Building a diversified portfolio is crucial for investors to maximize their risk-adjusted returns over time. The three options I’ll be talking about today are some of the best options on the TSX right now in terms of growth, value, and income potential. Indeed, these stocks are ones I’d suggest every investor put on their watch list today.
One of the primary reasons why Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) has been on my radar is its strong international presence. Indeed, this large Canadian bank is heavily exposed to emerging markets with impressive long-term growth upside. Thus, I think this bank has the potential to produce sector-beating returns over time. Key markets such as Latin America provide a level of growth developed markets won’t be able to touch over the medium to long term.
As with its peers, Scotiabank’s stock has been hit hard as a result of the pandemic. However, this stock has surged more than 50% since last year and is now trading around the $77 mark at the time of writing. In the fourth quarter, this bank surpassed analysts’ expectations, as the company reported solid earnings per share of $1.22.
Canada’s third-largest bank has a dividend yield well in excess of 4%, which is juicy given where bond yields are today. Furthermore, I think that this company has a prudent business model, which represents a tonne of growth potential over the long term.
Indeed, the company’s regulated utilities base ensures stable cash flow growth over time. However, the renewables portfolio of this company is an often overlooked, but important factor to consider with this utilities play today. Indeed, I believe this is why Algonquin is such a favourite among dividend-growth investors right now.
Over the past couple years, Algonquin has turned its growing cash flows into double-digit dividend increases for its shareholders. With a dividend yield around 4%, this stock is certainly an excellent option for investors to consider today.
For investors on the quest for the best growth stock on the TSX today, Restaurant Brands (TSX:QSR)(NYSE:QSR) is an excellent option. Some of the most popular banners of this holding company include Burger King, Tim Hortons, and Popeyes Louisiana Kitchen.
Over the past few years, the Tim Hortons banner has been lagging in terms of growth. Nevertheless, I think that there’s room for optimism today, as more acquisitions could be on the horizon. It has been quite a few years since this company purchased another banner. Hence, I believe that Restaurant Brands could try to reach for another deal over the medium term.
Absent a deal, this is still a great long-term growth pick. The company’s same-store sales growth in the Popeyes and Burger King brands speak to this. I think this is a great growth play at a reasonable price that every investor should consider today.
Like these top picks? Here are a few more to consider right now:
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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 recommends BANK OF NOVA SCOTIA and RESTAURANT BRANDS INTERNATIONAL INC.