2 Top Canadian Stocks to Buy on the TSX

You should research TFI International Inc (TSX:TFII) on the Toronto Stock Exchange in Canada if you are looking for a top dividend stock to buy this year.

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Experienced Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) investors in Canada know that you can’t just buy any stock for your market portfolio. You need to find strong companies with a reliable dividend and price history to secure your retirement.

Some Canadian savers might not yet feel comfortable choosing their own stocks, but it is easier than it sounds. Moreover, self-investing allows you to ditch the hidden fees in group retirement plans. Paying someone to over trade in your name just doesn’t make sense when you can easily buy and hold a few winners for life.

If you’re trying to decide whether to begin this self-investing journey, I encourage you to take a look at these two top performers on the Toronto Stock Exchange. These two Canadian stocks have all outperformed the S&P/TSX Composite Index Level percent change of 44.29% in the last 10 years.

The price percent change of TFI International Inc (TSX:TFII) and Exco Technologies Ltd (TSX:XTC) have all exceeded 100% in the past 10 years with great financials to report.

XTC Chart

XTC data by YCharts

TFI International Inc

TFI International, known as TransForce Inc until December 2016, is a global transportation and logistics services corporation in Canada. The company operates trucking and delivery services in the United States, Canada, and Mexico in industries such as medical, environmental, financial, and chemical.

In the past year, TFI International has returned 21.6% to shareholders between capital gains and dividends. Moreover, the stock is undervalued at a price of $44.59 per share at the time of writing.

At the current stock price, the dividend yield is 2.33% and the price-to-earnings (P/E) ratio is 12.43, signalling to investors that this is a great stock to buy.

Investors in Canada may want to start looking into investing in last-mile delivery stocks like TFI International. The money will soon start flowing into these companies to invest in drones and automation. The next decade has a lot in store for the stock market, and drones are the next big market mover.

Exco Technologies Ltd 

Based in Markham, Canada, Exco Technologies Ltd manufactures automotive parts and equipment in Canada, the United States, Europe, Mexico, South America, and Asia. Canadian investors will want to keep an eye on this stock, because the price may get a boost in 2020.

Exco Technologies has struggled with below market average returns in the past year. Although the price on the S&P 500/TSX Composite Index rose 18%, the price on shares of Exco Technologies stock fell 11.43%.

Today, at the price of $8.09, the dividend yield is 4.45% and the P/E ratio is 12.53.

The stock has certainly been correcting downward. The stock formed a bubble in 2015 with a huge surge in investment capital. Now that it has come down from there, it should start to correct upward again in the next year or so.

Considering the North American trade conflict with Asia and supply chain security concerns dominating sourcing decisions, Exco Technologies still has a major advantage in the automotive market as a Canadian company.


XTC Chart

XTC data by YCharts

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 Debra Ray has no position in any of the stocks mentioned. The Motley Fool owns shares of EXCO TECH.

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