There’s a reason Canadian investors love dividend stocks and why they are always some of the best stocks you can buy for your portfolio.
Having the ability to buy investments that can grow in value but will also return cash almost immediately after you make the investment is an attractive proposition.
As long as the company you’re buying is in a position to return cash to investors, then it’s an excellent opportunity. When you receive cash consistently, it allows you to rebuild your cash position quicker and find new investments or add to your existing holdings.
And the more investments you’re buying, the faster you can compound the growth of your portfolio.
Here are three of the best Canadian stocks to buy now that can grow significantly in value and will return you cash consistently.
A top Canadian real estate stock
One of the top goals many Canadian investors have is to own a rental property, which makes a lot of sense. You can own an asset that returns you income every month and has the potential to appreciate in value over time.
But while a rental property can be expensive and risky considering you have no diversification, another option is to buy top real estate stocks such as Canadian Apartment Properties REIT (TSX: CAR.UN).
CAPREIT owns residential real estate assets all across Canada and even in parts of Europe. It’s incredibly diversified and an excellent way to gain exposure to an investment that will return cash every month and grow in value over the long run.
In fact, thanks to CAPREIT’s strong execution and its assets gaining in value, over the past five years, investors have earned a total return of 86%, or a compounded annual growth rate upwards of 13.2%. That’s not all, though. Investors have also seen the passive income they receive from CAPREIT grow by nearly 15% as well over that stretch.
If you’re looking for Canadian stocks to buy that can consistently gain in value and return growing passive income, CAPREIT is an excellent choice.
A top green energy company
Another monthly dividend stock to buy and hold long term is Northland Power (TSX: NPI), one of the best green energy stocks that Canadians can buy.
Green energy is an industry that has decades of growth potential. And so far, Northland has proven to be one of the best-performing growth stocks in the industry. Plus, with the company now in the midst of a significant capital plan, Northland is looking to expand its operations considerably.
On top of this growth potential, though, it’s also an incredibly resilient company with defensive operations. It’s a stock you can count on to continue to return monthly income.
And as it brings new assets online or continues to make attractive acquisitions to grow its portfolio, as it’s done in the past, Northland stock should continue to gain value.
If you’re looking for top Canadian stocks to buy, Northland is an attractive monthly dividend stock.
One of the best value stocks to buy now
Lastly, a stock that offers some of the best value right now, in addition to a dividend that currently yields 4.9%, is Corus Entertainment (TSX: CJR.B).
With Corus trading below $5 a share, it’s one of the first stocks I think of when looking for companies that can gain in value and return cash to investors. First off, a 4.9% dividend is already highly attractive.
But when you consider that Corus trades at a forward price-to-earnings ratio of just 5.9 times, it’s unbelievably cheap and offers tonnes of upside potential.
Right now, Corus has four analysts covering the stock. Those four analysts have an average target price of $7.31 for Corus, roughly 50% upside from here. However, even the lowest target price is $6.50 — a more than 30% premium to where Corus trades today.
If you’re looking for Canadian stocks to buy that offer value and return attractive passive income, Corus is one of the best there is.
