Canadian stocks have been pushing higher over the past few months. Yet, there has also been a fair share of volatility in the mix. If oil stocks are doing well on news about inflation, technology and dividend stocks are lamenting. The Federal Reserve remains dovish, but bond yields keep rising. Frankly, it’s impossible to predict what will happen tomorrow, next month, or even next year.
Patience and time in the market are your best ally for success
All I know is that patience and time in the market are an investor’s best ally in times like these. Similarly, owning a diversified portfolio of stocks is key to navigating uncertain times. While one sector might lag, another might outperform.
Over time, this collective mix should help balance out your losses and propel you to a well-rounded horizon of long-term wealth. Keeping this in mind, here are four great Canadian stocks that could give you a balanced mix of growth, income, and value today!
A top Canadian stock for forever
Constellation Software (TSX:CSU) is not just a good Canadian stock, it is great. It is one of the best performers on the TSX over the last decade. While past performance won’t determine the future, it is good evidence that the company has something special.
Constellation consolidates vertical management software (VMS) businesses across the world. It capitalizes these businesses and helps them become highly profitable, cash-producing businesses. It then takes that cash and repeats the cycle in new businesses.
The company has recently committed to becoming more aggressive, particularly in larger entities and new verticals. While growth may be slowing, it is still very active. I believe long-term, patient investors have a very good chance of success by tucking this Canadian stock away.
A great Canadian dividend stock
Another great Canadian stock is Brookfield Infrastructure Partners (TSX:BIP-UN)(NYSE:BIP). BIP owns infrastructure assets across the globe. These are essential asset that fuel everyday life for millions of people. I’m talking cell towers, data centres, ports, railroads, pipelines, power lines, and natural gas processing plants.
This is a great stock to buy and hold forever. Infrastructure in most countries is ageing and government’s no longer have the balance sheet to pay for upgrades. Consequently, private players like BIP should have ample opportunities to privatize assets and turn them into cash flow machines for shareholders. The stock pays a great, growing 3.9% dividend, so it is a perfect bet on income and growth.
E-commerce real estate
If you want to own top-quality real estate, but don’t have the capital mass to buy it yourself, Granite REIT (TSX:GRT-UN)(NYSE:GRP-UN) is a perfect Canadian stock. It owns institutional quality industrial real estate across Canada, America, and Europe. It allows investors to literally own a stake in some of the world’s most attractive logistics and e-commerce-focused properties.
If you believe e-commerce is going to grow for many years to come, you can believe that Granite will continue to do well. It pays a nice 4% dividend that it just raised 5% last year. It has a great balance sheet, low debt, and ample opportunities for expansion, particularly in Europe. All of this makes this Canadian dividend stock an attractive buy today!
A cash king
Enghouse Systems (TSX:ENGH) is another Canadian technology stock success story. This stock has really gone nowhere over the past six months. Yet, the company quarter-after-quarter is incredibly profitable and produces massive amounts of free cash flow. I’m talking a 30% free cash flow margin!
There is some concern that its acquisition pipeline and growth prospects have slowed (largely due to pandemic-related issues). However, the company has almost $200 million in cash, zero debt, an expert team of capital allocators, and very healthy cash flow production. For a long-term patient investor, this just screams a buy today!
Speaking about stocks with long-term upside. This report is for you!
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!
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 Robin Brown owns shares of Brookfield Infrastructure Partners, Constellation Software, Enghouse Systems Ltd., and GRANITE REAL ESTATE INVESTMENT TRUST. The Motley Fool owns shares of and recommends Constellation Software. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, Enghouse Systems Ltd., and GRANITE REAL ESTATE INVESTMENT TRUST.