August has been a mixed month for Canadian stocks. While the S&P/TSX Composite Index is up for the month, it is only slightly so. Of course, markets are trading over concerns about the rising Delta COVID-19 variant, geopolitical concerns in the Middle East and Asia, rising inflation, and monetary policy.
In order to overcome these concerns, a great investing strategy is to have a diversified portfolio and think long-term. The market always finds reasons to worry.
However, if you position your portfolio in good quality companies and choose to invest with a long-term time horizon, the day-to-day news matters much less. Here are three top Canadian stocks that give investors a nice mix of income, quality, and growth today.
A top Canadian renewable stock
Renewable energy is a long-term trend that should generously reward investors over time. As one of the world’s largest pure-play operators of renewable power assets, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a great Canadian stock for exposure to this sector.
This Canadian stock has struggled in 2021 and is down 13% year to date. Yet, this presents a pretty attractive opportunity. BEP is not a one-year investment to flip and trade.
It is a stock to hold for years and years. Today, BEP operates a 21,000 megawatt (MW) clean energy portfolio across the world. However, it has a 31,000 MW development pipeline that should fuel steady cash flow growth for years.
Today, BEP pays a decent 3.1% dividend. However, it has grown that dividend by a 6% compound annual growth rate (CAGR) since 2012. Given its opportunity to more than double operations over the coming decade, this Canadian stock can likely keep kicking out solid mid-teens total returns long into the future.
A top consumer health stock
If you are worried about another COVID-19 resurgence in the winter, you might want to consider owning Jamieson Wellness (TSX:JWEL). It is the leading provider of vitamins and wellness supplements in Canada. Chances are good you’ve seen or consumed its well-branded (and tasty) chewable Vitamin C products in-store or at home.
As autumn (and a potential COVID-19 resurgence) comes around, people are looking to give their immune systems a boost. This should give Jamieson some solid results over the next few quarters. In its recent second quarter, this Canadian stock produced revenue and adjusted EBITDA growth of 18% and 17%, respectively.
The company has been rapidly expanding in huge markets like China, Southeast Asia, and Europe. Similarly, strong retail channels, low-cost manufacturing, and a diverse distribution network have helped consistently expand margins. This stock is not cheap today. Yet, given its strong history of organic growth, it is an attractive retail/consumer staple stock to own for the long term.
A top financial stock
Canadian bank stocks are often in the news and well-discussed by market commentators. Yet, there is one little-known Canadian financial stock that has far outperformed any traditional bank. Had you bought goeasy (TSX:GSY) five years ago, you’d be sitting on a whopping 853% gain!
This is because goeasy has been eating up the sub-prime lending market across North America. Traditional banks no longer want to touch these riskier high-interest loans. Consequently, it has left the door open for goeasy’s stream-ined loan and leasing platform to capture a big piece of the nearly $200 billion market.
In its most recent quarter, goeasy grew loan originations by $379 million. That is a 121% year-over-year increase. That translated into revenue and earnings per share growth of 34.3% and 38%, respectively.
Since 2001, this Canadian stock has grown earnings by a CAGR of 24.9%! Despite incredible growth, this goeasy only has a market cap of $3 billion. That means its stock still has ample room to keep climbing. For a great compounder of capital, goeasy is a solid financial stock to buy and hold for years to come.
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 Robin Brown owns shares of Brookfield Renewable Partners and JAMIESON WELLNESS INC. The Motley Fool has no position in any of the stocks mentioned.