3 of the Best Canadian Stock Industries to Find Investments in 2022

As we head into the new year, here are three industries where Canadians can find some of the best stocks to buy for 2022.

| More on:
Man holding magnifying glass over a document

Image source: Getty Images.

As we head into 2022, it’s time to reassess our portfolios and start considering some of the best Canadian stocks we want to buy for the new year.

Of course, every investor will be different, and what you buy will depend on how much diversification you have and where you already have exposure. With that being said, though, some stock industries will be better to invest in during 2022 than others.

It’s crucial to take into account the current environment. However, you also want to buy stocks that have long-term potential that you can hold for years.

So, with that in mind, here are three of the best Canadian stock industries for 2022.

Consumer defensive stocks can help protect your portfolio in 2022

With the current economic environment that we are in, and with many investors likely wanting to add some defence to their portfolios, a top industry to find Canadian stocks for 2022 would be consumer staples.

Consumer staple stocks such as North West Company (TSX:NWC) can offer a tonne of advantages in this environment. First and foremost, these companies are generally high-quality businesses that are incredibly reliable.

So, if volatility continues to pick up in 2022, a consumer staple stock like North West would be an excellent investment that can protect your capital while continuing to return you passive income.

Another advantage these stocks have is that they can absorb price increases a lot better than many other industries, which is ideal in a high-inflation environment. Consumer staple stocks can absorb the price increases by passing these increased costs on to consumers, allowing them to maintain their margins. North West has been particularly good at this, especially after it massively improved its margins in the last few years.

Today, the stock yields an impressive 4.3%, making it one of the best Canadian stocks to buy in the consumer staples industry for 2022.

Renewable energy is an excellent industry to invest in for the long haul

Another excellent stock industry I’d be looking at investing capital in during 2022 is renewable energy.

Renewable energy continues to offer a tonne of long-term potential. It will take decades to ramp up our renewable energy to the point where it can replace fossil fuels, making this an industry you’ll want to be invested in as early as possible.

And what’s positive for investors is that green energy stocks were some of the worst performers in 2021. So, as we enter 2022, the renewable energy industry will be one of the best for finding high-quality Canadian stocks that are trading cheap.

Cryptocurrencies have the potential to be the best industry to find Canadian growth stocks 2022

Lastly, once again, cryptocurrencies have the potential to be some of the best Canadian growth stocks in 2022. The entire industry has seen a massive revolution in the last year, driven by several new projects in the space.

Users are flooding the cryptocurrency industry, as it continues to offer exciting potential. However, the fact that institutions and companies are looking for ways to gain exposure to the growing space is also a telling sign that the blockchain industry is here to stay.

There are several high-potential cryptocurrency stocks to consider, whether it’s an ETF, a mining stock, or even a high-potential financial services stock like Galaxy Digital.

So, if you’re an investor that’s yet to gain exposure to cryptocurrency or is looking to add more growth to their portfolios for 2022, cryptocurrency stocks are some of the best investments for Canadians to consider.

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 Galaxy Digital Holdings Ltd. and THE NORTH WEST COMPANY INC. The Motley Fool recommends THE NORTH WEST COMPANY INC.

More on Stocks for Beginners

Man holding magnifying glass over a document
Stocks for Beginners

3 Cheap Canadian Stocks With P/E Ratios of Less Than 10 Times

The price-to-earnings (P/E) ratio is one of the most basic valuation metrics for investors to find cheap Canadian stocks. It …

Read more »

Caution, careful
Stocks for Beginners

Don’t Get Taxed by Surprise: The TFSA’s Dirty Little Secret

Did you know that you can be taxed in a Tax-Free Savings Account (TFSA)? It’s not common knowledge, but it’s …

Read more »

Question marks in a pile
Stocks for Beginners

New Investors: Do You Need Bonds in Your Investment Portfolio?

The traditional investment portfolio would have a bond and equity component. Do you really need bonds in your investment portfolio? …

Read more »

exchange traded funds
Stocks for Beginners

3 of the Best ETFs to Buy in February

After all that’s gone on in the stock market over the last couple of months, there are many high-quality ETFs …

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

Planning to Invest? 3 Top TSX Stocks to Buy in Your TFSA

With the Canadian stock market currently going through a downturn, now’s the time to be investing in TSX stocks. The …

Read more »

exchange-traded funds
Stocks for Beginners

3 Top ETFs for Tax-Free Passive Income in Retirement

Looking to earn copious amounts of tax-free passive income in retirement? If so, it pays to hold dividend ETFs in …

Read more »

stock research, analyze data
Stocks for Beginners

The 3 Best Canadian Stocks to Buy During a Market Bottom

The S&P/TSX Composite Index continues to go through a turbulent beginning to 2022. In fact, as of writing it hit …

Read more »

TSX Today
Stocks for Beginners

3 Canadian Growth Stocks to Buy That Are Outperforming in the Recent Volatility

The recent market sell-off has caught a lot of headlines. It’s been quite substantial, but you may have noticed not …

Read more »