Got $3,000? 3 Canadian Stocks to Buy Now to Beat Back Inflation

If you’re looking for Canadian stocks to buy now for growth beyond inflation, these three will give you that and then some for decades!

| More on:
Index funds

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

If there’s one thing I’m really not worried about these days, it’s interest rates. Sure, interest rates are set to rise, and that will definitely affect my everyday life — my mortgage rates, my grocery bill, all of it. However, I’m still not worried. That’s because I’m a Motley Fool Canada investor that’s chosen solid investments that will outpace interest rates again and again. With that in mind, here are three Canadian stocks to buy now if you’re worried about inflation.

Enbridge

One of the best places Motley Fool Canada investors can put their money is in pipelines. Yes, we are slowly moving towards clean energy. But I would still argue pipelines are a safe investment, even decades down the line. In the near term, companies like Enbridge (TSX:ENB)(NYSE:ENB) have long-term contracts to see cash flowing in for decades. On top of that, Enbridge stock alone has growth projects coming online this year worth $10 billion and more in the future.

But beyond that, pipelines offer real estate for future clean energy projects. So, it’s likely Enbridge stock will simply transfer from one area to another in the years to come. Now and forever, you can look forward to stable revenue. Shares of the company are up 31% in the last year alone but are still undervalued with a price-to-earnings (P/E) ratio of 15.9. Meanwhile, you get a top dividend yield of 6.77%. That alone is almost double predicted inflation! But this is also one of the Canadian stocks to buy now, given its potential upside of 22% in the next year, according to analysts.

Great West Lifeco

Canada’s top insurer has been experiencing an intense recovery during the last year. Great West Lifeco (TSX:GWO) continues to rebound thanks to its global presence. The company has been growing in Asian markets, where there is an emerging middle class, especially in China. In the last quarter alone, earnings per share rose by 36%! This is promising revenue growth for investors seeking strong future earnings.

Shares are up 66% in the last year alone, with a potential upside of a further 11% as of writing, according to analysts. The $34.19 billion company is still incredibly valued, however, with a P/E ratio of 10.3 at the moment. Meanwhile, you can enjoy a dividend yield of 4.8% right now — again, far outweighing any inflation risks. The company also offers investors a compound annual growth rate (CAGR) of 8.82% in the last decade. That alone makes it one of the best Canadian stocks to buy now.

Cameco

Back to clean energy, there are multiple ways consumers will likely see clean energy in their lives in the future. One such way is through nuclear power. Cameco (TSX:CCO)(NYSE:CCJ) is set to be the largest earner from this industry as the world’s largest uranium producer. The company has been acquiring and growing with its renewed growth strategy, and yet it still has about $1 billion in cash on hand. With the United States alone seeking to cut greenhouse gas emissions by 52% by 2030, nuclear energy is the fastest way towards this goal.

Shares in Cameco are up 78% in the last year — a growth stock by any means. But this is one of the best Canadian stocks to buy now because of all this potential. Analysts expect the company to continue growing a potential 17% in the next year alone. But this is a buy-and-hold stock I would keep for decades. As the world turns towards nuclear energy more and more, Cameco is set to be a top earner.

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 Amy Legate-Wolfe owns shares of Enbridge. The Motley Fool owns shares of and recommends Enbridge.

More on Energy Stocks

oil and natural gas
Energy Stocks

Small OPEC+ Oil-Output Hike: Buy More Energy Stocks?

Energy stocks could soar higher, because oil markets will remain tight due to the small production increase by OPEC+.

Read more »

canadian energy oil
Energy Stocks

3 High-Yield Energy TSX Stocks That Offer Monthly Passive Income

Dividend-paying stocks are generally slow-growing, boring ones. Well, not these ones.

Read more »

green power renewable energy
Energy Stocks

5% Dividends + 20% Growth: Watch This Green Energy Stock

Dividend-growth stocks like TransAlta Renewable (TSX:RNW) should be on your watch list.

Read more »

Oil pumps against sunset
Energy Stocks

3 Top Energy Stocks to Buy in August

Cenovus Energy (TSX:CVE)(NYSE:CVE) is a top oil stock for August 2022.

Read more »

energy industry
Energy Stocks

3 Canadian Energy Stocks With Incredibly Fast-Growing Dividends

There are plenty of bargain-priced Canadian energy stocks today. Here are three that are rapidly growing their dividends.

Read more »

A plant grows from coins.
Dividend Stocks

4 Stocks That Could Turn $100,000 Into $500,000 by the Time You Retire

Building retirement wealth is a long process, but it’s possible for $100,000 to grow to half-a-million dollars over time.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

3 Top TSX Stocks That Saw Bumper Q2 Earnings Growth

Some stocks are seeing epic growth even as the market braces for a recession.

Read more »

pipe metal texture inside
Energy Stocks

Enbridge: 1 of the Best Canadian Stocks You Can Buy and Hold for the Long Haul

As markets continue to face a tonne of uncertainty, there's no question that Enbridge is one of the best Canadian…

Read more »