends. Is the telecom world facing challenges?
Most definitely. But it’s times like these when the big rewards are there for the taking. The big question is whether investors can handle the risk and the chance of another lost year. I think the risk/reward tradeoff is worth it.
Spin master
Spin master (TSX:TOY) shares failed to break through this year as shares are down more than 40% so far this year. Rates have undoubtedly been hit hard, but with the holidays approaching, I think there is potential for an upside surprise in the next round of quarterly earnings. Consumers may be mixed and the headwinds have weighed heavily, but things may not be as bad as they seem. Either way, I wouldn’t bet against the toymaker for $20 and change.
A low bar has been set and the management team believes it is “too early” to say how things will go during the holidays. I think there’s a chance it could be great, especially as brands persevere and new innovations (think physical-digital toys or ‘phygital’ toys) seem to be hitting their mark.
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