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Dogecoin: 3 Canadian Stocks to Buy Instead

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Ever since Dogecoin began falling the night Elon Musk went on “Saturday Night Live” the highly speculative cryptocurrency has been selling off significantly. Nevertheless, many investors continue to consider buying Dogecoin rather than finding top Canadian stocks to buy.

Despite mini spikes now and then, the coin continues to set lower lows and is continuing to decline.

As of Wednesday morning, Dogecoin was down roughly 70% from its all-time high.

Even though Dogecoin grew so rapidly and some investors could have made significant returns, it would never have been classified as a good investment. The cryptocurrency was a good speculative trade. As an investment, though, it never made sense, and it still doesn’t.

There are few fundamental reasons why Dogecoin would be an asset you want to hold for the long run. So rather than considering Dogecoin, here are three top Canadian stocks to buy instead.

A top renewable energy stock to buy now

If you’re looking for a high-quality investment you can own long-term, rather than speculate on Dogecoin, I’d consider a high-quality green energy stock. Several renewable energy stocks are worth a buy today. The best Canadian stock, though, has to be Northland Power (TSX:NPI).

Northland has an exciting portfolio of assets in North America and Europe. In addition to some natural gas assets and onshore renewable projects, Northland also has a massive offshore wind portfolio, which contributes a major portion of its operating earnings.

While Northland’s current operations are exceptional, that’s not even the top reason to buy the stock today. Northland continues to offer some of the best long-term growth potential in the industry, which is why it’s a much better investment than buying Dogecoin.

Earlier this year management put out guidance committing to spend up to $20 billion over the next five years to grow its portfolio and take advantage of the massive clean energy revolution happening around the world.

So if you want a top stock with decades of growth potential, Northland Power is one of the best stocks to buy today.

A top gold stock

In addition to green energy, another industry to find some of the best Canadian stocks to buy today is gold.

Gold stocks have become extremely cheap over the last few months. So while there are several attractive stocks in the industry, one of the very best is Kirkland Lake Gold (TSX:KL)(NYSE:KL).

It’s a much better investment than Dogecoin because gold is much less of a speculative asset, and Kirkland Lake is continuously earning cash flow.

The company owns assets in Canada and Australia, two countries with little political risk — an important consideration when analyzing gold stocks. The company is also massive, worth more than $13 billion and producing between 1.3 million and 1.4 million ounces annually.

Apart from the fact that it’s a major company with little political risk, another reason Kirkland Lake is so attractive is due to its low costs. Having low costs is crucial because it allows you to remain profitable even as prices are falling, and when they rise, the income potential is enormous.

So rather than speculate on Dogecoin today, I’d strongly consider adding a top gold stock to your portfolio, such as Kirkland Lake, especially while gold stocks are still cheap.

Forget Dogecoin: here’s a top recovery stock to consider

Finally, if you’re looking for a stock with some significant potential, Cineplex (TSX:CGX) could see a strong recovery over the next year.

The recovery stock has been struggling for a while, but as Canada’s economy is rapidly progressing, Cineplex looks like a much better investment than Dogecoin.

It’s not just its movie theatres that will see a big boost to business as restrictions are lifted. The company also owns numerous entertainment venues under the Playdium and The Rec Room brands.

These types of entertainment venues will have major pent-up demand from consumers and should see just as strong a recovery as its movie theatres.

The stock is poised for a lengthy recovery as we start to return to normal. So rather than speculating on Dogecoin, I’d consider buying this top Canadian stock for the long run.

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 Daniel Da Costa owns shares of NORTHLAND POWER INC. The Motley Fool recommends CINEPLEX INC.

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