3 Top Canadian Stocks to Buy Today

Here are three top picks for investors looking to take advantage of an economic recovery coming out of this pandemic.

| More on:
edit Businessman using calculator next to laptop

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The global economy is inching toward a recovery. Vaccine rollouts are picking up steam, and some pandemic-related restrictions are already being lifted. Accordingly, there’s some well-deserved anticipation that stocks could go on a nice run in 2021.

For those looking to take advantage of this scenario, here are three top picks to consider. These companies all have excellent leverage to the reopening thesis underpinning the stock market today. However, these are also great long-term holdings I’d recommend investors consider at any time.

Royal Bank

Canada’s largest bank, Royal Bank of Canada (TSX:RY)(NYSE:RY), provides a margin of safety its peers just can’t. Additionally, the fact that Royal Bank continues to yield more than 3.6% is an attractive proposition today, given where bond yields are.

Indeed, this bank has proven its stability in times of crisis in the past. The bank’s balance sheet remains strong, and this bank continues to be a strong defensive play for investors.

This has been supplemented by very strong earnings this past quarter. The bank managed to increase its overall profit by 10%, exceeding analyst predictions handily.

Royal Bank isn’t the cheapest big bank, but it’s expensive for a reason. Investors get quality with this name.


A long-term growth play that has slowed down of late is Alimentation Couche-Tard (TSX:ATD.B). This company continues to be one of the largest global players in the gas station and convenience store domain. It has gained this size through years of acquisitions, growing to a market cap of more than $40 billion today.

Though this retail play was hit hard with pandemic-related chaos, there is hope for this stock with the economy on its track of recovery. Gasoline demand remains depressed and will likely to be low for some time. However, as more cars hit the road, analysts expect Couche-Tard’s earnings to improve substantially over the medium term.

I also think that the company could continue to pursue acquisitions that would positively transform its structure over time. The recent failed bid for Couche-Tard is one I view positively in this light.

WPT Industrial REIT

As far as real estate investment trusts (REITs) go, industrial REITs are where it’s at today.

Industrial real estate provides the backbone of the logistics and warehousing infrastructure supporting the e-commerce boom. It’s a recession-resistant real estate class with tonnes of long-term growth upside.

Indeed, in this space, WPT Industrial REIT is one of my top picks. This REIT holds a portfolio of the highest-quality assets located close to city centres in North America.

Accordingly, for those bullish on the pandemic-related recovery, this is a top pick 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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC.

More on Dividend Stocks

oil tank at night
Dividend Stocks

1 Top TSX Energy Stocks for Summer 2022

TSX energy stocks have tanked recently, but they could enjoy a nice summer rally. Here's one top stock I'm eyeing…

Read more »

Dividend Stocks

Market Correction: 2 Cheap TSX Dividend Stocks to Buy Now for a Self-Directed RRSP

These top TSX dividend stocks look cheap right now for a self-directed RRSP focused on total returns.

Read more »

Target. Stand out from the crowd
Dividend Stocks

3 Dividend Stocks That Might Keep Pace With 7.7% Inflation

Three high-yield dividend stocks that might help investors keep pace with Canada’s 40-year-high inflation.

Read more »

value for money
Dividend Stocks

2 Canadian Stocks Trading at Unheard of Prices

Dirt-cheap stocks are a dime a dozen, but a few of them offer you a valuable opportunity, as they trade…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

Is Suncor Stock a Buy Right Now?

Suncor has delivered outsized gains to investors in 2022 and might continue to do so for the rest of the…

Read more »

Canadian stocks are rising
Dividend Stocks

3 Ways to Invest in Canadian Real Estate Under $20

Real estate can be a great way to make passive income, but you certainly don't have to invest a lot…

Read more »

grow dividends
Dividend Stocks

TFSA Wealth: 2 Oversold Canadian Stocks for a Retirement Fund

These top TSX divided stocks look attractive today for TFSA investors.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Create $1,487 in Passive Income From a Top TSX Dividend and Growth Stock

This top growth stock on the TSX today could bring in almost $1,500 in passive income and triple your investment…

Read more »