Besides finding the best stocks to buy, the most important aspect of long-term investing is to have discipline and patience. That’s why, as May begins, and some of the best Canadian stocks have been selling off lately, this is the perfect opportunity for long-term investors to buy them while they’re cheap.
When stocks begin to fall in value, especially rapidly, it undoubtedly creates a significant opportunity. However, part of being disciplined and patient means that you don’t just buy any stock right away or look for the cheapest investments possible.
Instead, the first step is to understand why the market is selling off and evaluate what impact, if any, it will have on the long-term potential of the best stocks in Canada.
Once you’ve determined that it’s an excellent opportunity and the headwinds facing the market will only be short term, then you can focus on finding the best Canadian stocks to buy for the long haul.
Wth that in mind, if you’re looking for the best stocks to buy in May, here are three picks that are ideal for long-term investors.
A top dividend-growth stock
One of the best stocks you can buy today if you’re looking for a highly reliable stock that won’t be very volatile is North West Company (TSX:NWC). And after the stock has recently sold off slightly, it creates the perfect opportunity for investors to buy this Canadian Dividend Aristocrat.
North West owns grocery stores and supermarkets in remote communities, mostly in northern Canada and Alaska. Therefore, the stock is perfect for this environment, and although it offers the lowest growth potential of the three stocks on this list, it’s easily the most reliable. Plus, it’s a high-quality dividend-growth stock.
So, after its recent pullback, and with the stock now offering an impressive yield of roughly 4.2%, it’s certainly one of the best stocks you can buy in May.
A top Canadian crypto stock to buy before the market rallies
If you’re an investor looking for a bit more upside potential out of your investments, investing in cryptocurrencies right now, while they are out of favour, is an excellent idea. That’s why Galaxy Digital Holdings (TSX:GLXY) is one of the best Canadian stocks that you can buy in May.
Galaxy is one of the best crypto stocks to buy simply because it offers investors so many opportunities. With the stock having several different operating segments, it’s diversified its business well, offering more resiliency but also more opportunity for massive growth.
Plus, Galaxy’s principal investment division, which finds and invests in up-and-coming blockchain businesses and new technologies, offers incredible opportunities for growth over the long haul.
If you’re looking for high-quality stocks to buy in May, crypto stocks like Galaxy are certainly ones to consider.
One of the best Canadian tech stocks to buy in May
Lastly, in addition to cryptocurrencies, other tech stocks continue to be some of the best investments to buy in May. And right now, of all the tech stocks in Canada, one of the best to buy is Magnet Forensics (TSX:MAGT).
Magnet Forensics is a developer of digital investigation software to help acquire and analyze digital evidence from cybercrimes. In fact, the company provides digital investigation solutions for more than 4,000 enterprises and public safety organizations.
This is an industry that has massive growth potential, especially as our lives continue to be impacted by technology every day. The industry is estimated to grow 10-fold from 2020 to 2026. And by the end of 2026, it’s estimated that total damages as a result of digital crimes will be more than US$10 trillion.
Naturally, this is an industry where a high-quality growth stock like Magnet has a major runway, which is why it’s one of the best stocks to buy in May. In its recent earnings report, Magnet reported a 35% increase in revenue from the same quarter the year prior.
Therefore, while the stock is trading ultra-cheap, it’s certainly one of the best stocks to research and potentially buy in May.
