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

Equities have been relatively stable and continue to offer decent prospects. Here are three top TSX stocks to consider for the long term.

| More on:
Businessmen teamwork brainstorming meeting.

Image source: Getty Images

Cryptocurrencies are falling, while inflation has surged to record levels. Notably, amid all this chaos, equities at large have been relatively stable and continue to offer decent growth prospects. Here are three top TSX stocks to consider for the long term.

Royal Bank of Canada

Canadian bank stocks will likely be one of the brightest areas among broader markets this year. Provisions for loan losses, which averaged around several billion dollars last year, should reverse this year, ultimately improving banks’ bottom lines.

Royal Bank of Canada (TSX:RY)(NYSE:RY), the biggest in the sector, is set to release its fiscal Q2 2021 earnings on May 27. The revenue and earnings growth will likely remain encouraging amid the stable economic recovery and surging capital markets. The highlight will be the loan-loss reserves.

Last year, amid the pandemic, Canadian banks turned a little too conservative and set aside billions for potential bad loans. However, aggressive stimulus spending and relatively faster recovery from the pandemic helped the economy, and bad loans were significantly lower than expected.

Canadian banks, including Royal Bank, should see a green light this year from the banking regulator to increase dividends, as their asset quality has remained strong. Royal Bank currently yields 3.5%, close to the industry average. Royal Bank’s scale and better credit quality should fuel a faster recovery post-pandemic.

Wheaton Precious Metals

As inflation has started to accelerate recently, the yellow metal will likely begin to shine even brighter. Thus, gold miner or streamer stocks could be an attractive bet in this inflationary environment.

Consider Wheaton Precious Metals (TSX:WPM)(NYSE:WPM). Unlike traditional miners, streamers offer a relatively better risk/reward proposition for investors. Streamers like Wheaton outsource mining operations and save big on capital investments, minimizing the mining and political risk.

Wheaton generates nearly 65% of its revenues from gold, while the rest comes from silver. It currently has streaming agreements with 23 operating mines and eight development-stage projects.

Driven by higher production and higher gold prices, Wheaton’s profit zoomed to US$507 million in 2020 from US$86 million in 2019. If the yellow metal prices continue to remain supportive, gold producers will likely see substantial earnings growth in 2021 as last year.

Air Canada

The flag carrier stock Air Canada (TSX:AC) has been trading in a narrow range for the last several weeks. However, for those looking to invest for the longer term, AC stock still looks like an appealing bet. It offers attractive growth potential, particularly for the post-pandemic environment.

According to International Air Transport Association’s outlook, there will be approximately 2.4 billion air passengers this year — a 33% increase against 2020.

Indeed, Air Canada could take longer to reach its 2019 profitability levels amid all the pandemic-related uncertainties. But Air Canada’s strong balance sheet and controlling market share will likely influence a relatively faster recovery.

As the global population’s vaccination percentage increases, air travel will gradually normalize towards the end of 2021. Air Canada’s top line could see significant growth in the second half of the year, which will likely drive AC stock higher.

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.

More on Dividend Stocks

Dividend Stocks

If I Could Only Buy 1 Stock Before 2023, This Would be it!

If you could buy 1 stock before 2023, what would it be? Here’s the stock I’m considering, and I think…

Read more »

Beautiful holiday decorated background with christmas gift boxes ,fir. christmas holiday concept
Dividend Stocks

3 Dividend Stocks to Help Offset Holiday Spending

The holidays are here, and so is the seasonal spending. Offset some of those costs by putting your investment cash…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

The 3 Passive-Income Stocks I’m Buying Next and Never Selling

These passive-income stocks have a proven track record of growth and a solid sector that will guarantee income for decades.

Read more »

oil and gas pipeline
Dividend Stocks

Enbridge Stock Rose More Than 4.5% in November: Is it a Buy Today?

Enbridge is having a good year. Are more gains on the way for the stock?

Read more »

worry concern
Dividend Stocks

3 Budget Mistakes Almost Everyone Makes

Leave these budget mistakes in 2022 and enter 2023 with more cash on hand and a better way of spending.

Read more »

Target. Stand out from the crowd
Dividend Stocks

Got $1,000? Buy These Up-and-Coming Stocks Before They Take Off

These growth stocks beat the long-term market returns and could continue delivering above-average growth in the coming years.

Read more »

Canadian Dollars
Dividend Stocks

Lazy Income: Earn $550 Per Month in 2023

Lazy income investors looking to establish or grow a monthly income stream should consider these options to bring in $555…

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime

The market is full of opportunities, including these two stocks you can buy and hold forever.

Read more »