The Canadian market is close to reaching the exact same point that it began this year. After an extremely volatile eight months, the S&P/TSX Composite Index is now down just 3% on the year.
The extreme levels of volatility led to a 35% drop in just over one month, which was then followed by an incredible run of close to 50% over the next five months.
There’s no question that there’s plenty of uncertainty in the near term for the Canadian market. But for long-term Foolish investors that have time on their side, there will be companies that exit this tumultuous year with a stronger market position than when they had entered 2020.
I’ve covered three top TSX stocks trading in the Canadian market today. I believe that each has the potential to deliver market-beating returns for patient buy-and-hold investors.
Travel stocks have unsurprisingly not fared particularly well throughout this pandemic. Canadian travel companies, such as Air Canada, have seen share prices get slashed, as the majority of air travel abruptly came to a halt earlier this year. Cargojet (TSX:CJT), however, has grown close to 75% since the beginning of the year.
The $3 billion company is an air cargo service provider to both consumers and businesses across North America, with a specialization in providing time-sensitive overnight shipments.
Year to date, the company has seen a drop in demand from the business-to-business division. The drop has been largely offset, though, by an increase in consumer shipments from the healthcare and e-commerce segments.
Enbridge (TSX:ENB)(NYSE:ENB) has not enjoyed the same type of bull run that Cargojet has over the past several months. The energy company has seen its stock price take a major hit from the headwinds in the oil and gas sector this year.
The stock may be down 15% on the year, but I see this as a buying opportunity for long-term investors. The company is extremely well diversified within its business mix and is in a strong financial position with regards to its balance sheet.
Enbridge can also provide investors with a dividend equal to a yield of close to 7.5% at today’s stock price. The stock currently pays shareholders an annual total of $3.24 per share.
Royal Bank of Canada
To round out my three picks I’ve reviewed Canada’s largest bank, Royal Bank of Canada (TSX:RY)(NYSE:RY). Valued at a market cap of $140 billion, RBC was the largest company in Canada until Shopify claimed the number one spot earlier this year.
Similar to Enbridge, RBC benefits from having a well-diversified portfolio of revenue streams. The company not only offers a wide range of products and services to its consumers, but it also offers shareholders diversification geographically as well.
Although this dividend yield might not be as high as 7.5%, a yield of 4.4% is nothing to complain about. RBC is also one of the most reliable dividend payers you’ll find on the Canadian market. The Dividend Aristocrat currently pays shareholders $4.32 annually per share.
Foolish bottom line
You could definitely argue that there is lots of uncertainty within the short-term view of the Canadian market. But for long-term investors, that shouldn’t stop you from buying quality market-leading companies today.
Speaking of top TSX stocks to help you retire rich...
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!