Timing the stock market is no easy task, even for veteran investors. Predicting a market crash and selling before it happens is an impossible goal. The alternative approach is to invest in companies that are among the top 100 Canadian stocks in 2019. You can create passive income at the same time.
AltaGas Canada (TSX:ACI) is a $1 billion natural gas distribution utility company. Its renewable energy and utility segments provide rate-regulated utility services in northern British Columbia. The company also operates gas distribution systems.
Since its inception in 2011, AltaGas is now serving 130,000 commercial and residential customers. On a year-to-date basis, the stock has gained 114.75%, with a corresponding dividend of 3.11% and a low payout ratio of 58.17%.
The impressive third-quarter 2019 financial results show the potential of this stock as a profitable investment. AltaGas reported a net income after tax of $2.8 million, which is a 460% jump compared with the same period in 2018.
AltaGas’s strength lies in its renewable portfolio. The value of the business is highly noticeable. The Public Sector Pension Investment Board and the Alberta Teachers’ Retirement Fund Board (ATRF) are acquiring the company in a $1.7 billion deal.
Hydroelectric power giant
Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is another steady performer. The shares of this $11 billion global leader in hydroelectric power are up 81% and offering a 4.3% dividend.
Its portfolio of 5,253 generating facilities and more than 18,000 MW capacity is also one of the world’s largest publicly traded renewable power platforms.
The facilities of Brookfield are in North and South America. Approximately 74% of its portfolio is in hydroelectric power. Also, the company owns, operates, and invests in the wind, solar, distributed generation, and storage facilities. All these power assets are high quality but low cost.
Brookfield’s primary objective is to deliver long-term annualized total returns of 12-15%, which includes annual distribution increases of about 5-9% from organic cash flow growth and project development.
Lately, investors’ money is flowing into non-traditional energy stocks like Brookfield. Renewable companies are sure to grow continuously, and therefore it’s ideal to own them for the long term.
Easy does it
goeasy (TSX:GSY) is a surprise package in 2019. This $970 million alternative lender is showing gains of 92.6% so far this year. The stock rose from the 2018 year-end price of $35.11 to its current price of $67.64.
Although the 1.81% dividend is modest, the business of extending loans through the easyfinancial and easyhome segments has plenty of room to grow. Despite a loan portfolio of sub/near-prime short-term borrowers, the company is executing brilliantly.
The loan books are gradually increasing. Over the last three years, revenue and net income grew by an average of 18.6% and 31.42%, respectively. goeasy expects to end 2019 with a 15% revenue growth and a 38.5% increase in profit.
In Canada, there’s a high demand for alternative lenders. goeasy is the go-to financing company of people possessing not-so-good credit quality. The business is accelerating, and the only threat is when consumer debt rises to an alarming level.
Mitigate the risks
Stock investing is a risk. But you can contain the risks without having to time the market by investing in top-performing dividend stocks.
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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 Christopher Liew has no position in any of the stocks mentioned.