The Motley Fool

The Golden Opportunity to Buy Stocks: Now’s the Time to Invest in These Top Stocks

Image source: Getty Images

Lately, it seems like the Canadian and U.S. stock markets have been going down 5-10% a day with the occasional relief rally. Since their all-time highs in February, the Canadian and U.S. stock markets have fallen about 30%. These kinds of market price action can be unsettling, especially for new investors.

However, let me reassure you that this is the golden opportunity to invest in stocks.

Now’s the time to invest.

When I say now, I mean over the next few months or even longer.

What’s weighing on stock markets?

What’s spooking the markets and investors is not so much the coronavirus itself, but the impact the attempts to combat the virus are having on the economy.

Many businesses are shut down. People are staying indoors, executing social distancing, and limiting social contact as much as possible.

We don’t know how long this will last for — probably until the curve flattens and when there’s a working vaccine. But we’re still in the very early stages of making one.

The curve has flattened in China, which is generally believed to be where the virus started. However, the total number of confirmed coronavirus cases continue to increase globally. In other words, it’s an exponential graph, and the flattening curve is nowhere in sight.

This is already a major blow to the global economies — the extensiveness of which no one knows.

Businesses will go bankrupt, and people will get laid off. And it spirals down from there.

Stocks to buy now: The golden opportunity

Thankfully, if you have been regularly saving, you now have the golden opportunity to become part-owners of wonderful businesses at basement prices.

At least over the next few months, you have the opportunity of locking in juicy yields from quality dividend stocks. Here’s a list and their yields as of writing:

  • Royal Bank of Canada: 5.2%
  • Toronto-Dominion Bank: 5.9%
  • Brookfield Infrastructure Partners: 6.7%
  • Fortis: 4%
  • Brookfield Renewable Partners: 6%
  • Enbridge: 9.2%
  • TC Energy: 6.3%
  • Brookfield Property Partners: 16%
  • BCE: 6.4%
  • TELUS: 5.4%

Let me warn you, though. Despite how enticing these high-yield dividend stocks look currently, they’ll likely trade lower over the next few months. However, no one will know when the market will bottom. So, it’s best to average into your positions over time.

For example, if you plan to invest $10,000 in one stock, opt to put in $2,000 or $2,500 each time at preset yield points. This is to prevent putting too much money in at a time when the sky seems like it’s falling on the markets.

Here are other quality dividend stocks that are more growth focused.

  • Alimentation Couche-Tard
  • Brookfield Asset Management
  • Canadian National Railway
  • Canadian Pacific Railway
  • Interrent REIT
  • Open Text
  • Shopify
  • TMX Group

Similarly, consider averaging into growth stocks at specific price ranges over time. Perhaps buy some now. And buy some more when it falls another 20% lower, and another 20% lower, etc.

The Foolish bottom line

This is a market crash. Now is the best time to invest in stocks. Over the next few months, perhaps, even longer, average into your best stock ideas.

Consider reviewing your stock shopping list after the market closes, so you have a clearer head to set the price ranges to buy at. Remember to diversify your portfolio so that you don’t put all eggs in one basket.

You’ll look back 10 years later and see this bear market as the golden opportunity to invest. What are your most high-conviction best ideas?

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

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 Kay Ng owns shares of ALIMENTATION COUCHE-TARD INC, BROOKFIELD ASSET MANAGEMENT INC. CL.A LV, Brookfield Infrastructure Partners, Brookfield Property Partners, Enbridge, Shopify, and The Toronto-Dominion Bank. David Gardner owns shares of Canadian National Railway. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Brookfield Asset Management, Canadian National Railway, Enbridge, Shopify, and Shopify. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC, BROOKFIELD ASSET MANAGEMENT INC. CL.A LV, BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, Brookfield Property Partners LP, Canadian National Railway, Open Text, OPEN TEXT CORP, and TMX GROUP INC. / GROUPE TMX INC.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.