Opinion: The Top Stock in the TSX Right Now

Here’s why Restaurant Brands (TSX:QSR) could be the top stock on the TSX worth buying for its total returns over the coming decades.

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This bear market isn’t all bad news. Many investors are buying more than ever, given how far many stocks have tanked. Smart value investors may look to load up on top stocks that provide long-term upside at these more reasonable levels.

That said, there are also a fair number of stocks that are holding up quite well in this market. Investors seeking defensive total return growth over time may be looking at these stocks. One such company I think fits this profile and is among the best stocks on the TSX right now is Restaurant Brands International (TSX:QSR).

Here’s why I think Restaurant Brands is a company every long-term investor should be thinking about right now.

A top stock that’s primed for growth

Most investors are well aware of Restaurant Brands’s defensive business model. The parent company of Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs, the company’s fast-food portfolio provides stability in all markets. Indeed, one could argue that in a recession, dining out at fast-food restaurants will be the go-to option for may families. Thus, it’s a recession-resistant operation Restaurant Brands is running.

That said, this is also a company that’s eying significant global growth. The company’s recent partnership with McWin is one such example of the company’s ambitions. McWin will offer active assistance to help build a robust presence in eastern Europe. This partnership provides McWin franchise and development rights in the Czech Republic, Romania, and Poland for Burger King and in the Czech Republic and Poland for Popeyes. With this, McWin plans to open more than 600 restaurants over the next 10 years in the mentioned three countries.

This will help QSR expand exponentially and connect to its prospective customers better. In addition, the expansion will also mean higher revenue generation for the company.

The combination of growth and income

In addition to this strong growth profile, many investors (myself included) also like QSR stock for its dividend income. With a current dividend yield of 3.3%, investors can combat inflation and create a passive-income portfolio over time.

I expect Restaurant Brands to continue to raise its dividend in line with its cash flow growth over time. Thus, considering the company’s robust growth model in many global markets, this is a dividend-growth stock worth considering.

Restaurant Brands has consistently raised its dividend since 2014. While that’s not necessarily the kind of multi-decade record other stocks have, it’s worth noting that QSR stock is a relatively newly listed stock. I expect the company to continue to put up dividend hikes on an annual basis for the foreseeable future.

Accordingly, for long-term investors seeking total returns, QSR is among the top stocks to buy right now.

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 Chris MacDonald has positions in Restaurant Brands International. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

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