There’s one way for long-term investors to play the crashing market right now: keep buying top TSX stocks. There are some high-quality names selling for peanuts right now. Whether you have $5,000 or $1,000 to spend on your stock portfolio this month, here are five of the best Canadian stocks to build a position in.
The best Canadian stocks are crash resistant
With Fortis, you have the stability of the energy utilities sector. Fortis is a best-in-show stock with a 45-year track record of consecutive dividend payments. Its 3.7% dividend is reliable and makes this blue-chip name ideal for a retirement fund or TFSA-filler.
BCE is proving an exceptionally sturdy stock in the current climate. It’s got social distancing written all over it. In BCE, you have a wide-moat telecom play as well as in-home entertainment. There could hardly be a better stock to hold during a period of extended quarantine. Throw in a 5.8% dividend yield, and you have a richly rewarding play for passive income.
Loblaw Companies is also fairly self-explanatory. If you’ve had to go on a last-minute trip for toiler paper, painkillers, or sanitary items, you’ll know Loblaw is one of the best Canadian stocks for consumer staples exposure. It also has a strong online shopping element through its partnership with Instacart. Again, this supports a social distancing play.
Barrick Gold is a classic mix of the safe-haven qualities of gold and reliable passive income. The big gold name is up 17.3% in the last three months. Compare this with the TSX Composite Index’s loss of 23.4% loss over the same period. The world’s second-largest gold miner pays a 1.5% dividend yield. It’s also trouncing its competitors. Attractive fundamentals and classic safety add up to a strong buy.
A top TSX stock for infrastructure exposure
Finning International is a strong choice that might be getting overlooked at the moment. It’s a major supplier and renter of Caterpillar gear, though, and, as such, supports the resilience of the construction industry. Investors may have noticed that construction sites are still open. Even if they close, though, essential infrastructure repairs are a must. Maintenance stocks are recession-proof.
Indeed, a stock like Finning can be seen as a complementary play alongside a top TSX stock like Fortis. Infrastructure stocks, including such names as Badger Daylighting, can help diversify a portfolio while supporting a utilities thesis. Finning pays a 5.7% dividend yield, and while its outlook is a little mixed, it’s great value for money.
Leaving out the mixed outlook of Finning, total returns for this portfolio would be around 64% in five years, or $6,230 by 2025 from an equally split $4,000 investment. Looking for just one safe, high-returning stock? Barrick has the strongest projected five-year total returns at 85%.
The bottom line
There are some solid options for investors looking to invest $5,000 in five strong Canadian names in April. Among the best Canadian stocks on sale are Fortis, BCE, Loblaw, Barrick Gold, and Finning. This is a neat, five-stock miniature portfolio specially chosen for the challenges of the coronavirus market crash.
