These 2 Canadian Stocks Are up More Than 100% This Year: Can They Keep Up the Pace?

These two top Canadian stocks have had incredible performances so far this year and show no signs of slowing down.

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There have been several Canadian stocks that have had an incredible rally this year. The TSX Composite Index itself is up by over 20% so far year to date. However, while many stocks have had a strong rally this year, some of the best stocks have earned massive returns for investors.

For example, Freehold Royalties (TSX:FRU), a top energy stock, has gained 122% this year. Similarly, goeasy (TSX:GSY), a specialty finance stock, has also had an incredible performance, already more than doubling investors’ money this year.

Often, after major rallies like this, stocks can pull back or at least trade flat for a while. However, other times, it can be the start of a much longer bull run. And in the case of these two top Canadian stocks, it looks like they are just getting started.

Freehold Royalties: A top Canadian dividend stock

There are many energy stocks that have had tremendous performances this year. One of those companies is Freehold Royalties. While the stock has gained 122% in price this year, because it’s also an attractive dividend stock, investors have seen a total return of 130% so far year to date.

And while Freehold has been an incredible stock in 2021, its recovery actually started roughly 12 months ago. In that time, we’ve seen oil prices pick up, but the amount of oil being produced has also increased, which, for a royalty company like Freehold, means a major increase to its revenue. This recovery has led to four separate dividend increases over the last year and a total return for investors of 219% over the 12-month period.

And going forward, the stock still has a tonne of potential to keep growing. In addition to the fact that commodities prices are rallying rapidly as inflation continues to soar, Freehold has also been expanding its portfolio.

So, if you’re looking for a top Canadian stock that can offer attractive growth alongside an impressive dividend, which currently yields 5.1%, Freehold is one of the best you can buy today.

goeasy: A rapidly growing specialty finance stock

Another high-quality Canadian stock that’s had an impressive performance this year is goeasy, a specialty finance stock that provides loans and leases household goods, such as furniture, to consumers.

The company has been an excellent growth stock for years, and 2021 has been no different. So far, year to date, goeasy earned investors a return of 104%. And much like Freehold, it’s also been recovering for over a year now, earning investors 180% over the last 12 months.

One of the main reasons goeasy has been able to grow so fast is that its loan book has been expanding rapidly, while its charge-off rates have remained low. There was concern from investors when the pandemic first started that it could be severely impacted by all the shutdowns and the impacts that would have on consumers’ income.

However, thanks to a strong portfolio of loans, and tonnes of government stimulus, that hasn’t materialized, and goeasy is as profitable as ever. If you’re worried that you’ve missed out on all the major growth, though, given that the stock is up by more than 750% over the last five years, I wouldn’t be. goeasy is still a relatively small company with a market cap of just over $3 billion.

So, if you’re looking for a high-quality Canadian stock in the financial sector that has the potential to grow your capital for years, goeasy looks like it’s in a league of its own.

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 FREEHOLD ROYALTIES LTD. The Motley Fool recommends FREEHOLD ROYALTIES LTD.

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