The Top 10 Canadian Stocks Ranked by Overall Strength

Transcontinental Inc. (TSX:TCL.A) heads up a list of the 10 strongest stocks on the TSX, analyzed for income, track record, future growth, health, and value.

We just did you a solid.

Here are the current top 10 strongest stocks on the TSX, sorted by overall performance based on dividend yield, track record, future growth, health, and value.

It’s a nicely diversified list, so if you are starting an investment portfolio, you might be looking at the basics of one right here. Itching for income stocks? Most of the following pay a dividend, and all have great future prospects.

Let’s start with number 10 and work our way towards the best one-size-fits-all stock on the TSX right now.

10. Savaria Corp. (TSX:SIS)

It’s currently overvalued, but Savaria makes the list by being an extremely healthy stock with a great growth forecast. The TSX’s top personal mobility stock is looking at a 33.5% annual rise in earnings. It’s also offering dividends of 2.15%.

9. Parex Resources Inc. (TSX:PXT)

Oil is everywhere right now, and not just the sun tan type. A good value all-rounder, Parex is into South American oil and natural gas exploration, development, production, and marketing. While it’s not a dividend stock, it has healthy multiples and a projected annual earnings growth of 18.2%.

8. Chorus Aviation Inc. (TSX:CHR)

A falling share price, low P/B ratio, soothing 36-month beta of 0.95, and tasty dividend of 6.89% make this the safest and best value aviation stock on the TSX right now. If you want to invest in tech, materials, and transport, this also makes a decent proxy for investing in all three sectors.

7. National Bank of Canada (TSX:NA)

An overlooked financial dividend payer, National Bank is cheap, has great multiples, and is offering a yield of 3.88%. It’s cheap and getting cheaper, and it’s stable, too, with a 36-month beta of 1.33. Now — why is it you don’t own this stock?

6. Western Forest Products Inc. (TSX:WEF)

The Canadian forest and paper sector is doing great, thank you very much, and even with threats of lumber tariffs doing the rounds, Western Forest Products looks set to continuing doing great. Invest in natural resources with this underappreciated dividend payer and add some diversification to your portfolio.

5. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS)

Yes, this stock is everywhere right now, but for good reason. Besides being a top emotional buy for brand-conscious new investors, it’s also one of the sturdiest financial stocks on the TSX, and its positive Q2 report is suggestive of a great year to come.

4. Evertz Technologies Ltd. (TSX:ET)

Evertz is the tech stock you didn’t know you needed, with decent multiples and a yield of 4.17%. Its balance sheet is great, and it’s got some decent growth ahead of it to keep its track record spotless. An established media stock, Evertz is one to buy and hold.

3. Enbridge Income Funds Holding Inc. (TSX:ENF)

While most investor are aware of the Enbridge name, ENF Holding doesn’t get a lot of air time. That’s a shame, because it’s a great stock for value investors looking for a sweet dividend (a very attractive 7.58%). It’s deeply discounted at the moment, so if you were looking for a lucrative energy infrastructure stock, this is a real bargain.

2. Laurentian Bank of Canada (TSX:LB)

The top financial stock on the list, Laurentian Bank is discounted and pays a decent dividend of 5.64%. With healthy assets and a good growth forecast, this is one banking stock to consider if you’re wary of the Big Six. Its beta is 0.79, which makes this a market-insulated stock that’s definitely worth considering.

1. Transcontinental Inc. (TSX:TCL.A)

That’s right — the number one stock on the TSX right now is a printing and packaging company that hardly anyone seems to be talking about. It’s a little baffling, because Transcontinental just had a really super Q2 and is currently undervalued. If you want a stable and lucrative dividend stock, then add Transcontinental to your shopping list right away.

The bottom line

Chances are, you haven’t heard much in the news about some of these stocks, but careful analysis of the five core metrics of overall stock performance show these to be the ones to start a fresh portfolio with. Likewise, if you’ve recently sold stock or are looking to pad out your investment portfolio, TFSA, or RRSP, then this is a nicely diversified selection to choose from.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. Chorus Aviation is a recommendation of Stock Advisor Canada. Savaria is a recommendation of Hidden Gems Canada.

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