The Motley Fool

Best Canadian Stocks for March 2020

Vineet Kulkarni: B2Gold Corp.

My top stock for March is B2Gold (TSX:BTO)(NYSE:BTG). It is a $6 billion Vancouver based low-cost gold producer. It operates three gold mines spread across the Philippines, Namibia, and Mali.

B2Gold has notably increased its gold production recently, which is expected to double in 2020 against 2015 levels. The company is financially sound with little debt on the books. Higher gold prices and improved production could bode well for B2Gold’s earnings in the near to intermediate future.

As the yellow metal continues to soar, it will likely boost B2Gold stock due to positive correlation. B2Gold stock has marginally underperformed peers recently, but it still has a long way to go in my view.

Fool contributor Vineet Kulkarni does not have any positions in the stocks mentioned.


Cindy Dye: Inter Pipeline

Inter Pipeline (TSX:IPL) pays a hefty dividend yield of 7.63%, and this yield has grown by 7.3% CAGR over the past decade. The company is involved in petroleum transportation and storage, and natural gas liquids processing in both Canada and Europe.

The company, with a $9.2 billion market cap, reported $204 million in funds from operations (FFO) during the last quarterly earnings release. Most of this money came from the oil sands transportation business, which generated $153 million in FFO.

Inter Pipeline is planning several large capital expenditures this year. The projects will total $1.2 billion, with $1.1 billion of this amount allocated to organic growth ventures.

Fool contributor Cindy Dye does not own shares of Inter Pipeline.


Andrew Walker:  Barrick Gold

Barrick Gold (TSX:ABX)(NYSE:GOLD) is benefitting from the recent gold rally, and more gains could be on the way.

The price of gold is trading at levels not seen in seven years, and analysts are now suggesting the 2011 high near US$1,900 per ounce could be reached if fears surrounding geopolitical tensions and global economic conditions continue through 2020.

Barrick Gold is targeting gold production of about five million ounces this year, so every US$200 jump in the price of gold brings in an additional US$1 billion on an annualized basis.

The company could be debt-free by the end of 2020, and has the potential to generate significant free cash flow on higher gold prices.

Fool contributor Andrew Walker owns shares of Barrick Gold.


Ambrose O’Callaghan: Dollarama

Dollarama (TSX:DOL) is my top stock pick for March, after its shares have taken a big hit in late 2019 and early 2020.

Investors can expect to see its fourth quarter fiscal 2020 results later this month; in the year-to-date period, the company has reported net earnings of $385 million over $373 million in the prior year.

The company still has a high level of debt, but its expansion has remained on track and I’m excited about its acquisition of Dollarcity in Latin America.

Dollarama stock had a Relative Strength Index (RSI) of 21 at the time of this writing. This puts the stock well into technically oversold territory.

Therefore, I love Dollarama as a buy-the-dip candidate considering its growth potential!

Fool contributor Ambrose O’Callaghan has no position in any stocks mentioned.


Demetris Afxentiou: Fortis Inc.

With a growing number of pundits now expecting a market correction to happen sometime in 2020, the need to diversify into one or more defensive stocks has never been greater. That’s just one of several reasons why Fortis (TSX:FTS)(NYSE:FTS) is my top pick for this month.

As a utility, Fortis benefits from a stable and recurring revenue stream, which gets passed on to investors in the form of a quarterly dividend that pays out a respectable 3.26% yield. Adding to that appeal is the fact that Fortis has provided shareholders with 46 years of consecutive annual upticks, and Fortis forecasts further bumps to that dividend through 2024.

Fortis also takes an aggressive stance towards expansion and has a multi-billion dollar capital growth program in place to improve efficiency and shift the company towards renewables. In short, it’s the perfect defensive holding for long-term investors.

Fool contributor Demetris Afxentiou owns shares of Fortis Inc.


­­­Kay Ng: Bank of Nova Scotia

In a frothy stock market, it’s not easy to find a sleep-well-at-night stock that offers both value and quality. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one such stock that also provides handsome dividends.

