The TSX index is trading at an all-time high. Our Foolish writers came up with a list of top TSX stocks to potentially buy in June 2021. Here is a smaller list that could be to your liking for income or price appreciation.
Top TSX dividend stocks to buy for income in June 2021
Algonquin Power & Utilities dipped more than 16% from its high earlier this year. At writing, it yields about 4.4%. With a portfolio of renewable power largely supported by long-term contracts and regulated utilities, its earnings and cash flow are relatively stable.
Not surprisingly, the top TSX dividend stock has increased its dividend every year since 2011. AQN stock could be a good buy on the dip for investors seeking nice dividend income.
TC Energy (TSX:TRP)(NYSE:TRP) is a reasonably valued income stock. It seems to be on the verge of a breakout. If it securely trades about the $64-per-share resistance level over the next weeks, it could climb to the $70 level for +10% upside from current levels.
At writing, it provides an outsized dividend yield of 5.5%. TC Energy’s dividend is supported by predictable cash flow generation from its natural gas and liquids pipeline network and power plants.
Notably, the dividend stock has increased its dividend every year since 2002. Going forward, management also aims to increase the dividend by 5-7% per year. The company has visible growth in a $20 billion secured capital program through 2024.
Fronsac REIT (TSXV:FRO.UN) is also reasonably valued and yields 3.8%. The diversified REIT seeks to acquire properties that are at sought-after locations, which drive revenue for its tenants. Consequently, its tenants are likely to renew their leases at the end of their terms.
The following showcases the REIT’s quality. During the pandemic in 2020, its occupancy dropped to 99%. In the previous nine years, its occupancy was 100%. Since 2012, Fronsac REIT has compounded its cash distribution per unit by 10.2% per year. That is, the dividend double-digit growth rate continued through 2020 and 2021 with increases of 15.1% and 17.4%, respectively!
Because of Fronsac REIT’s small size, its acquisitions and developments make a real impact on its cash flow. Currently, it has about 77 properties in its real estate empire.
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Top Canadian stocks to buy for price appreciation
Stock returns come from dividends and price appreciation. Algonquin, TC Energy, and Fronsac REIT could provide steady income and price appreciation in the long run.
ATS Automation Tooling Systems provides automation solutions for businesses. In the last 12 months, its revenue marginally increased to $1.4 billion, and its EBITDA remained steady at about $167 million. However, it translated to adjusted earnings-per-share growth of 21% to $0.69.
Analysts have a 12-month average price target of $40.90 per share on the stock for near-term upside potential of 33%. If materialized, this would be market-beating returns.
WELL Health corrected 27% from its 52-week and all-time high. So, it could be a good time to buy the stock, as the company provides virtual healthcare services, which is a growing industry.
The company’s revenue increased by 84% to $66 million in the last 12 months. Also, its adjusted EBITDA was $527 million in the last reported quarter, up significantly from -$246 million in the same quarter a year ago.
Analysts’ average 12-month price target of $11.35 per share on the stock represents near-term upside potential of 58%, which would beat the market.
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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 Kay Ng owns shares of Fronsac REIT and WELL Health.