3 Top Canadian Stocks for June 2021

Here are three of my top picks that I think long-term investors need to give a hard look in this current investing environment.

| More on:
Businessmen teamwork brainstorming meeting.

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

The pandemic has provided whip-sawing stock prices this past year. Accordingly, investors may be enticed to steer clear of the economic turmoil and seek greater defensiveness and diversification.

Well, these three stocks provide these factors in spades. Here’s why I think these three stocks deserve a hard look by long-term investors today.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) has continued to be one of my top picks for quite some time now. One of the best consolidators in the gas station and convenience store segment, the company’s growth-by-acquisition strategy has performed extremely well for shareholders over the long term.

However, of late, the company has been penalized for its deal flow — or, rather, the lack thereof.

A failed bid for French grocer Carrefour was also looked down upon by the market in a big way. Indeed, the correction that was caused by this bid was one I didn’t see coming.

That said, it appears investors are hoping for more attractively priced deals focused on the company’s core lines of business. While I think Couche-Tard’s move into retail was a smart one, the market has voted, and it disagrees.

That said, now could be a great time to pick up shares of this beaten-up growth gem. The company trades at only 15 times earnings and provides a small but meaningful dividend to patient investors willing to wait. It’s a great diversification play at a time when most stocks are overvalued today.

Kirkland Lake Gold

Speaking of diversification, what’s better than picking up shares of a high-quality gold miner today?

And in this space, there’s really no better option than Kirkland Lake Gold (TSX:KL)(NYSE:KL) right now. This top-notch gold miner provides investors with access to some of the best high-grade mining operations in the world. It’s a mid-cap miner with a tonne of long-term cash flow growth upside. And it’s now paying out a dividend yield of roughly 1.8% — absolutely absurd in the gold mining space.

Indeed, Kirkland Lake’s pristine balance sheet is a sight to behold. The company’s been able to create best-in-class operating margins via prudent cost-containment strategies and a focus on asset quality.

With gold prices on the rise of late, I remain bullish on Kirkland Lake’s cash flow prospects over the long term. This gold miner is valued at less than 16 times earnings, despite these catalysts. It’s a steal today.


For investors seeking income, growth, and value, Enbridge (TSX:ENB)(NYSE:ENB) has it all.

This reliable pipeline play has been a steady producer for investors over the long term. The company’s increased its dividend for 25 years straight, providing a CAGR of 14.3% to long-term investors. Enbridge’s current yield of 7.3% is high relative to its historical average and that of the sector. However, for those bullish on the company’s ability to sustain modestly growing cash flows over time, this yield isn’t impossible to maintain.

Of late, Enbridge’s management team has committed to cutting its annual dividend rate increase to around 3% a year. The funds that would have gone to increasing its dividend will go to debt reduction and balance sheet improvement initiatives. Such moves are prudent and make this stock a screaming buy 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. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Enbridge.

More on Dividend Stocks

Payday ringed on a calendar
Dividend Stocks

How to Convert $500 Monthly Investment Into $200 Monthly Income

If you want the stock market to give you regular monthly income, you have to invest in the stock market…

Read more »

worry concern
Dividend Stocks

3 Ultra-Safe Dividend Stocks for Jittery Investors

Motley Fool investors nervous about the market downturn should consider these ultra-safe dividend stocks that keep paying passive income no…

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

Is the Real Estate Boom Finally at an End?

It might be hard to believe, but Canada’s decades-long housing boom might be at an end.

Read more »

Caution, careful
Dividend Stocks

3 Mistakes to Avoid When Investing in a Recession

Avoid making these crucial investing mistakes during market downturns to protect your investment portfolio.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend ETFs for Easy Passive Income

Canadians can earn generous passive income the easy way from two dividend ETFs with monthly payouts.

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Pension: How Retired Couples Can Get an Extra $815 Per Month in Tax-Free Passive Income

Retirees now have an opportunity to buy top dividend stocks at cheap prices to generate high-yield, tax-free passive income inside…

Read more »

exchange traded funds
Dividend Stocks

2 Dividend-Paying ETFs You Can Buy in 2022

These two dividend-paying ETFs in Canada allow them to earn a steady stream of passive income.

Read more »

Dividend Stocks

Attention Canada: It’s Time to Buy These REITs in Your TFSA

Rising interest rates created a correction in REIT prices. It’s time to buy some REITs in your TFSA and lock…

Read more »