Many investors are worried about what the stock market might do over the coming months. This is because we’ve seen the market fall for much of the past year. In fact, since November 2021, the TSX has fallen more than 10%. However, I believe it’s still possible to be successful in the stock market, despite the recent downturn.
In this article, I’ll discuss three winning stocks that Canadians should consider buying, regardless of what the market is doing.
This stock has been very successful
As far as winning stocks go, few on the TSX can compete with Constellation Software (TSX: CSU). Since its initial public offering (IPO) in 2006, Constellation Software stock has gained more than 11,700%! That represents a compound annual growth rate (CAGR) of more than 30% over the past +16 years. In other words, a $10,000 investment made around its IPO could be worth more than $1 million today.
Since its founding, Constellation Software has been led by Mark Leonard. Under his leadership, this company has acquired hundreds of vertical market software (VMS) businesses. For much of its history, Constellation Software has targeted small- and medium-sized businesses for acquisition. However, with the recent addition of large-scale VMS businesses among its targets, investors could see this company’s business boom over the next few years.
A stock that could be a cornerstone holding in your portfolio
The railway industry has been instrumental in the development of our country. Even today, by rail is the only viable way to transport large amounts of goods over long distances. Until an alternative is found, railway companies could remain in high demand. Therefore, as railway companies have acted as the backbone of Canada, Canadian National Railway (TSX: CNR) could serve as the backbone of your portfolio.
Over the years, Canadian National has been a great stock to hold for its strong capital appreciation and dividend distribution. Over the past five years, investors have seen this stock gain nearly 60% in value. In terms of its dividend, Canadian National has managed to increase its distribution in each of the past 26 years. Over the past five years, that dividend has exhibited a CAGR of 10%.
A company with a resilient business
If you’re still in the hunt for a stock to buy regardless of what the market looks like tomorrow, then consider Waste Connections (TSX: WCN). As its name suggests, this company provides waste collection services. Waste Connections’s coverage area includes 43 states in the U.S. and six Canadian provinces. What makes Waste Connections so interesting is the fact that waste collection services will continue to be needed regardless of what the economy looks like. Humans will continue to produce waste, and we’ll need that cleaned up.
Over the past year, Waste Connections stock has gained nearly 5%. That outpaces the broader market by a decent margin. This stock’s performance has been even more impressive over the past five years. Over that time, Waste Connections stock has gained more than 97%! Waste Connections has a solid stock and a business that’s very easy to understand. This is a stock that all investors should consider buying today.
