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Best Canadian Stocks: 3 to Watch

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The TSX is home to many great stocks ideal for long-term investing. The best Canadian stocks for long-term investing combine both share price and dividend growth to deliver value to investors.

Usually, investors are looking for the highest returns over time. However, individual investors have different preferences according to their investment window and risk tolerance.

There are a few top stocks that are among the best Canadian stocks for various reasons. These are the stocks that should be of interest to investors, and finding the one that fits their needs is the path to long-term investing success.

Today, we’ll look at three such stocks that are huge TSX names with great return potential.

Telus

Telus (TSX:T)(NYSE:TU) is a massive Canadian telecom corporation that offers various telecom products and services through its subsidiary Telus Communications.

This is one of the best Canadian stocks, because it consistently offers strong growth potential combined with a handsome dividend. Its diverse range of revenue sources and strong footing in the Canadian market afford it the opportunity to do this.

As of this writing, T is trading at $26.79 and yielding 4.72%. When investors can scoop up a nearly 5% yield with a stock like T, it’s worth taking note.

This is one of the best Canadian stocks in the telecom space, because it has a wide range of offerings beyond just telecom as well, such as digital healthcare through Telus Health. Investors looking for a high growth top TSX stock should check out T.

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TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is a major Canadian bank stock with a massive presence in both the U.S. and Canada.

TD’s geographic diversification is just one of the reasons it is one of the best Canadian stocks. It also offers a wide range of products and has a strong cushion of liquidity to rely on in tough times.

All around, TD doesn’t exhibit a lot of weaknesses. It offers solid growth coupled with a juicy and remarkably reliable dividend to drive results over the long haul.

As of this writing, this banking giant is trading at $88.11 and yielding 3.59%. While that’s not the most eye-catching yield around, it’s still solid given it’s attached to a name like TD.

Investors looking to grab one of the best Canadian stocks in the banking space should keep an eye on TD.

Best Canadian stock for defensive investing

Fortis (TSX:FTS)(NYSE:FTS) is not only one of the best Canadian stocks, but it’s also a top choice for defensive investing.

This stock is highly resistant to market forces and is a remarkably stable stock. It offers investors a safe haven of sorts in turbulent markets.

This is all possible due to how Fortis structures its revenue streams. Namely, it provides its utility services almost entirely through regulated contracts.

As such, its revenue is stable, secure, and predictable. So, this translates to a reliable stock with little surprises in store for investors.

As of this writing, FTS is trading at $55.18 and yielding 3.66%. That’s a solid offering for investors looking for one of the best Canadian stocks for defensive investing.

Best Canadian stock strategy

These three names are among the best Canadian stocks to buy now. They each offer something unique to investors and can generate great total returns over time.

Three is a good start, but what about 10 top names?

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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 Jared Seguin has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC and TELUS CORPORATION.

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