Canadians learned to save during the pandemic, but that doesn’t mean everyone wants to spend it all on investing. However, a good rule of thumb is to start by putting aside 10% of each paycheque towards investing. That would mean if you make $48,000 a year, you would put aside $400 each month for investing. Then you want to look for the best Canadian stocks to buy on the TSX today. Luckily, I’ve already done the heavy lifting for you. So, let’s take a look at the best long-term stocks I would recommend to Motley Fool investors today.
Open Text (TSX:OTEX)(NASDAQ:OTEX) is a diamond in the rough of tech stocks. It has decades of growth behind it as a cybersecurity company, but lately it has seen immense growth. This comes after years of acquisitions, where the company is now making massive partnerships. Some of its clients include Google and Microsoft, just to name a few.
Shares in the company are up 13% in the last year, but 1,492% in the last two decades for a compound annual growth rate (CAGR) of 14.83%! You’ll also get access to a dividend yield — something many tech stocks don’t even offer. With the company making more household name partnerships practically every other day, this is one of the best Canadian stocks to buy for long-term investors.
Onex (TSX:ONEX) has been dubbed by analysts as a breakout stock at the moment. After falling from 2017 highs, the stock just recently reached a share point above its downward trend line of the last four years. Shares are now up 55% this year alone, working back towards all-time highs.
But Onex is one of the best Canadian stocks to buy, because of its future as a private equity firm. The company gives you access to the rebound in airlines with its acquisition of WestJet. However, it’s now shifting focus over to loans as well, creating a credit powerhouse through a recent hiring spree. Yet the company remains a steal, despite all this recent growth, with a P/E ratio of just 3.15 as of writing!
Canadian National Railway (TSX:CNR)(NYSE:CNI) is due to announce earnings next week, and it’s something investors should pay close attention to. On the one hand, Motley Fool investors would do well to consider CNR stock as a long-term stock thanks to its recent purchase of Kansas City Southern. This will give the company access from Canada down to Mexico, creating a large revenue stream for the future.
However, it also means the company took on a lot of debt. So, if you can hold for the long term, CNR stock could be one of the best Canadian stocks to buy today. But if you need to sell in just a few years, definitely pay attention to see what management has to say when earnings are announced next week. As of writing, shares of CNR stock are up just 10% in the last year but 1,533% in the last two decades for a CAGR of 15%.
Finally, Toronto-Dominion (TSX:TD)(NYSE:TD) is a great stock for pretty much any portfolio. The Big Six bank proved its worth during the market crash, as did the other Big Six banks, thanks to provisions for loan losses. TD stock has seen incredible revenue growth since then, with shares now at all-time highs. The bank was recently named “Canada’s Best Investment Bank” by Euromoney. This was due to its growing global presence, acquisitions, and U.S. expansion.
Shares in TD stock are up 45% this year and 750% in the last two decades for a CAGR of 11.3%. Meanwhile, you also get access to a dividend yield of 3.73%, which is likely due to climb now that government restrictions have been lifted. Finally, this is one of the best Canadian stocks to buy thanks to being so cheap, with a P/E ratio of just 10.9. This is one of the best stocks Motley Fool investors could consider for a long-term portfolio.
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.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns shares of TORONTO-DOMINION BANK. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Microsoft. The Motley Fool recommends Canadian National Railway, OPEN TEXT CORP, and Open Text.