3 Top Canadian Stocks to Buy in Spring 2021

Here are three of my top picks that I’d invite long-term investors to take a close look at right now.

| More on:
Daffodils in bloom

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

For investors looking to make some moves this spring, there are some excellent options on the TSX right now. Indeed, these three stocks have been on my radar for quite some time. Indeed, I believe that now would be the ideal time for every investor to consider adding these stocks to their portfolios.

WPT Industrial REIT

In my view, industrial real estate is the ideal real estate sub-sector that investors should be considering right now. Other classes — for example, office or retail — might be negatively impacted as we near the end of the pandemic. However, I believe that there’s room for optimism today in relation to industrial real estate, as it is a pillar of the e-commerce revolution.

For investors who are interested in this sector, WPT Industrial REIT (TSX:WIR.U) remains one of my top picks. It appears that the market has yet to recognize this company’s high-quality asset base, as it has a valuation multiple of five times its earnings. Indeed, this stock is seriously undervalued right now. Furthermore, it has a dividend yield of more than 4.6%, which is among the highest in the industrial real estate space.


Let’s face it; Shopify (TSX:SHOP)(NYSE:SHOP) is not cheap. It trades at a valuation multiple in the nosebleeds. However, there are valid reasons as to why this tech stock is so expensive.

After all, there are few other growth stocks that can measure up to this Ottawa-based tech giant. Shopify operates in the high-growth e-commerce segment. It’s the premier provider of a software platform, which has almost become ubiquitous among retail of late.

That said, a growth-to-value rotation has hit Shopify’s share price hard of late. As bond yields continue to inch higher and inflation expectations pick up, Shopify has been hit in the cross-fire.

However, I have no doubt that Shopify’s long-term growth thesis will stand strong over the next few decades. Indeed, such price fluctuations should not be concerning for investors, as Shopify has a proven track record of recovering from previous such headwinds. Accordingly, for investors who are looking to buy growth stocks at a discount to their all-time highs, Shopify certainly remains one of my top picks.

Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) stock remains one of my top picks for long-term conservative investors. Although shares of this company fell to the $50 mark during the pandemic, this bank stock has made a strong recovery since then. As of today, this stock trades around $82. Indeed, it has generated returns of more than 50% over the past year and gained plenty of momentum.

Additionally, it appears that TD Bank stock may have more room to run yet. Net interest margins have improved along with credit quality. Loan-loss provisions will continue to be removed from TD’s balance sheet, and the company has excellent liquidity ratios. Furthermore, with the economy set to reopen soon, lending growth for banks like TD could get a massive boost. Indeed, there’s a tonne of upside on the horizon for this company.

Currently, TD has a dividend yield of nearly 3.9%, which is much more attractive than fixed-income options today. For investors seeking both income as well as defensiveness, this is a great pick.

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. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

More on Dividend Stocks

funds, money, nest egg
Dividend Stocks

TFSA Passive Income: 2 Great Canadian Dividend Stocks for Retirees to Buy Now

Retirees seeking reliable passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

data analyze research
Dividend Stocks

Earn Monthly Passive Income: 2 Hot Dividend Stocks in Canada to Buy Now and Hold Forever

These two hot dividend stocks could help you to earn stable monthly passive income in Canada.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Be a Landlord: Top 2 REITs (With Monthly Dividends) I’d Buy and Forget

You can be a landlord and earn monthly dividends for the rest of your life. All you need is the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Got $5,000? 3 Stocks to Hold for the Next 20 Years

New investors don’t need tens of thousands to start a portfolio. Here are three stocks to hold for the next…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

Earn $370 Every Month with These 3 Dividend Stocks

These three Canadian dividend stocks could boost your passive income.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Dividend Stocks to Buy Hand Over Fist

Investing in dividend stocks could help you reach a comfortable retirement. Here are three stocks to start buying hand over…

Read more »

Retirement plan
Dividend Stocks

4 Stocks That Could Turn $100,000 Into $500,000 by the Time You Retire

Companies such as Brookfield Asset Management have the potential to consistently beat the broader markets and deliver stellar returns to…

Read more »

money while you sleep
Dividend Stocks

Need Passive Income? 2 TSX Stocks to Earn $500/Month Without Losing Sleep

By investing in Enbridge and Keyera stock, investors can make $500/month.

Read more »