3 of the Best Canadian Stocks to Buy After a Strong Earnings Season

After many Canadian stocks reported impressive earnings and attractive guidance over the last few weeks, here are three of the best to buy now.

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This earnings season was another strong result for many companies giving investors a lot of choices when looking for some of the best Canadian stocks to buy. Businesses continue to grow and figure out new ways to expand their operations in this environment.

There are plenty of high-quality stocks executing well, from companies that are finally beginning to recover to others that have seen only a small impact on their operations throughout the pandemic.

So without further ado, here are three of the best Canadian stocks to buy after reporting impressive earnings over the last month.

A top Canadian restaurant stock

If you’re an investor who’s still looking to find high-quality Canadian stocks with recovery potential, Boston Pizza Royalties (TSX:BPF.UN) is one to consider.

Boston Pizza is one of the best Canadian stocks to buy now as its recovering rapidly from the pandemic. The reduction of capacity restrictions has played a significant role in Boston Pizzas’ restaurants seeing a recovery in their capacity.

As of the third quarter, Boston Pizza’s sales recovered the most so far and reached the closest level it’s been to pre-pandemic levels since the public health crisis began.

This allowed Boston Pizza to increase its dividend back toward pre-pandemic levels. Today that dividend yields an impressive 6.4%, yet it still only pays out about 74% of what it did prior to the pandemic.

So over the next year, as the economy continues to strengthen and recover further, and capacity and gathering restrictions continue to come down everywhere, Boston Pizza has the potential for more growth in its unit price and the dividend.

If you were to buy today and the fund increased its dividend to pre-pandemic levels, your investment would yield over 8.7%.

So if you’re looking for a high-quality Canadian recovery stock to buy, Boston Pizza offers tremendous potential.

A top energy stock for dividend investors

Energy stocks reported some of the strongest gains year over year, which is not surprising. Not only have energy prices and the demand for commodities rebounded significantly since last year, but oil prices, for example, are the highest they’ve been since 2014.

That’s making a lot of energy stocks some of the top Canadian stocks to buy right now, including Freehold Royalties (TSX:FRU), which has earned investors a total return of more than 130% already year to date.

Freehold is an excellent stock because it’s leveraged to higher oil prices and performs well when the industry is seeing major tailwinds. However, it’s also a highly safe stock, with an incredible balance sheet and widely diversified operations.

This is what makes Freehold such an excellent stock to own, especially today, as it yields an impressive 6.2% after five separate dividend increases over the last year. Plus, there is still room for the company to increase the dividend again over the coming months.

So if you’re looking for a top Canadian stock to buy today, Freehold Royalties is one of the best energy stocks to consider.

An incredibly strong retail stock that continues to impress

The retail sector is always tricky to invest in, but that’s been amplified by the pandemic. With that being said, though, Aritzia (TSX:ATZ) continues to show investors that it can grow both quickly and consistently.

The women’s fashion company has had an incredible strategy for years now. Aritzia carved out its own segment in the fashion industry, selling products and goods that are higher quality and more expensive than traditional fast-fashion stores but more affordable for the masses than true luxury brands are.

In addition, its boutiques have been designed extremely well, and the long-term goal of each boutique is to act as a massive walk-in marketing display to help drive sales on its e-commerce platform.

So Aritzia is one of the best Canadian stocks to buy now because, after years of impressive growth expanding across Canada, the company is now tapping into the U.S. market, almost 10 times the size.

While many retail companies saw devastating impacts on their sales as a result of all the shutdowns from the pandemic, Aritzia’s operations have been impressive.

So if you’re looking for a high-quality Canadian stock to buy today, Aritzia offers tonnes of long-term growth potential.

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 BOSTON PIZZA ROYALTIES INCOME FUND and FREEHOLD ROYALTIES LTD. The Motley Fool recommends FREEHOLD ROYALTIES LTD.

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