Investing in Canadian stocks is not only one the easiest way to build long-term wealth, but it’s also one of the cheapest. Depending on what you’re investing in, the fees could be very minimal to own shares of a top Canadian company. Not only are fees low, but many market-leading Canadian stocks are trading at affordable share prices today too.
The key to building long-term wealth is not only choosing the right stocks but holding for the long term. The longer you’re able to hold a stock the more you’re able to benefit from the magic of compound interest.
With just $100, Canadians have the option to invest in a long list of TSX stocks. I’ve put together a basket of three top companies that should be on your radar right now.
Brookfield Renewable Partners
Renewable energy companies were some of the top growth stocks in 2020. The entire sector has been largely outperforming the Canadian market for several years now, but that growth really took off last year.
It’s been a different story this year for renewable energy stocks. Even though the Canadian market is nearing a 15% gain on the year, many top green energy companies are trading well below all-time highs right now.
Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is one of my top picks in the sector. Shares of the $12 billion company were up a market-crushing 70% in 2020 alone. Year to date, though, the Canadian stock is down close to 20%.
As a long-term investor that’s bullish on renewable energy, this is a discount that I’ll be sure to take advantage of.
Brookfield Renewable Partners is a leader in the growing sector that also owns a dividend that’s yielding more than 3% today. And even with the 20% discount, shares are still up a market-beating 135% over the past five years.
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WELL Health Technologies
Speaking of sectors with strong tailwinds, telemedicine is one area of the market that I’m looking to broaden my exposure to.
It’s not surprising to hear that stocks with a telemedicine offering exploded in 2020 when the pandemic hit. But as countries across the globe are increasing their vaccination numbers, telemedicine stocks have been cooling off.
Virtual doctor visits may be down year-over-year, but I’m still bullish on the long-term growth of telemedicine stocks. That’s why I have WELL Health Technologies (TSX:WELL) at the top of my own watch list right now.
The Canadian stock saw its stock explode by more than 400% in 2020. Shares are down 15% from all-time highs right now, but that’s nowhere near the sell-off that many of its peers have dealt with in recent months.
At a market cap still of only $1.5 billion, this telemedicine stock has plenty of room to grow. If you’re as bullish on this area of the market as I am, you’ll want to pick up shares before the stock is back to all-time highs.
Dye & Durham
Dye & Durham (TSX:DND) may only be trading at a share price of about $50, but the tech stock is far from cheap. From a valuation perspective, it’s an extremely expensive Canadian stock. It’s valued today at a price-to-sales ratio above 20. If you’re looking to invest in a high-growth tech company, that’s the cost of admission today.
Shares of the Canadian stock are expensive, but the steep price has certainly been worth the risk so far. Dye & Durham stock is up more than 200% since joining the TSX less than one year ago.
It’s been close to a straight ride up since joining the public market last year for Dye & Durham stock. While I do believe there are many more market-beating years ahead for this Canadian stock, investors need to be wary of the likely volatility. But if you’re willing to hold for the long-term and not sell when the stock goes through inevitable pullbacks, this is one growth stock that I’d have at the top of my watch list 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.