3 Best TSX Stocks to Buy Today with $1,000

TSX stocks: Markets have rallied around 50% in the last 12 months. They still have some steam left. Consider them for the long term.

| More on:
sad concerned deep in thought

Image source: Getty Images

Last year was all about staying at home and hoping for the pandemic to end. This year will be about vaccinations, economic recovery and re-openings. This should bode well for TSX stocks at large, which was highlighted in the recent quarterly earnings season. If you are still not in the market, you have still not missed the bus. Consider these three Canadian bigwigs to buy for the long term.

Enbridge

While TSX energy stocks have soared about 150% in the last 12 months, midstream energy titan Enbridge (TSX:ENB)(NYSE:ENB) is up just 15%. However, Enbridge is a low-risk, slow-moving stock that shows a lower correlation with energy markets at large.

The laggard Enbridge stock remarkably stands tall when it comes to shareholder payouts. It offers a juicy dividend yield of 8% at the moment, more than double the TSX stocks’ average. Notably, its reliable dividends play a vital role as a safe-haven when markets turn rough. Investors take shelter in handsome dividend-paying stocks like ENB amid increased market volatility.

Enbridge generates a large portion of its earnings from low-risk, fixed-fee operations. This makes its earnings less volatile and enables stable dividends. Enbridge has managed to increase its dividends for the last 26 consecutive years. Investors can expect consistently growing dividends from ENB for the long term due to its low-risk operations and growing distributable cash flow.

Nuvei

Tech stocks were notably weak recently as bond yields surged — and tTop fintech stock Nuvei (TSX:NVEI) was no exception. It fell more than 20% in the last few weeks and is currently trading at $71.

Nuvei, one of the fast-growing payment processing companies, reported solid quarterly numbers last month, which drove its stock notably higher. Its growing customer base and bright growth in its e-commerce vertical cheered investors. For Q4 2020, the company reported revenue growth of 46%. It returned to profitability against a loss in Q4 2019.

Payment processing is one of the sweet spots in the fintech space. Nuvei has strong growth prospects mainly due to its global presence and an edge in the sports betting area. The legalization prospects for sports wagering in the US look good, which could open a significantly bigger market for Nuvei.

Its diversified revenue base and a large addressable market make Nuvei an appealing growth stock at these levels.

Fortis

After a growth stock, let’s discuss another stable dividend payer: Fortis (TSX:FTS)(NYSE:FTS). It is a top utility stock that yields 3.7% at the moment.

Fortis is one of the biggest utility companies in North America. It gives away 75% of its profits to shareholders in the form of dividends. Interestingly, such a high payout ratio is not unusual among utilities, as they have highly predictable capital needs and earnings.

Stocks like Fortis are recession-resilient and outperform broader markets in very long periods. In the last two decades, FTS stock returned approximately 14% average per year while the TSX Composite Index returned an embarrassing 4%.

Fortis intends to increase its dividends by 5% per year for the next few years. I think such a dividend growth visibility is highly valuable amid the market volatility these days. Its stable earnings profile and consistently growing dividends offer decent total return prospects for long-term investors.

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. The Motley Fool recommends FORTIS INC.

More on Dividend Stocks

thinking
Dividend Stocks

Should You Buy BCE Stock for its 8.6% Dividend Yield?

Down over 20% from all-time highs, BCE stock offers you a tasty dividend yield in 2024. But is the TSX…

Read more »

grow dividends
Dividend Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

Here's how high-quality TSX dividend stocks and the power of compound interest can help grow your investments by 400% or…

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

These two stocks may be the most expensive on the market, but they're high for a reason! And I'm still…

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

Invest $374.50 Each Month to Create Passive Income of $288 in 2024

Investing a specific amount each month to create passive income this year is possible with monthly dividend payers.

Read more »

Happy retirement
Dividend Stocks

2 Stocks to Help Turn $100,000 Into $1 Million

If you want to reach $1 million, $100,000 can certainly get you there. Even if you invest in some low…

Read more »

warning or alert
Dividend Stocks

Income Alert: These Stocks Just Raised Their Dividends

There's no shortage of companies that raised their dividends recently. Here's a trio of options to consider buying now.

Read more »

Business success with growing, rising charts and businessman in background
Dividend Stocks

Don’t Look Now, But These 3 TSX Stocks Look Poised for a Nice Rally 

Three TSX stocks are in a downtrend amid headwinds. 2024 may be rocky for them, but they are poised for…

Read more »

protect, safe, trust
Dividend Stocks

3 Safe Dividend Stocks to Beat Inflation

These three dividend stocks are excellent buys to beat inflation, given their solid underlying businesses and high yields.

Read more »