Some of the best Canadian stocks to buy are also some of the most popular investments, and for good reason. In addition to a massive blue-chip stock having a significant market cap — meaning lots of investors can own it — they are also some of the best long-term businesses to own.
So it makes sense that so many investors own the stock. Other times, though, the best Canadian stocks to buy are in companies that are unique or lesser-known.
Sometimes stocks can offer potential, but if it’s a crowded trade, most of the upside will be lost before you even make your investment. Just look at Air Canada‘s performance over the last six months. Even with its rally lately, it still hasn’t eclipsed its six-month high of $28 set in June. This is in part because its been one of the most crowded recovery trades since the pandemic began.
So often, some of the best investments will be in lesser-known companies with unique business models. Therefore, with that in mind, here are two to consider today.
Alaris Equity Partners: An excellent stock for dividend investors
Alaris Equity Partners (TSX:AD.UN) is one of the most unique Canadian stocks to consider today. The fund invests in small and medium-sized private businesses taking a preferred equity position that receives monthly distributions.
It then uses this cash to payout to investors and looks for new companies to invest in. For years Alaris has been a well-run business. And it even performed pretty well during the pandemic, especially for a company that can’t necessarily control its operations, otherwise than to do quality due diligence ahead of time.
At the worst point in the pandemic, the company’s sales saw an impact of just over 20%. So the company did trim the dividend, but already its business has recovered and looks strong, and Alaris has begun to increase the dividend once again.
The dividend stock aims to provide investors with a stable, predictable, and growing stream of passive income. So to do this, it looks for high-quality companies that can use Alaris’ capital to grow but is also generally robust.
This is what makes the dividend so safe and why a fund like Alaris was able to weather the pandemic storm so well.
Today the stock yields an impressive 6.8%. So if you’re looking for a high-quality Canadian dividend stock to buy and hold for years, Alaris Equity Partners is an excellent choice.
Voyager Digital: A top Canadian crypto stock to buy for the long haul
Another unique Canadian stock that should have tonnes of long-term upside is Voyager Digital (TSX:VOYG), a cryptocurrency platform that operates in the United States.
Voyager is an excellent stock for a couple of reasons. The fact that it’s in the cryptocurrency industry gives it a tonne of potential over the next few years as the industry grows in popularity. However, it also has a unique business model.
Not only does it allow cryptocurrency investors to buy roughly 60 of the most popular cryptocurrencies, but through its proprietary software, it also helps find the cheapest and most efficient way to source the cryptocurrency. Voyager’s platform can look on several different exchanges to find the cheapest and most efficient way to buy cryptocurrencies for you.
Plus, after investors have purchased their cryptocurrencies, Voyager then offers the ability to earn a yield on your assets. This is a business that should continue to grow at an impressive rate as cryptocurrencies gain more mainstream traction.
So if you’re looking for a high-potential Canadian stock to buy for the long haul, Voyager Digital is one of the best to consider.
