Got $3,000? 3 Top Canadian Stocks to Buy Now

As the world changes, these are the top Canadian stocks to buy now, as Motley Fool investors continue searching for deals on the TSX.

| More on:
Dollar symbol and Canadian flag on keyboard

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

Canadians learned to save during the pandemic. Many didn’t have travel plans or go on spending sprees, because, well, they couldn’t! So, instead they paid down debt or created a cash hoard. So, you may be sitting on some cash right now, and it’s burning quite the hole in your digital pocket. If that’s the case, these are three Canadian stocks to buy now, even if you’ve only managed to scrape together $3,000 to invest.

Brookfield Renewable

I talk about Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) a lot, but for good reason. The company took off during the beginning of the year when the then-new president of the United States Joe Biden announced more funding for clean energy projects. This was great news for Brookfield, as the company has a diverse range of assets around the world focused specifically on clean energy.

But then there was a pullback, and since then, the stock has dipped from those highs. Yet that’s why now it’s one of the best Canadian stocks to buy now. Shares are up 43% in the last year alone, and it offers a 3.16% dividend yield as of writing. But in the last two decades, shares have exploded by 2,308% for a compound annual growth rate (CAGR) of 17.22%! If you had invested $1,000 back then, today those shares would be worth $7,230.77 without taking into account dividends! And that’s only going to grow, as clean energy gets more and more global investment.


Then there’s the oil and gas sector. Sure, that’s definitely on the flip side of supporting clean energy assets. But don’t be too quick to judge. The world will slowly shift over the clean energy, and Suncor Energy (TSX:SU)(NYSE:SU) has already started to take that into account. Canada’s largest fully integrated energy producer has purchased some clean energy assets but is using its long-term contracts to keep cash flowing in.

Motley Fool investors today can pick up Suncor stock for cheap, even as oil and gas demand rises. Suncor stock is one of the best Canadian stocks to buy now during this rebound given these diverse revenue streams. Shares are up an incredible 38% in the last year alone, with a dividend yield at 2.85% that’s due to rise as cash comes in, given that it was cut during the pandemic. Long-term investors were treated to 350% in growth even now — a CAGR of 7.8%. So, investing $1,000 in Suncor stock then would be worth $3,500 today.


But back to clean energy, or at least industries that support it. Magna International (TSX:MG)(NYSE:MGA) is one of the largest car parts manufacturers in the world, but recently there’s been a shift to electric vehicle support. Even ICE vehicles now use electronic parts, which is why Magna partnered with LG Electronics to provide this support. The company is set to continue soaring higher, as it make deal after deal with titans of the car industry.

Shares in the stock are up 93% in the last year, and it offers a nice little 1.81% dividend yield as of writing. Those shares were higher, but, again, there was a pullback when clean energy and electric vehicle stocks fell. But that’s why it’s now one of the top Canadian stocks to buy now for Motley Fool investors. With 730% growth the last two decades for a CAGR of 11.15%, a $1,000 investment would be worth $5,700 as of writing.

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 Brookfield Renewable Partners. The Motley Fool recommends Magna Int’l.

More on Investing

funds, money, nest egg
Dividend Stocks

TFSA Passive Income: 2 Great Canadian Dividend Stocks for Retirees to Buy Now

Retirees seeking reliable passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

man window buildings
Stocks for Beginners

Foolish Beginners: 1 Stock Pick to Buy Now for a $6,000 TFSA

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) stock looks cheap as shares regain their footing.

Read more »

data analyze research
Dividend Stocks

Earn Monthly Passive Income: 2 Hot Dividend Stocks in Canada to Buy Now and Hold Forever

These two hot dividend stocks could help you to earn stable monthly passive income in Canada.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Be a Landlord: Top 2 REITs (With Monthly Dividends) I’d Buy and Forget

You can be a landlord and earn monthly dividends for the rest of your life. All you need is the…

Read more »

Target. Stand out from the crowd

3 Canadian Stocks to Buy That Beat Their Earnings Expectations This Week

If you're looking for top Canadian stocks to buy, here are three impressive companies that continue to perform well in…

Read more »

A stock price graph showing declines
Energy Stocks

2 Cheap Canadian Stocks That Likely Won’t Be on Sale For Much Longer

These two Canadian stocks are close to returning to all-time highs. Don’t miss your chance to take advantage of these…

Read more »

A worker gives a business presentation.
Dividend Stocks

Got $5,000? 3 Stocks to Hold for the Next 20 Years

New investors don’t need tens of thousands to start a portfolio. Here are three stocks to hold for the next…

Read more »

canadian energy oil
Energy Stocks

3 Rising Energy Stocks to Buy as Oil Hits 6-Month Low

Three rising energy stocks are strong buys today as their upward momentum is likely to continue due to the tight…

Read more »