Investors know that finding the best stocks to buy in this market environment is not so straightforward. On the one hand, markets continue to set new all-time highs. Conversely, many investors are concerned about another wave of COVID cases, both in Canada as well as worldwide.
This uncertainty can understandably create some confusion for investors. But in times like these, it’s important to stay committed to investing for the long run.
So while it’s important to keep up to date with what’s going on, much of the news will be short-term noise. This means the best stocks to buy will continue to be the top Canadian companies to own long-term. Here are two of the best to buy this week.
A top long-term growth stock
Northland is an exceptional growth stock with a tonne of high-quality renewable energy assets, in addition to its utility operations.
The company has been a top growth stock in the past. And in my view, it has one of the best five-year growth plans in the industry today.
Its most recent quarterly earnings report was slightly disappointing, though. This resulted in Northland’s stock selling off slightly. However, the stock only fell about 10%, as investors know what a high-quality business Northland is.
Nevertheless, this high-quality growth stock is now trading at an attractive discount, making it one of the best to buy this week. The current average target price from analysts is more than $48.50. That’s a more than 20% return from today’s market price.
And not only does it offer short-term growth potential, back to its fair value. But as I mentioned before, Northland is also a top stock to own for long-term growth as the world continues to shift to cleaner energy.
So if you’re looking for one of the best stocks in Canada to buy today, Northland is one you’ll definitely want to consider.
One of the best dividend growth stocks to buy now
In addition to Northland, another top stock to consider today is A&W Revenue Royalties Income Fund (TSX:AW.UN).
A&W is an incredible stock to buy, as it’s been one of the top growth companies in the Canadian restaurant industry for years. Canadians can’t get enough of A&W’s products. And with the help of its brilliant marketing strategy, A&W continues to expand its sales each year.
Besides the pandemic, which impacted all restaurants, A&W has consistently opened new locations and grown the same-store sales from its existing locations.
This has resulted in a stock that’s increased in value significantly, as well as a dividend that continues to grow as well.
Because the pandemic impacted sales, the dividend had to be trimmed to preserve cash. However, A&W has already made a strong recovery. And during its most recent earnings report, management decided to increase the dividend once again.
This is the second time the dividend has been increased since it was cut for the pandemic. And currently, the company is paying out 94% of what it was before the pandemic, showing it has almost fully recovered.
With the dividend growth stock now yielding upwards of 4.75%, it’s easily one of the best stocks to buy now. So if you’re looking to add a top Canadian stock to your portfolio, A&W is definitely a top recommendation.
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 A&W REVENUE ROYALTIES INCOME FUND.