Got $1,000? 3 Top TSX Stocks to Buy Right Now

Canadian investors can look to buy TSX stocks such as Enbridge (TSX:ENB) and Nuvei (TSX:NVEI) right now.

| More on:

Equity investing is a long-term play, and investors need to remain focused and disciplined, despite the underlying short-term volatility. You need to identify companies that have strong fundamentals that are likely to outperform the broader market and increase your wealth at a steady rate. We’ll look at three TSX stocks that should increase shareholder wealth in 2021 and beyond.

Enbridge

Shares of Enbridge (TSX:ENB)(NYSE:ENB) have still not recovered to its pre-pandemic prices. While Enbridge has underperformed in the last 12 months, the stock has a tasty forward yield of 7.2%. Enbridge is a Canadian energy heavyweight with a diversified base of cash-generating assets.

The company continues to invest heavily in expansion projects that allow it to increase cash flows and dividend payments over time. Since 1995, ENB has increased dividends at an annual rate of 10% making it one of the top picks for income investors.

While energy companies were decimated amid the pandemic due to low oil prices, Enbridge was rather immune to these fluctuations and even managed to increase distributable cash flow per share last year.

Enbridge has a contract-based business model and an investment-grade balance sheet, allowing it to generate stable cash flows across business cycles. If you invest $1,000 in ENB stock, you can derive $72 in annual dividends.

Nuvei

While Enbridge will provide you with steady returns, investing in fintech company Nuvei (TSX:NVEI) will help you derive exponential gains. Nuvei has a purpose-built technology platform that provides end-to-end solutions to customers. Its cloud-based, integrated, and customizable reporting dashboard provides real-time access to transaction metrics as well as other business intelligence data.

In the fourth quarter of 2020, the company reported sales of $115.9 million — an increase of 46% year over year. Its adjusted EBITDA was up 61% at $51.3 million, while adjusted net income soared to $46.5 million compared with just $5.4 million in the prior-year period.

The total gross transaction volume on the Nuvei platform increased 76% year over year in 2020 to $43.2 billion compared with $24.6 billion in 2019.

Nuvei attributed Q4 growth to wallet share expansion from current merchants and continued expansion of its direct distribution channel. The company added several new merchants in high-growth verticals that include online and social gaming, online retail, digital goods, and financial services.

TransAlta Renewables

The worldwide transition towards clean energy solutions is all set to accelerate in the upcoming decade, making companies such as TransAlta Renewables (TSX:RNW) top buys right now. Shares of TransAlta Renewables have more than doubled since the company went public in August 2013. Despite its impressive returns, the stock has a forward yield of 4.5%. So, an investment of $1,000 in RNW stock will help you generate $45 in annual dividends.

At the end of 2020, TransAlta owned 13 hydro facilities, 19 wind facilities as well as one battery storage facility, and another natural gas facility in Canada. The company aims to develop or acquire highly contracted renewable and natural gas power generation facilities as well as other infrastructure assets that will help it generate stable cash flows with the objective of achieving targeted returns on invested capital.

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.

The Motley Fool owns shares of and recommends Enbridge. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

More on Dividend Stocks

profit rises over time
Dividend Stocks

A Dividend Giant I’d Buy Over TD Stock Right Now

TD stock has long been one of the top dividend stocks for investors to consider, but that's simply no longer…

Read more »

analyze data
Dividend Stocks

Top Financial Sector Stocks for Canadian Investors in 2025

From undervalued to powerfully bullish, quite a few financial stocks might be promising prospects for the coming year.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

3 TFSA Red Flags Every Canadian Investor Should Know

Day trading in a TFSA is a red flag. Hold index funds like the Vanguard S&P 500 Index Fund (TSX:VFV)…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

1 Magnificent Canadian Stock Down 15% to Buy and Hold Forever

Magna stock has had a rough few years, but with shares down 15% in the last year (though it's recently…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Earn Steady Monthly Income With These 2 Rock-Solid Dividend Stocks

Despite looming economic and geopolitical uncertainties, these two Canadian monthly dividend stocks could help you generate reliable income in 2025…

Read more »

A worker gives a business presentation.
Dividend Stocks

2024’s Top Canadian Dividend Stocks to Hold Into 2025

These top Canadian dividend stocks are worth holding into 2025 to generate steady and growing passive income.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Magnificent Canadian Stock Down 12% to Buy and Hold Forever

This top stock may be down 12% right now, but don't see that as a problem. See it as a…

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $625 Per Month?

This retirement passive-income stock proves why investors need to always take into consideration not just dividends but returns as well.

Read more »