3 Top Stocks to Buy in November 2020

Want defence, growth, or income? Don’t miss these top stocks to buy in November 2020.

Gold medal

Image source: Getty Images.

Are you worried about a renewed European economic lockdown or the uncertainties that the U.S. presidential election will bring?

If you’re finding it difficult to navigate your stock portfolio in today’s environment, you can consider three top stocks to buy in November 2020.

Gold stocks

Gold stocks are the place to invest in during times of uncertainty and, of course, times of money printing. Central banks around the world are printing more money than ever to supply what’s needed for relief programs against COVID-19. The uncertainty and money printing have driven gold prices higher.

Gold miners are expected to make hefty profits this year. That’s why Barrick (TSX:ABX)(NYSE:GOLD), Newmont (TSX:NGT)(NYSE:NEM), and Agnico Eagle (TSX:AEM)(NYSE:AEM), respectively, have quarterly dividends that are 100%, 186%, and 100% higher year over year.

Their dividends are also supported by their free cash flow. In the trailing 12 months, their payout ratios, based on their free cash flow, are about 25%, 25%, and 93% respectively.

Because gold prices are expected to stay high in the near term, it’d be good to have some gold stocks in one’s portfolio right now to participate in the gold bull market. Over the next 12 months, analysts believe Barrick, Newmont, and Agnico Eagle have upside potential of about 31%, 27%, and 20%, respectively.

Despite the recent strong dividend growth, Barrick, Newmont, and Agnico Eagle only offer dividend yields of about 0.6%, 2.6%, and 1.8%, respectively. For greater income, you can consider the following dividend stocks instead.

Attractive dividend stocks for income

From large to small cap, energy infrastructure stocks like TC Energy (TSX:TRP)(NYSE:TRP) and Keyera (TSX:KEY) are attractively priced for big dividend income.

TC Energy has a market cap of about $49 billion, while Keyera’s is north of $4 billion. Despite a massive selloff with TRP stock down 24% and Keyera down 44% year to date, indicating real impacts to their industries from the pandemic, impressively, both have maintained their dividends thus far.

The market gives a hint that Keyera is a riskier investment, as it demands a bigger yield from Keyera. TC Energy and Keyera currently provide large dividend yields of nearly 6.2% and 10.2%, respectively.

On a turnaround, both can deliver some awesome price appreciation on top of the dividends. They have 12-month upside potential of 35% and 44%, respectively, according to the average analyst price targets.

Proven growth stocks

The U.S. and Canadian markets just began correcting last week. It’s a good time to review proven stocks that deliver long-term growth like Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM).

BAM is an international leader in alternative asset management with about 2,000 assets across 30 countries. Uniquely, it invests in a diversified set of assets, such as renewable, infrastructure, and real estate, and provides operational expertise to create value and enhance cash flow generation.

The selloff of more than 33% in BAM stock is an incredible opportunity to accumulate shares in the growth stock. It aims for total returns of 12-15% in the long run. Therefore, by buying shares when it’s cheap now, investors should realize even greater gains. Analysts estimate the growth stock has 12-month upside potential of 42%.

The Foolish takeaway

Attractive gold stocks, big dividend stocks, and growth stocks are good places to invest in November. The market selloff from last week may not be over, though. So, don’t be hasty in deploying all your cash immediately. Instead, if you like these stocks, build positions in them over time.

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 Brookfield Asset Management, TC Energy, and Newmont. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and KEYERA CORP.

More on Dividend Stocks

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

Payday ringed on a calendar
Dividend Stocks

3 Dividend Stocks That Pay Me More Than $54.57 Per Month

These three dividend stocks have done me well over the years, so let's look at how much I've gotten in…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Royalty: 3 Fabulous Stocks to Buy Now for Decades of Passive Income

Rogers Communications stock and Canadian Natural Resources stock could pay you dividends for decades to come.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »