3 Top Canadian Stocks to Buy in September

If you’re looking to buy stocks in September, start with these three. They are three of the top Canadian stocks to buy in this market environment.

| More on:
Man considering whether to sell or buy

Image source: Getty Images.

As September approaches and the summer winds down, the investing environment is full of uncertainty. So it goes without saying that deciding which top Canadian stocks you want to buy is a difficult task.

On the one hand, our economy has been recovering well from the pandemic, and our vaccination rates are some of the highest in the world. But, on the other hand, the fourth wave is rapidly approaching, with cases counts rising rapidly for quite some time now.

So you want to make sure your portfolio is protected from some potential short-term volatility. However, you also don’t want to be too conservative and miss out on all the high-potential opportunities that exist today.

This can make things very difficult for investors. But in these situations, it’s always important to take a long-term approach and look for the best opportunities that exist today.

So with that in mind, here are three of the top Canadian stocks to buy in September.

A top Canadian value stock to buy 

The first stock I’d recommend investors consider in September is Corus Entertainment (TSX:CJR.B). Corus is one of the top Canadian stocks to buy now because it continues to be one of the cheapest stocks in Canada.

And while it has been rallying lately, it’s still heavily undervalued, offering investors a significant opportunity.

The TV media company has seen a strong recovery in advertising since the start of the pandemic. Furthermore, it continues to pay down its debt with all of the free cash flow it earns every quarter. These are the two biggest issues investors have with the stock, and Corus has addressed them exceptionally.

Meanwhile, the stock trades at a forward price to earnings ratio of just 7.1 times. That’s extremely cheap, which is why Corus is easily one of the top Canadian stocks to buy now.

Corus only continues to recover and pay down debt, so the situation can only get better from here. And in addition to all the capital gains potential it offers, it pays an attractive dividend to investors who are willing to wait.

A top growth stock

While Corus is offering an incredible deal, not everyone is a value investor. If you prefer the growth investing strategy, I’d be looking to buy a stock like Shopify (TSX:SHOP)(NYSE:SHOP) in September.

Shopify is one of the best Canadian growth stocks of all time, making it an ideal stock to buy anytime there is a pullback.

While the stock did get a boost from the pandemic at the beginning, in my view, that’s not something investors have to worry about going away after the pandemic is over. If anything, it just gave more momentum to an e-commerce trend that was already rapidly growing in popularity.

Shopify has proven that it can continue to grow for years, no matter what the situation is with the economy or pandemic.

This is why it’s one of the top Canadian stocks you can buy, especially when you get it on sale. So if you see the opportunity to buy Shopify this month, I’d take it. It’s easily one of the best growth stocks to buy of all time.

A top Canadian dividend stock to buy

Finally, if you’re a dividend investor, you may want to take advantage of the discount in TransAlta Renewables (TSX:RNW) shares.

TransAlta Renewables is one of the top Canadian green energy stocks to buy for the long run. And it’s also one of the most attractively priced.

It’s currently trading roughly 20% off its 52-week high. Plus, the stock offers a dividend yield of 4.75%, pretty significant for the green energy industry.

The company’s portfolio is highly contracted, which makes its operations extremely safe. And because the company aims to pay out most of its cash flow, it’s the perfect investment for dividend investors.

So if you’re looking for a top Canadian dividend stock you can buy and hold for years, a green energy stock like TransAlta renewable is the perfect investment.

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 CORUS ENTERTAINMENT INC., CL.B, NV. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Stocks for Beginners

Young woman sat at laptop by a window
Stocks for Beginners

3 Stocks Beginners Can Buy in 2023 and Hold for Decades

Are you looking for a simple portfolio to get started as an investor? These three stocks are top performers and…

Read more »

Dividend Stocks

Slow and Steady: Buy this Railroad Stock Now to Win the Race

Investors looking for a solid and growing income should pick up shares in this railroad.

Read more »

A brown bear sitting on a rock
Stocks for Beginners

Where to Invest $10,000 in a Bearish Market

Here are some great options for low-risk and high-risk investors alike.

Read more »

retirees and finances
Dividend Stocks

RRSP Investors: Should You be Worried During a Recession?

RRSP savers might feel like gagging as they watch their investments fall, but stay strong! Especially with these TSX stocks.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Stocks for Beginners

How I’d Build a TFSA if I Had to Start Over

Are you looking to start a TFSA? Here’s how I would build one if I had to start over.

Read more »

Stocks for Beginners

3 Top Stocks to Buy Now in a Once-in-a-Decade Opportunity

Don't wait. These three top stocks are the perfect additions to your portfolio and aren't likely to remain at these…

Read more »

retirees and finances
Dividend Stocks

How to Create a Million-Dollar TFSA in Two Decades

Your TFSA could create riches you didn't know were possible, but only if you commit again and again to your…

Read more »

Coworkers standing near a wall
Stocks for Beginners

2 Unassailable Earnings Growth Stocks for a Wobbly Economy

Aritzia and another top growth stock that could be hot performers through 2023 and beyond.

Read more »