Investing in TSX is not an easy task in this current bull market. Indeed, high valuations provide the setup for investors to make easy mistakes. Finding the best Canadian stocks out of the bunch thus becomes a more difficult task.
However, those with a truly long-term investing time horizon have some great options to choose from. Let’s look at three of my top picks right now in this regard.
Top Canadian stocks: Algonquin Power
Algonquin Power (TSX: AQN)(NYSE: AQN) is one of the most desirable utilities plays in Canada right now. Indeed, this company’s mix of regulated utilities assets and renewables-oriented utilities exposure is among the best in its class.
Accordingly, I view Algonquin as a utilities play with a much better growth profile than its peers. This company’s geographic exposure is also superior to many of its peers, with operations across the Caribbean, Chile, Canada, and the U.S.
As a new entrant into the Dividend Aristocrat space, after paying a dividend for over a decade, Algonquin remains a top dividend pick of mine as well. This company’s 4.4% dividend yield is bond-like in nature and also paid in U.S. dollars. For Canadian investors, that’s a big deal from a currency diversification perspective.
Restaurant Brands
One of the top Canadian stocks I’ve been pounding the table on of late is Restaurant Brands (TSX: QSR)(NYSE: QSR). That’s for good reason.
This is one of the top global stocks in the fast-food space. With banners like Burger King, Popeyes Louisiana Kitchen, and Tim Hortons, investors are getting access to some of the best brands in the world. These brands are ones that have shown impressive growth potential, particularly in Asian markets such as China.
Additionally, Restaurant Brands’s core business has been hit hard as a result of the pandemic. Accordingly, as a pandemic reopening play, there’s a lot to like about Restaurant Brands’s positioning right now.
All signs point to this stock being well positioned for stability and long-term growth. For long-term investors, there’s a lot to like about where QSR stock is trading right now.
Royal Bank of Canada
Speaking of stability, Royal Bank of Canada (TSX: RY)(NYSE: RY) has been one of the top Canadian stocks to buy in this regard.
This big Canadian bank is one of the global giants in the banking world. The company’s significant lending operations as well as growing wealth management and brokerage businesses continue to provide investors with impressive earnings growth over time. Royal Bank, similar to its peers on this list, has returned a tremendous amount of value back to shareholders in the form of dividends and share buybacks over the years.
I think Royal Bank is as stable a core portfolio holding as investors can ask for. Accordingly, those looking to add to a position may want to do so on weakness moving forward. This is a stock that has gone on a nice run but has pulled back nicely on various occasions.
