2 Perfect TSX Stocks to Buy Now

Molson Coors Canada (TSX:TPX.B)(NYSE:TAP) is the perfect stock to buy on the Toronto Stock Exchange before the year ends.

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The ongoing COVID-19 pandemic may have consumers and investors worrying about the future. Nevertheless, now is the best time to buy stocks on the Toronto Stock Exchange. There are many fantastic stocks heading back up in price.

Here are two great stocks to buy before the year ends.

Molson Coors Canada: A strong dividend yield

Molson Coors Canada (TSX:TPX.B)(NYSE:TAP) fell to $43.38 during the March market sell-off from a 52-week high of $82.50. As of Thursday, investors traded the stock for $60.95 per share. The annual dividend yield would be a great addition to your retirement portfolio at 4.89%.

Molson Coors Canada had some trouble this year. When restaurants struggled to get people in the door, beer sales declined. Non-restaurant sales of beer didn’t make up for the loss in revenue.

Even though the company has been having a difficult time, the CEO of Molson Coors, Gavin Hattersley, is proud of how well the team is addressing the impacts of COVID-19 on its businesses:

“We are very pleased with our performance in the third quarter, as we beat top and bottom-line expectations and made tangible progress on our revitalization plan. We had bold plans for our business at the beginning of 2020: to build on the strength of our iconic core brands, aggressively grow our above premium portfolio, expand beyond the beer aisle, invest in our capabilities and support our people and our communities.”

The company does seem to have done fairly well this quarter. Net sales only decreased by 3.1% versus the same quarter last year to $2.8 billion. Since the stock is still trading much lower than its pre-pandemic 52-week high, this is definitely one stock you want to buy before it rebounds.

Alimentation Couche-Tard: A reputable stock

Alimentation Couche-Tard (TSX:ATD.B)(TSX:ATD.A) fell to $30.40 during the March market sell-off before hitting a slightly higher 52-week high of $47.49. On Thursday, investors traded the stock for $42.97 per share. The annual dividend yield is small at 0.65%.

Alimentation Couche-Tard has been doing pretty well this year, despite the unprecedented circumstances. The company released results for its second quarter of the fiscal year 2021 financial on November 24.

Brian Hannasch, CEO of Alimentation, commented on the company’s convenience store sales growth during the quarter:

“Across our global network, we had a strong second quarter, both in our stores and on our forecourts, even with the continuing impact of COVID-19. New customers and associated share gains since the start of the pandemic have continued as consumers take advantage of the convenience and proximity of our locations. This led to solid same store sales growth of 4.4% in the U.S., 8.6% in Europe, and 11.4% in Canada.”

While fuel volume decrease by 15.5% in the U.S., 4.5% in Europe, and 11.8% in Canada, diluted net earnings per share increased by 32%. Alimentation announced diluted earnings of $0.66 per share versus $0.50 for the same quarter last year.

This is also one stock that you should consider purchasing before the year ends. It is a strong Canadian stock. While it is not trading lower than pre-pandemic levels like Molson Coors, the price-to-earnings ratio is still only 13.36.

Moreover, while the annual dividend yield may be low, investors can still find a lot of value in this stock.

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 Debra Ray has no position in any of the stocks mentioned. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC.

More on Dividend Stocks

protect, safe, trust
Dividend Stocks

3 Safe Stocks for Beginners Amid Rising Volatility

Given their stable cash flows and healthy growth potential, these three safe stocks are excellent buys for beginners.

Read more »

money cash dividends
Dividend Stocks

Market Correction: 2 Oversold TSX Dividend Stocks to Buy for Total Returns

These top value stocks pay attractive dividends and look cheap to buy for a TFSA or RRSP focused on total…

Read more »

Dividend Stocks

2 Undervalued TSX Dividend Stocks to Buy in July

These unloved TSX dividend stocks could deliver attractive returns in the back half of 2022.

Read more »

sad concerned deep in thought
Dividend Stocks

$20 Billion Telco Merger: More Concessions and Conditions Ahead?

The mediation process in the proposed telco merger could lead to more concessions and conditions before the competition watchdog grants…

Read more »

Dividend Stocks

RRSP Investors: 2 Cheap TSX Dividend Stars to Buy for Total Returns

RRSP investors seeking attractive total returns can now buy top TSX dividend stock with high yields at discounted prices.

Read more »

rail train
Dividend Stocks

Canadian Pacific Railway (TSX:CP): A Top Wide-Moat Stock to Buy and Hold Forever

CP Rail keeps the goods moving around the country. Here’s why it’s a great pick for new investors.

Read more »

Businessmen teamwork brainstorming meeting.
Dividend Stocks

The 3 Top Large-Cap Stocks for TSX Investors

Have peace of mind by investing in top large-cap stocks during this market correction. Start researching BAM (TSX:BAM.A)(NYSE:BAM)!

Read more »

Golden crown on a red velvet background
Dividend Stocks

3 Dividend Aristocrat Stocks to Buy and Hold Forever

Three Dividend Aristocrats are excellent holdings for new and old investors with long-term financial goals.

Read more »