The broader market is continuing to rally in 2021. September is the eighth month in a row when the TSX Composite Index is inching up with a sharp recovery across sectors. Even if you’ve missed this big rally so far, you still have the opportunity to gain from consistently improving economic growth and corporate earnings outlook. I’m highlighting three of the best TSX stocks in this article that could keep yielding solid returns in the long term.
Enbridge stock
Enbridge (TSX: ENB)(NYSE: ENB) is one of the best TSX stocks to bet on right now. Last year, the COVID-19-driven challenges hurt this energy company’s solid long-term track record of posting consistent earnings growth. Nonetheless, its financials are recovering fast this year due to a sooner-than-expected economic recovery and a strong demand outlook for energy products. These could be some of the reasons why Street analysts expect Enbridge to post strong earnings of $2.80 per share in 2021 — notably higher from its adjusted earnings in 2020 and 2019.
Moreover, Enbridge’s recent move to acquire Moda Midstream Operating LLC — one of the key U.S. Gulf Coast crude export facilities — could accelerate its financial growth further in the coming years. Besides these positive factors, ENB stock also pays handsome dividends to its investors, and it currently has an impressive dividend yield of 6.6%.
Canadian Natural Resources stock
Canadian Natural Resources (TSX: CNQ)(NYSE: CNQ) is another great Canadian energy stock to add to your portfolio right now. Its stock price has risen by about 44% this year so far to $43.89 per share — outperforming the broader market by a wide margin.
Canadian Natural’s sales growth has remained strong in 2021 after it fell by nearly 26% last year. Notably, its total revenue rose by about 78% year over year in the first half of the year to $13.1 billion. This revenue figure also reflected about 21% increase from its sales in the first half of 2019. That’s why Canadian Natural’s annual earnings this year are expected to increase beyond its pre-pandemic levels. I expect these positive expectations amid the rising oil demand outlook and prices to keep CNQ stock soaring in the coming months as well.
The company’s decent 4.3% dividend yield gives long-term investors another reason to buy its stock right now.
Crescent Point Energy stock
The year 2021 has been pleasantly surprising for Crescent Point Energy (TSX:CPG)(NYSE:CPG) investors. Its stock has risen by 66% in 2021 to $4.92 per share after losing nearly 49% of its value last year. The company’s consistently strengthening balance sheet, significantly improving debt position, and rising cash flows could be some of the key reasons fueling its recent stock rally.
On September 13, Crescent Point Energy’s stock price soared by more than 14% after the company increased its fourth-quarter dividend and gave a strong preliminary outlook for 2022. I expect Crescent’s plans to increase the production levels — while generating excess cash flow — to keep investors’ optimism alive and help its stock yield solid returns in the long term.
