3 Popular Stocks I Would Buy Again and Again

Shopify Inc. (TSX:SHOP)(NYSE:SHOP), Canopy Growth Corp (TSX:WEED)(NYSE:CGC), and Enbridge Inc. (TSX:ENB)(NYSE:ENB) are popular stocks for a reason and are still great options for your portfolio.

| More on:
A stock price graph showing growth over time

Image source: Getty Images.

A lot of writers out there like to hate on popular stocks. And for part of it, I can see why. If you’ve missed the boat on a popular stock, you absolutely want to be the one to find the next one that is about to soar.

But some of those popular stocks are popular for a reason: they’re profitable. No matter how much you want to find a new stock to buy, there are a few that will just continue to pour cash into your pockets.

Three of those type of stocks I’d consider in this category are Shopify (TSX:SHOP)(NYSE:SHOP), Canopy Growth (TSX:WEED)(NYSE:CGC), and Enbridge (TSX:ENB)(NYSE:ENB). While some you might have to wait a bit longer to see bigger results than others, I would still consider all these a buy for the long term.

Shopify

This e-commerce business has had a killer run over the last few years, but the last 12 months have been crazy. After a strong summer, the stock dropped down to the $160 range in October and investors were not happy. But if you’d bought then, you’d be laughing now with a $285 share price at the time of writing this article.

Yet a lot of analysts think this stock is only starting to rev up. While there was some argument that short sellers believed its merchant data was a bit idealistic, Shopify has proven them wrong.

And now, with a low Canadian dollar and money being made around the world, including the United States, Shopify could actually see a further increase at the end of each quarter. Then of course, over the long term, Shopify has the potential to become more like Amazon and start handling much larger businesses. The benefit would be that these companies get a website dedicated to themselves rather than sharing with Amazon sellers.

Canopy Growth

Canada’s largest marijuana producer has had a crazy run too. The stock also reached a peak last summer near $70, only to drop to less than half that. It climbed back up, but has since fallen to the $50 range.

Honestly, I would buy it at this price again if I were a new investor. The company has slumped because the constant stream of announcements has ended. But that doesn’t mean this company is slowing down; in fact, it’s quite the opposite.

The company has used its money wisely, investing in research data in the United States, growing its hemp supply, and partnering with Constellation Brands. In Canada, it was recently approved for 4.3 million square feet of production space by Health Canada. Once production revs up in Canada, and marijuana is hopefully legalized in the United States, this company will be the king of cannabis producers.

Enbridge

This stock remains a no-brainer. It’s far below its fair value price of about $60, and its Line 3 replacement project green light gave a boost to the entire oil and gas industry.

But the company isn’t stopping there. It has $16 billion to spend over the next few years on expansion and growth projects. But Line 3 remains the largest opportunity, with the $9 billion project set to be transporting 750,000 barrels of crude from Alberta to Wisconsin by the latter half of 2020.

As for its books, Enbridge couldn’t be better. It has continued to focus on reducing debt and has completed $7.8 billion in asset sales. This was more than double its $3 billion target.

Oh, and of course, it has a sweet quarterly dividend of 6.04% at the time of writing this article. So, like I said, it’s a no-brainer.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns shares of Canopy Growth, ENBRIDGE INC, and Shopify. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Amazon, Enbridge, Shopify, and Shopify. Enbridge and Shopify are recommendations of Stock Advisor Canada.

More on Investing

Arrow descending on a graph
Investing

3 Stocks to Add to Your Portfolio in a Market Pullback

The stock market is in the green, but the upcoming U.S. Fed meeting raises fears of a pullback. Use that…

Read more »

Tech Stocks

Your Future Self Will Thank You for Buying Lightspeed Stock in 2023

Here’s why you may want to add LSPD stock to your portfolio in 2023 to hold it for the long…

Read more »

a person watches a downward arrow crash through the floor
Tech Stocks

Don’t Wait for a Market Crash: These 2 Top Stocks Are on Sale

Waiting for a market crash can take away the opportunity to buy early in the market rally while growth stocks…

Read more »

Coworkers standing near a wall
Tech Stocks

What’s Next for Magnet Forensics Stock After Hitting a 52-Week High Last Week?

While TSX tech stocks have lost around 30% last year, Magnet Forensics stock has soared 82%.

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Tech Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Got $500 to invest? Consider buying these stocks that are too cheap to ignore.

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Cheap Dividend Stocks (Down Over 30%) to Buy in January 2023

Given their discounted stock prices and high yields, these three cheap dividend stocks could be attractive for income-seeking investors.

Read more »

Young woman sat at laptop by a window
Stocks for Beginners

3 Stocks Beginners Can Buy in 2023 and Hold for Decades

Are you looking for a simple portfolio to get started as an investor? These three stocks are top performers and…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

TFSA Investors: Earn Passive Income With 3 Blue-Chip Stocks

TFSA investors can worry less about a recession and earn passive income with three blue-chip stocks as core holdings.

Read more »