Got $500? 3 Top TSX Stocks to Buy Right Now

Are you sitting on extra cash? Consider these three top TSX stocks for outsized gains in the long term.

| More on:
Stand out from the crowd

Image source: Getty Images

Long-term investors should not worry much about the short-term chaos. Even if the markets remain volatile in the near term, top TSX stocks will likely outperform and deliver decent returns to shareholders in the long term. Here are three Canadian stocks to buy for the long term.


A payment-processing company stock, Nuvei (TSX:NVEI) has been notably weak recently and lost 25% since last month. However, almost all high-growth tech stocks felt the heat and were weak during this period.

Nuvei reported its fourth-quarter results today. It posted revenue growth of 46% year over year against an average growth of 75% in the earlier two quarters. Notably, the stock could well rally, despite weaker revenue growth, driven by the company’s profitability in Q4.

Additionally, Nuvei’s expanding customer base and promising growth in its e-commerce segment could also encourage investors. The company reported a loss of $103.7 million for the full year 2020.

Payment processing is already one of the fastest-growing areas in the fintech industry. Interestingly, Nuvei is even more interesting, mainly due to its focus on sports betting and allied domains.

The U.S. could be its biggest opportunity with rising sports betting legalization prospects. Nuvei operates in 200 markets worldwide with 150 currencies and supports over 450 payment methods.

Nuvei stock is currently trading close to $61, close to its four-month lows. It looks a tad stretched from the valuation front. However, attractive growth prospects and Q4 earnings could drive the stock higher.


Along with growth, you should have some exposure to safe, dividend-paying stocks in your portfolio. Investors can consider Enbridge (TSX:ENB)(NYSE:ENB) for the same. It is one of the biggest, top-yielding stocks in Canada.

ENB stock yields 8%, more than double the TSX stocks’ average. If you invest $100 in ENB, you will get $8 in dividends every year. Importantly, as the company increases its profits, investors can expect dividends to increase as well. Enbridge has increased dividends for the last 26 consecutive years.

Although Enbridge is an energy company, it has stable earnings and offers dividends to shareholders. That’s mainly because it is a pipeline company and has lower exposure to volatile oil and gas prices. Its long-term, fixed-fee contracts make its earnings predictable and stable.

If you are looking for decent passive income for a very long term, consider Enbridge.

Premium Brands Holdings

A $5 billion Premium Brands Holdings (TSX:PBH) is one of the leading names in Canada’s food processing industry. It owns and operates popular brands like Harvest Meats, Piller’s, Freybe, Expresco, and Deli Chef, etc.

Premium Brands stock has returned more than 1,000% in the last decade, notably beating TSX stocks at large. A strong product portfolio and premium food distribution business drove the company’s superior growth.

Interestingly, Premium Brands could see higher demand post-pandemic once restrictions gradually wane. It aims to achieve $6 billion in revenues by 2023, suggesting a handsome compounded annual growth rate of 15%.

PBH stock is currently trading at $110, close to its all-time high of $120 in April 2018. The stock looks a tad overvalued at the moment. However, its higher growth potential and hopes of normalcy could continue to drive the stock higher.

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 Vineet Kulkarni has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

More on Dividend Stocks

edit Sale sign, value, discount
Dividend Stocks

3 Top Dividend Stocks That You Can Buy Under $50

The global equity markets have turned volatile over the last few weeks amid the fear that the U.S. Federal Reserve …

Read more »

ETF chart stocks
Dividend Stocks

3 TSX ETFs to Buy for Big Dividends

Dividend-paying exchange-traded funds (ETFs) are excellent investment options for passive investors. Apart from instant diversification, would-be investors earn in two …

Read more »

grow dividends
Dividend Stocks

3 of the Best Dividend Growth Stocks That Money Can Buy

Long-term investing has several advantages, which is why so many well-known investors like Warren Buffett recommend it as a strategy. …

Read more »

investment research
Dividend Stocks

3 Cheap Canadian Stocks to Buy Now Before the Dividend Deadline!

Motley Fool investors have been searching high and low for safe stocks in this volatile market. The TSX today doesn’t …

Read more »

Glass piggy bank
Dividend Stocks

How to Accelerate Your TFSA Returns From Dividend Stocks

The stock market saw a correction in January, as investors booked profits ahead of the central bank’s interest rate hikes. The TSX …

Read more »

money cash dividends
Dividend Stocks

Top 3 Dividend Stocks in Canada for 2022

Canada is home to some of the best dividend stocks in the world. With finance, telecoms, and energy dominating the …

Read more »

calculate and analyze stock
Dividend Stocks

2 Top TSX Stocks to Put on Your TFSA Buy List

TFSA investors are searching for undervalued TSX stocks to buy that have the potential to deliver big gains in 2022. …

Read more »

Payday ringed on a calendar
Dividend Stocks

Get Unbelievable Monthly Income With High-Yield Dividend Stocks

The only thing better than a dividend stock is a stock that pays dividends every month. For people who live …

Read more »