3 Top TSX Stocks Under $50 to Buy Today

Here are three of my top picks I’d recommend investors keep on their watch lists right now.

| More on:
Various Canadian dollars in gray pants pocket

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

Stock market volatility appears to be picking up once again. Accordingly, investors are increasingly looking to diversify their portfolios to improve their risk-adjusted returns.

Indeed, there’s no time like the present to look at high-quality options. In this article, I’m going to discuss three of my top picks under $50 to consider today.

So, let’s get to it.


One of the preeminent pipeline players in North America, Enbridge (TSX:ENB)(NYSE:ENB) continues to find its way on my list.

And some investors might ask, why?

Indeed, political headwinds are strong in this sector. The Biden administration has not been friendly to pipelines. And the recent hack of the Colonial pipeline appears to have poured some cold water on the sector.

That said, Enbridge has been one of the most consistent performers this year in the market. The company’s extremely stable cash flows and yield of more than 7% make this stock perfect for long-term investors.

Yes, an energy transition is underway. However, until we get there, oil will need to be a part of our lives for decades to come. And Enbridge stands as one of the best ways to play this otherwise volatile commodity right now, in my view.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) has been on my list of top picks for quite some time now — and for various reasons.

This gas station and convenience store provider has a much more enticing growth model than most investors may expect at first glance. It’s a growth-by-acquisition play in a sector that isn’t known for great fundamentals. However, Couche-Tard has continued to pump out market-beating numbers for quite some time. This company happens to be an efficiency anomaly, providing cash flow growth that is the envy of its peers.

Accordingly, I view this stock as extremely undervalued today. Couche-Tard trades at roughly 13 times earnings at the time of writing. In such an overvalued market, this is an extremely attractive valuation.

With more growth likely on the horizon via more M&A activity, this is a long-term pick I’d recommend investors keep their eye on right now.

Spin Master

For long-term growth investors, Spin Master (TSX:TOY) continues to be a top pick of mine.

This toy maker has pulled in some very impressive growth over the past year. The company’s portfolio of children’s entertainment brands has allowed for such growth over time. And Spin Master has been making its move into the digital entertainment space in a big way of late. Indeed, this company’s digital gaming segment saw triple-digit growth this past quarter. That’s a sight to behold for growth investors.

Spin Master has been highly efficient at allocating capital and generating free cash flow. Should the company’s digital gaming portfolio continue to increase as rapidly as investors expect, I think more in the way of growth is on the horizon for this name.

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, Enbridge, and Spin Master.

More on Dividend Stocks

Volatile market, stock volatility
Dividend Stocks

2 Dividend Stocks to Own When the Market Is in Turmoil

Two TSX stocks can sustain dividend payments, even if the present market turmoil extends longer than expected.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Passive-Income Stocks to Help You Through This Market Correction

These three passive-income stocks offer stellar dividends around 6% to help get you to the other side of this market…

Read more »

Coworkers standing near a wall
Bank Stocks

Policy Rate: 2 More Hikes After July 2022 to Reach Neutral Level

The Bank of Canada might need three more rate hikes beginning in July 2022 to reach neutral levels.

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

3 Undervalued Dividend Stocks to Buy Right Now

Dividend-paying stocks such as Bank of Montreal offers investors the opportunity to generate outsized gains in the next year.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

RRSP Dividend Investors: 2 Top Oversold TSX Stocks to Buy for Total Returns

RRSP investors can pick up top TSX dividend stocks at cheap prices today and get a shot at some attractive…

Read more »

analyze data
Dividend Stocks

2 Safe Dividend Stocks That Could Help You Fight Inflation

A dependable stream of passive income is one way to help offset rising inflation rates. Here are two top dividend…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Stay Invested in a Recession: Increase Positions in 2 Value Stocks

The suggestion of market analysts is to increase positions in two value stocks if you want to stay invested amid…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Dividend Stocks to Buy as Inflation Surges in Canada

If you're worried about how surging inflation may impact your portfolio, here are three of the best dividend stocks to…

Read more »