Long-term investors should have nothing to fear despite near-term volatility in today’s market. TSX stocks continue to trade near 52-week highs, with the composite reaching all-time highs. Yet top Canadian stocks still offer value for those willing to invest and wait. So if you have $3,000, consider buying these TSX stocks today, and holding as long as you can.
It’s been an interesting year for Enbridge Inc. (TSX:ENB)(NYSE:ENB) and its investors. The company continues to trade at 52-week highs with the oil and gas rebound. Get there is still significant value for investors looking to get in on this top dividend stock.
Shares in Enbridge Stock are up 22% in the last year, and 137% in the last decade. That’s a compound annual growth rate (CAGR) of 9% during that time. Trading at all time highs, you would think that the stock is invaluable. You would be wrong. Enbridge stock currently trades at 1.8 times book value, and 2.5 times sales. That’s a value stock at anyone’s standards.
But what investors can really look forward to is future growth. The company has long-term contracts that will see it through decades of cash flow. On top of that, it has $10 billion in growth project set to come online in the near future. So not only can you look forward to that continued share growth, you can look forward to dividends from this Dividend Aristocrat. An investment of $1,000 in Enbridge stock today would bring in $70 in dividends as of writing.
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Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) continues to be one of the best choices if you want stability and dividends. This Big Six Bank is one of the top TSX stocks because it offers the highest dividend among the banks, as well as value.
The bank remains well within value territory trading at 1.5 times book value and 3.5 times sales. Net income has also remained stable during this time, most recently rising by 25% year over year. Meanwhile, shares are up 67% as of writing during the last year, and 154% in the last decade for a CAGR of 9.76% as of writing.
Going back to the dividend, CIBC stock offers a 4.57% dividend yield as of writing. That equals $5.84 per share per year. That’s by far the highest of the Big Six Banks. A $1,000 investment in CIBC stock today would bring in about $46.72 per year in dividends as of writing.
Finally, Shopify Inc. (TSX:SHOP)(NYSE:SHOP) currently offers investors an opportunity they don’t want to mess. The stock hit around $1,900 per share earlier this year. However, the pull back among e-commerce and tech stocks hurt the share price of Shopify stock. That’s despite there being no changes to the company itself.
Shopify stock continue to post impressive year over year revenue, even during its latest earnings report. The company saw about 100% growth in revenue year over a year during its latest earnings report, along with a 47% year-over-year increase in net income. While there might be a pull back right now, by next year this stock is likely to soar back to record heights.
Yeah, sign ups for its multi-channel e-commerce platform may slow, but it will continue to increase despite the economy opening yet again. Shopify’s expansion is well underway, as it continues to find multiple ways of bringing in revenue. Shopify stock’s international expansion, new products and strong balance sheet should all be fantastic reasons to pick up the stock. Especially for long term holders looking for TSX stocks to hold for years.
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.