2 Top Canadian Stock Ideas for June 2021

Here are two top Canadian stocks I’d recommend all long-term investors consider in this current investing environment today.

| More on:
Woman has an idea

Image source: Getty Images

Given the volatility we’re seeing in the market today, defensiveness and dividends should remain a top priority for investors today.

As it happens, the TSX is filled with promising companies providing both. However, selecting the ones that live up to expectations is quite a task. In this regard, I have got my eyes on two top Canadian stocks that have great potential to outperform over the long run.

Let’s dive into them.

Kirkland Lake Gold

Hands-down, Kirkland Lake Gold (TSX:KL)(NYSE:KL) is one of the top gold miners on TSX today. And from the standpoint of fundamentals, I feel this mining company is second to none.

The company’s balance sheet is in great shape, and its valuation is ridiculously cheap, considering where gold prices are today. Indeed, Kirkland Lake practically has no debt and continues to generate cash flow thanks to its superlative mining operations in Canada and Australia.

This company’s incredible cash flow generation has allowed the company to increase its dividend yield substantially of late. Should gold prices remain where they are or head higher, much more dividend growth could be on the horizon. Indeed, this makes Kirkland a lucrative bet for conservative investors and those looking to hedge their portfolios.

Gold is an inherently defensive space to invest. Buying high-quality miners like Kirkland Lake with premium assets is a great way to gain leverage to this trade. This remains my top pick in the gold space today for this reason.

Algonquin Power

It is not a secret anymore that Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is one of my top investment picks.

And for good reason.

This utilities stock does not just provide bond-like income. Algonquin also provides ample growth potential. In fact, its portfolio of premium quality renewable assets puts investors at an advantage today and gives this old-school stock a young and fresh vibe.

Judging by the current investment landscape, there is reason to believe Algonquin could pop big time. ESG-friendly investments are growing in an outsized fashion to traditional carbon-heavy investments in a big way. Algonquin’s positioning in this regard is the best in its class when compared to its peers.

Indeed, the company continues to earn nearly 35% of its total revenue from its renewable assets. At this pace, I think Algonquin could emerge as the perfect bet for the long term, especially for investors who wish to add aspects of growth and defensiveness to their portfolio.

Just like Kirkland, this stock is also trading at a dirt-cheap valuation relative to its growth potential. These are two stocks long-term investors can’t go wrong with today.

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.

More on Dividend Stocks

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

3 CRA Benefits Most Canadians Can Grab in 2024

You can save on taxes by claiming the dividend tax credit on Fortis Inc (TSX:FTS) shares.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »