My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

If you’re like me, your favourite TSX stocks are the ones that remain in the black. At a time when the entire stock market is red, Motley Fool investors want companies that have been doing well no matter what.

Today, I’m going to go into detail about the ones doing well for me. And those TSX stocks are Canadian Pacific Railway (TSX:CP)(NYSE:CP), NorthWest Healthcare Properties REIT (TSX:NWH.UN), and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM).

CP stock

You’ll notice in my above graph that I’ve chosen to look at the last five years for these companies. I think that’s important to point out. It’s why I invested in these TSX stocks in the first place — for long-term holds over short-term gains.

And it’s been paying off, as you can see. Shares of CP stock for example are up 178% at the time of writing in the last five years. That’s a compound annual growth rate (CAGR) of 22.7%. Furthermore, I was able to lock in a dividend. That dividend has since been cut, but I’m fine with that.

Why? CP stock is making an enormous investment (US$31 billion, to be exact) to purchase Kansas City Southern. While some balked at first, many are now on board with CP stock and its new ability to be the only railway able to run from Canada through to Mexico. It was a huge win, one that will continue paying off for decades. And as Motley Fool investors realize that, shares continue to climb.

Shares are up 13% year to date and 12% in the last month.

NorthWest

NorthWest REIT is another of my top-performing TSX stocks. As you can see, it too has seen massive growth. It’s clear the pandemic helped that along, with investment coming into healthcare properties. This has allowed the company to purchase more properties and expand — especially when low interest rates before this year helped along new lease agreements.

Those agreements now average 14.1 years. Talk about stable. That also means the REIT has a stable dividend at 6.14% currently. And it continues to buy up more properties to expand its portfolio. Once that becomes slower, there could be a dividend boost for this stock that’s remained at a $0.80 annual dividend since coming on the market.

Shares of NorthWest are up 72% in the last five years for a CAGR of 11.45%. It’s down 1.63% year to date and back up 8% in the last month.

CIBC

Finally, CIBC has been a great performer for me over the years. It offers one of the highest dividends out there, all while remaining one of the safest TSX stocks. That comes with being a Big Six bank, with provisions for loan losses that become seriously beneficial at times like these.

But what’s even better is since the stock split, more and more Motley Fool investors and others have taken a second look at the stock. You get cheap TSX stocks, high dividends, and an all-but-guaranteed rebound? It doesn’t get much better than that.

With CIBC now leading the charge in customer satisfaction, finding new products to bring in new clientele, it’s a great time to buy up the company along with other TSX stocks — especially with shares up 8.8% in the last month.

Shares of CIBC are also up 52% in the last five years for a CAGR of 8.67%, but cheap trading down 10.5% year to date at 9.14 times earnings. So, lock in that 5.11% yield while you can!

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 Amy Legate-Wolfe has positions in CANADIAN IMPERIAL BANK OF COMMERCE, Canadian Pacific Railway Limited, and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Dividend Stocks

Man data analyze
Dividend Stocks

1 Recession-Resistant Stock to Buy and Hold Forever

Brookfield Renewable is a recession-resistant high dividend stock trading at a cheap valuation in 2024.

Read more »

potted green plant grows up in arrow shape
Dividend Stocks

3 Hypergrowth Stocks to Buy in 2024 and Beyond

There are stocks growing, and there are stocks hitting all-time highs. These are three that I would therefore consider on…

Read more »

edit Sale sign, value, discount
Dividend Stocks

2 Dividend Stocks That Look Dirt-Cheap Right Now

Nutrien (TSX:NTR) and Suncor (TSX:SU) are great dividend stocks for value hunters going into March 2024.

Read more »

The sun sets behind a high voltage telecom tower.
Dividend Stocks

TFSA Passive Income: Is Fortis Stock a Buy Now?

Fortis has increased the dividend annually for 50 years.

Read more »

Construction work on a site
Dividend Stocks

1 Construction Stock That Has Created Millionaires and Will Continue to Make More

Stantec (TSX:STN) stock's post-pandemic rally has been phenomenal. A 2024-2026 strategic plan gives the growth stock has more room to…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

This dividend stock can easily surpass the TSX today, but even more growth is likely to get back to all-time…

Read more »

Plane on runway, aircraft
Dividend Stocks

Down 40% From All-time Highs, Is Cargojet Stock a Good Buy Today?

Cargojet stock trades at a significant discount to consensus price target estimates in 2023.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

2 Companies With the Firepower to Raise Their Dividends

Here are three top Canadian dividend stocks long-term investors may want to consider, based on their potential for dividend growth…

Read more »