At about $74 per share, the international bank trades at a blended price-to-earnings ratio of roughly 10.3. This represents a 15% discount from its normal valuation that investors can take advantage of to get an elevated dividend yield of 4.9%.

Scotiabank has paid dividends for more than 180 years, and it has stable and persistently growing earnings to continue increasing its dividend. As a result, BNS stock is my top idea for March.

Fool contributor Kay Ng owns shares of Bank of Nova Scotia.


Andrew Button: Fortis Inc

We’re living in a challenging time—both for the markets and for the world. With coronavirus disrupting global supply chains and a tense U.S. election season creating jitters, investors are bracing for turbulence.

In this kind of environment, a utility like Fortis (TSX:FTS)(NYSE:FTS) can be your ace in the hole. Utilities have stable revenue streams due to the indispensable nature of their service. As proof of that, we can point to the fact that Fortis grew its earnings in 2008 and 2009 — the peak years of the global recession.

Fortis does have its own concerns, namely a high level of debt, which will only increase with its $18.3 billion capital expenditure program. However, it’s as safe a stock as you can ask for in this environment.

Fool contributor Andrew Button has no position in any of the stocks mentioned.


Stephanie Bedard-Chateauneuf: VIVO Cannabis Inc

VIVO Cannabis (TSX:VIVO), a manufacturer and distributer of medical and recreational cannabis, is my top stock for March.

VIVO’s capacity estimates for 2019 include 1,500 kg of indoor cannabis and an additional 14,000 kg grown in a greenhouse. To increase supply and distribution, the company has entered into strategic equity investments in Canadian cannabis retailers National Access Cannabis, Choom Holdings and Westleaf Cannabis, all of which operate in Ontario or have operating projects in Ontario. On December 20, 2019, VIVO announced its Cannabis 2.0 products, which include vapes, chocolates, and concentrates that include kief, rosin, bubble hash, wax and shatter.

VIVO has partnered with an award-winning Belgian chocolate maker to create Fireside Edibles Chocolates, and has launched the products in Ontario, British Columbia and Alberta.

Fool contributor Stephanie Bedard-Chateauneuf has no position in any stock mentioned.


David Jagielski: Kirkland Lake Gold Ltd

Kirkland Lake Gold (TSX:KL)(NYSE:KL) is my stock pick for March. The stock has been struggling to start 2020 but it could finish the year a whole lot differently. With a rail blockade wreaking havoc on Canada and the COVID-19 virus impacting the global markets, the economy could be headed for a significant downturn later this year.

A slowdown in the economy makes gold and gold stocks look very attractive, as they’re typically popular when risk in the markets is high. The price of gold is already up over US$1,600/oz and it could go even higher in the weeks and months ahead. That’s great news for gold miners like Kirkland Lake and with the company coming off a strong earnings report and looking to buy back more of its shares, there’s plenty of reason to be bullish on this gold stock.

Fool contributor David Jagielski owns shares of Kirkland Lake Gold Ltd.


Karen Thomas: Agnico Eagle Mines Ltd.

As I write my top stock pick for March, global markets are falling on coronavirus fears and I am becoming even more convinced that defensive is the way to go.  That’s why I’m recommending Agnico-Eagle Mines (TSX:AEM)(NYSE:AEM).

In times of fear and worry, gold stocks have traditionally outperformed as investors flock to them for a safe haven.  But this is not the only reason for my recommendation. Agnico Eagle Mines is a company that has a very solid track record, and a very solid future that is underpinned by strong expected production growth and rising gold prices.

The company is a leading gold producer with assets in politically safe areas such as Canada and Europe.  The company has consistently demonstrated operational excellence, and today, production from the company’s two new mines is being ramped up, and this should drive production growth of approximately 23% from 2018 to 2020.

Fool contributor Karen Thomas owns shares of Agnico Eagle Mines Ltd.

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