The Motley Fool

3 Top Canadian Stocks to Win September

Where to Invest?
Image source: Getty Images

Relatively few investors stick to a strict schedule. They don’t buy whatever stock is at the right price point and valuation at a particular time. Rather, they track the number of securities, and whenever one (or more) of them becomes attractively priced, they make their move.

That requires you to always have a decent amount of cash on hand, and the time it spends at cash can be considered a lost opportunity since it could have been the time it spent growing as an asset.

And if you are an investor who follows a specific investment schedule and is looking to make your monthly investments, there are three stocks that should be on your radar.

A power distribution company

Emera (TSX:EMA) is a Nova Scotia-based power distribution company that offers a juicy 4.3% yield, a decent capital appreciation potential (the 10-year compound annual growth rate is 11.9%), and is currently trading at just a moderately high price. The company has a decent consumer base, i.e., 2.5 million utility customers in six countries and $31 billion worth of assets.

About two-thirds of the company’s earnings come from the U.S., and the company has made great strides to rid itself of coal-based energy and improving its carbon footprint. In 2005, almost half its power came from coal-based plants. Now, it makes just 15% of its total power generation from coal and has grown its renewable-based power generation quite a bit.

A renewable energy company

If green energy is something you are interested in, then Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is another company that should be on your radar. It was a relatively slow growth stock before the pandemic and the 2020 market crash, but its value spiked in the recovery phase, and the company grew its market value by over 126% in less than a year.

It has come down a long way from its 2021 spike (about 18.5%), but the stock is still a bit expensive. However, the downward movement of the stock has pumped up the yield to modestly high levels (2.3%). Brookfield Renewable is a major player in the green energy arena, with a portfolio of 6,000 power generation facilities in North America alone and a total capacity of 200,000 megawatts.

A retail company

Loblaw Companies (TSX:L) is part of Canada’s largest retailer conglomerate, that is, George Weston. Loblaw has about 2,400 stores around the country, and nine out of 10 people live within 10 kilometres of a Loblaw store. Like its competitor Metro, Loblaw has pies in two of the most stable businesses, groceries and pharmacies.

This partially shelters the company from significant market downturns. The stock barely dipped in the 2020 market crash and was back to its pre-pandemic levels in less than two months. Currently, the stock is growing at a decent pace and has grown 38% in 2021. It’s also a Dividend Aristocrat and has grown its payouts for nine consecutive years. The current yield is 1.6%.

Foolish takeaway

All three businesses are in a powerful position within their industry, with decent financials and long-term growth prospects. While the yields are not too high, they are still added incentives to invest in the three stocks.

f September’s pricing and valuation don’t seem right, you might consider waiting for a dip or a market-wide correction before buying, but don’t wait too long, or the bull market might develop momentum.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends EMERA INCORPORATED.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.