The stock market seems to be pretty optimistic about the future despite the current challenges. Investors shouldn’t be shy to invest in some top stocks. The COVID-19 pandemic has impacted some industries more than others, meaning there are still some great stocks to buy.
Here are three top stocks to buy on the Toronto Stock Exchange before the year ends.
A fantastic utility company
Emera (TSX:EMA) fell to $42.12 during the March market sell-off from a 52-week high of $60.94. As of Friday, investors traded the stock for $54.60 per share. The annual dividend yield is fantastic at 4.67%.
Emera is a gas and electric utility company. Emera reported its third-quarter 2020 financial results on November 13. Unlike many firms these days, Emera is actually doing very well for itself.
Emera CEO Scott Balfour says the COVID-19 pandemic has not changed the company’s plans of increasing delivery of clean energy:
“Our businesses have continued to focus on safely delivering for our customers during the challenges of the COVID-19 pandemic. Over 60% of our updated capital program is focused on improving reliability and delivering cleaner energy. Our continuing investments are driving a forecasted 50% reduction in GHG emissions and an 80% reduction in coal generation in 2023 as compared to 2005 levels.”
Net income attributable to common shareholders has increased versus 2019. For the nine months ended September 30, net income was $665 million versus $470 million for the same period in 2019. Combined with a great 4.63% dividend yield, this is definitely a top stock to buy before the year ends.
A top bank stock
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) fell to $49.01 during the March market sell-off from a 52-week high of $77.17. At the time of writing, investors are trading the stock for $70.94 per share. The annual dividend yield of 4.45% would add great income to a retirement portfolio.
Toronto-Dominion Bank will release fourth-quarter earnings on December 3. Despite worries about increased default rates this year, the bank is still doing pretty well considering.
In fact, this stock is probably one of the safest on the Toronto Stock Exchange. This is one of the most powerful banks in Canada and it is well prepared to handle the storm from the pandemic.
While true, the bank did advise shareholders that it expects a 4.3% contraction in global real gross domestic product (GDP) this year. If you own any stocks in your retirement portfolio, it might be worth checking out the bank’s economic summary and outlook in its next earnings press release.
A fantastic dividend yield
Power Corporation of Canada (TSX:POW) fell to $17.47 during the March market sell-off from a 52-week high of $35.15. On Thursday, investors were trading the stock for $29.81 per share. The annual dividend yield of 6.00% is the higher out of these three stocks.
Power Corporation of Canada owns businesses in financial services, asset management, and renewable energy all over the world.
Power Corporation reported third-quarter of 2020 financials on November 11. Like Emera and Toronto-Dominion, Power Corporation is doing well this year despite the health crisis.
Net earnings attributable to participating shareholders were $505 million, compared with $359 million in 2019. Adjusted net earnings attributable to participating shareholders were $438 million, compared with $308 million in 2019.
This is definitely a strong, long-term winner for any Tax-Free Savings Account or Registered Retirement Savings Plan — and is therefore is one of the top stocks to buy before the year ends.
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Fool contributor Debra Ray has no position in any of the stocks mentioned.