3 Top TSX Stock Picks for July 2021

For those seeking a long-term TSX stock for a post-pandemic recovery, these three are definitely the top to consider this month.

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It’s getting closer and closer. As of writing, Canada now has 42.7% of its population fully vaccinated at 16 million citizens. So, if you’ve been waiting around, wondering when the economy could soon be fully reopened, that time is definitely coming closer. It’s why some of the top TSX stock choices today are those that depend on an economic recovery. So, today, I’m going to discuss three I would buy before the next boom.

BSR Real Estate Investment Trust

Canadian investors have two worries when it comes to investing in real estate. First, there’s whether real estate locations that were once dependent on in-person customers will be supported in a post-pandemic world. Second is inflation. One way to get around both of these issues is by investing in a TSX stock in residential real estate investment trusts.

BSR REIT (TSX:HOM.U) is an excellent option in this case, with landlords able to quickly raise rents as inflation rises higher. Its garden-style apartments have enjoyed significant growth in the last year, and management believes this will continue throughout 2021 and into 2022. With earnings around the corner, the company expects similar strong results. Last quarter, it reported a 2.5% increase in year-over-year revenue, the $195 million acquisition of three apartment communities in Texas, the sale of three other non-core properties for $34.8 million, and a whopping 99% rent collected!

Shares are up 30% for this TSX stock in the last year and likely to only increase as the world reopens. All while collecting a 3.72% dividend yield in your back pocket.

Enbridge stock

It’s not a secret that as the world opens, more gas will be used. But right now is a tricky time to invest in a TSX stock in the oil and gas industry. On the one hand, oil and gas is at increasing demand. But recent tensions within the Organization of Petroleum Exporting Countries (OPEC+) means that while there may be a short-term boom in oil prices, there could be a bust down the line.

Luckily, you can still count on oil and gas being distributed, just perhaps not at strong prices. That’s why I’d recommend pipeline companies as a safe way to invest in the energy sector today. Enbridge (TSX:ENB)(NYSE:ENB) remains a top choice. The company has long-term contracts to support decades of cash flow and $10 billion in projects coming online this year.

And even if there’s short-term volatility, you’ll still be able to count on Enbridge stock and its 6.66% dividend yield as of writing. But in the last year, shares in Enbridge stock have grown by 34.43%, all while remaining cheap at a price-to-earnings ratio of 16.

Brookfield Business Partners

Brookfield Business Partners (TSX:BBU.UN)(NYSE:BBU) is the perfect stock to buy before the rebound hits. The TSX stock specializes in acquisitions, with the goal of reaching 15% in returns each and every year. With interest rates still down, and companies unsure of the future, Brookfield has been buying businesses to create a powerhouse of future revenue.

Two such acquisitions include Modulaire Group for $5 billion and DexKo Global for $3.4 billion. The former is an infrastructure services company that topped the charts as one of the largest private equity deals in Europe this year, adding $125 billion to the company’s profile. The latter is a trailer running fear and chassis assemblies company, which has seen massive growth in automation, reduction in manufacturing complexity, and procurement process. This led to doubling of profits before the purchase.

Shares are up 46% this year alone, tripling the goal of 15%. So, this TSX stock is by far one of the best long-term stocks you can buy up 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.

Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BSR REAL EST INVST.

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