The Best Canadian Stocks to Buy to Strengthen Your Portfolio

This Motley Fool article is about BCE, Agnico-Eagle Mines, and TD Bank stock — three of the best Canadian stocks to buy now.

| More on:
stock research, analyze data

Image source: Getty Images

The best Canadian stocks to buy today strengthen investors’ portfolios. They do this by providing important benefits. For example, they add resiliency. They also add predictability and diversification. These are all qualities that can help us accumulate wealth and prosper in the good times. They can also help shelter us in the bad times. At Motley Fool Canada, our goal is to help you, our reader, identify which stocks to buy.

This article is for those of you who want to strengthen your portfolio. Maybe you’re worried about the next market crash. Or maybe you just want some solid and dependable anchors to your portfolio.

Without further ado, here are the three top stocks to buy today to strengthen your portfolio.

Agnico-Eagle Mines stock: The best Canadian stock to hedge against risk and inflation

Gold stocks like Agnico-Eagle Mines (TSX:AEM)(NYSE:AEM) are good places to turn for protection from inflation and general risk. These stocks offer diversification and downside protection. And as far as gold stocks go, Agnico-Eagle Mines stock has a very attractively company profile. You get the general benefits that the gold sector provides, along with other perks.

For example, Agnico-Eagle Mines is a top gold stock for dividend growth and cash flow generation. This is evident from the fact that Agnico has paid out a dividend since 1983. And since 2015, Agnico has grown its annual dividend per share from $0.32 to the current $1.40. That’s a very impressive compound annual growth rate of 34%.

Record production and soaring gold prices are driving cash flows significantly higher. Cash flow from operations skyrocketed 120% in the latest quarter. This is due to rising gold prices, which have settled above US$1,800 per ounce. They will head even higher if inflation heats up. They’ll also head higher if investors start looking for a safe haven again.

Agnico-Eagle Mines stock

BCE stock: A Canadian top stock for stability and income

BCE (TSX:BCE)(NYSE:BCE) is another top stock to turn to for stability and income. It is, after all, Canada’s largest telecom services company. Its position is backed by the company’s extensive reach. Its world-class wireless and fibre networks are second to none. It’s also backed by BCE’s financial health and financial strength. This is what we at Motley Fool Canada like to see. It’s what makes BCE a top stock to buy to strengthen your portfolio.

Motley Fool rec BCE stock

TD Bank stock: A bank stock for long-term growth and income

Bank stocks are the pulse of the economy. Canadian bank stocks are also the best place to turn to for dividend income. These stocks have stood the test of time. I mean, Canadian bank stocks have survived and thrived, despite the many hurdles that were put in their way. For example, the 2008 financial crisis was a big threat. But today, this is just a distant memory for banks, like Toronto-Dominion Bank. Not only is the bank stronger than ever, but its stock is 160% higher.

TD Bank stock

TD Bank is one of the largest Canadian banks. It’s also the fifth-largest North American bank. Through it all, TD Bank stands out for its strength south of the border and for its success in driving efficiencies. This bank has proven itself. Today, it’s benefitting from its scale, diversification, and financial strength. It is these competitive advantages that will enable TD Bank to continue to be a top stock to buy to strengthen investors’ portfolios.

Motley Fool: The bottom line

Times are highly uncertain. Stock markets are trading near all-time highs. While the COVID-19 pandemic is coming to an end, stock valuations are high — some would even say overvalued. For this reason, it would be wise to strengthen your portfolio. Consider adding the three best Canadian stocks discussed in this article.

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 Karen Thomas owns shares of Agnico-Eagle Mines, BCE, and Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Paper Canadian currency of various denominations
Dividend Stocks

Set and Forget: 1 Dividend Stock That Could Create $1,000 in Tax-Free Passive Income in 10 Years

Enbridge operates a low-risk business that has allowed the TSX dividend giant to raise its payout by 10% annually since…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: How to Make $106 Per Month Tax Free

Holding quality, high-yield dividend stocks such as Freehold Royalties in a TFSA can help you earn tax-free income for life.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on it

Stocks like First National Financial (TSX:FN) pay you monthly. You can also earn monthly dividends through portfolio diversification.

Read more »

stock analysis
Dividend Stocks

1 Dividend Superstar I’d Buy Over TD Bank Stock

TD (TSX:TD) stock may look undervalued, but there are reasons for the price drop. Meanwhile, this dividend superstar has more…

Read more »

A steel grain silo storage tank with solar panel in a yellow canola field in bloom in Alberta, Canada.
Dividend Stocks

Down by 26.77%: Now Might Be the Perfect Time to Buy Nutrien Stock

This TSX stock has seen share prices fall by over 26% from its 52-week highs, but it might be the…

Read more »

Woman has an idea
Dividend Stocks

2 No-Brainer Stocks to Buy Now With $7,000

Two relatively cheap cash cows are no-brainer buys for investors with $7,000 to invest.

Read more »

dividends grow over time
Dividend Stocks

Buy This High-Yield Dividend Stock in July 2024

Buy this high-yielding dividend stock to lock in inflated yield into your portfolio to generate solid passive income for years.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Where Will Dollarama Stock Be in 3 Years?

Dollarama stock has done incredibly well during economic uncertainty, but what about when the markets recover in the next three…

Read more »