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

How are you playing the market rally? Here’s a portfolio idea that has three TSX stocks to outperform in all-weather markets.

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

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

A well-diversified portfolio has both aggressive and defensive stocks. The aggressive ones provide growth in bullish markets, while defensives offer stability during market downturns. Here’s a portfolio idea that has three TSX stocks to outperform in all-weather markets.

Nuvei

One of the top fintech stocks Nuvei (TSX:NVEI) seems unstoppable this year. It is already up about 55% so far this year and still has the potential to grow. Interestingly, there has been a flurry of positive developments for Nuvei in the last few months, from upbeat quarterly earnings to strategic acquisitions.

Last week, Nuvei announced the acquisition of U.S.-focused gaming and sports wagering payment technology company Mazooma Technical Services. Nuvei operates in 200 markets globally with 150 currencies and helps over 450 payment methods.

The legalization prospects for sports wagering in the U.S. look good, which could bring significantly bigger growth opportunities for Nuvei.

The company posted 46% year-over-year revenue growth in Q4 2020. It reported $21 million in profits in the same quarter against a loss in Q4 2019.

Enbridge

Very few Canadian stocks offer dividend stability like Enbridge (TSX:ENB)(NYSE:ENB) does. Its super-high yield of 7.2% pays decent passive income. It has increased shareholder payouts for the last 26 consecutive years. Notably, its dividend growth not only beat inflation, but also managed to increase dividends by a handsome 10% compounded annually for the last more than two decades.

Enbridge will likely continue to pay such reliable dividends for years. Its low-risk operations facilitate stable cash flows, which fund shareholder payouts. Enbridge intends to grow its dividends by 6% per year for the next few years.

Notably, the company has increased dividends in the 2008 financial crisis and amid the pandemic last year as well.

ENB stock is up almost 35% in the last six months. It is a relatively less volatile stock and offers decent growth prospects.

Air Canada

Air Canada (TSX:AC) could be an attractive reopening play for the post-pandemic world. It received a larger-than-expected bailout package last week. However, AC stock has come down by almost 25% since last month and now trades close to $23.

The flag carrier has burned billions of dollars of cash amid the stringent travel restrictions since last March. It was running out of cash and many experts feared bankruptcy for Air Canada. However, the financial aid from the Canadian government has come at the right time.

A $5.4 billion low-interest loan will help Air Canada weather the crisis even if the air travel demand remains weak for a prolonged period. Though the package will likely dilute Air Canada’s equity by around 10%, it addresses the short-term, bigger problem of liquidity.

After the financial aid, vaccinations could play a major role in Air Canada’s recovery. Faster inoculation is imperative to revive air travel demand and, ultimately, Canada’s airline industry. Notably, Air Canada looks well placed to benefit from the impending travel resumptions. If you are a long-term investor, AC stock can outperform and deliver stellar returns post-pandemic.

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.

More on Dividend Stocks

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now for Passive Income

Investors seeking quality passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

While these high-quality dividend stocks are oversold, they are some of the best stocks to buy for passive-income seekers.

Read more »