My 3 Top Stocks for February 2023

Here are three top stocks I think long-term investors should certainly consider when looking at the TSX for growth, value, and dividends.

| More on:
analyze data

Image source: Getty Images

Canada is home to businesses across a variety of industries, including energy, precious metals, finance, technology, and others. Given the current market volatility and talk of an impending market downturn, there are plenty of top stocks to consider on the TSX, which could be become even more appealing as the year progresses. 

Stocks may fall further in the first half of the year as a result of a recessionary weakening in corporate profits, which began in 2022. However, the outlook for the second half of 2023 is brighter, as inflation and interest rate hikes might tone down, and earnings per share may rise. Accordingly, I think these three stocks should be in your portfolio as we head into the second month of 2023.

Top stocks to buy in February: Restaurant Brands 

Restaurant Brands International (TSX:QSR), the company that owns Tim Hortons, increased 1.4% after BMO Capital Markets rated the stock “outperform.”

Furthermore, various analyst reports covering Restaurant Brands has been positive of late. Several equity analysts have offered their thoughts on QSR, most of whom have had positive takes on the company. For example, Cowen recently increased its price target for QSR stock from $58 to $63.

Morgan Stanley did the same, increasing its price target from $71 to $74. The target price set by Royal Bank of Canada for shares of Restaurant Brands International was increased from $70 to $80.

On Tuesday, Feb. 14, Restaurant Brands will announce its financial results for the entire 2022 fiscal year and the fourth quarter. Investors will have the chance to hear directly from Mr. Doyle about his choice to contribute nearly $30 million to RBI and join the team as executive chairman during the event. As of the time of writing, the company has a solid dividend yield of 3.3%. 

Algonquin Power 

This past week, Algonquin Power & Utilities (TSX:AQN) has seen some impressive upside, making upward moves that beat the market. That said, I think investors ought to consider this top stock for more than just its recent price performance.

The company’s core utilities business has driven impressive long-term cash flow growth that investors ought to take note of. As a major player in both the utilities and power-generation sectors, Algonquin provides a unique mix of defensive growth and dividend income.

While Algonquin recently cut its dividend, this is a stock I think is worth considering at these levels. For those seeking defensiveness and passive income, this is a name that’s not very loved right now but could produce outsized returns over time from these levels.


Shopify (TSX:SHOP) is one of the most preferred growth stocks in the tech space. Various analysts agree, with a number of upgrades seen for this top Canadian tech giant.

What I like about Shopify is the company’s long-term growth trajectory supported by strong secular catalysts. For those bullish on the e-commerce space, there are few better bets than Shopify right now. This company provides exposure to small- and medium-sized businesses, which should continue to grow over the long term. Additionally, Shopify’s core platform continues to see robust uptake among larger, more established clients. Accordingly, I think over time, Shopify’s revenue streams will become even more diversified.

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 Algonquin Power & Utilities and Restaurant Brands International. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Investing

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $10,000

Here’s how to build a diversified portfolio with dividend stocks that, as a group, pay out in every month of…

Read more »

A plant grows from coins.
Dividend Stocks

Invest $10,000 in 2 TSX Stocks for $606/Year in Passive Income

Shares of these two fundamentally strong companies can start a worry-free passive income stream.

Read more »

dividends grow over time
Dividend Stocks

2 Top Dividend Stocks That Keep Raising Their Payouts

In addition to their solid dividend growth track record, these top dividend stocks also offer strong growth potential for the…

Read more »

Various Canadian dollars in gray pants pocket

3 No-Brainer Stocks to Buy Under $50

Investing in a core portfolio needs no-brainer stocks you can invest in at any time. These stocks you can buy for…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background

RRSP Pension: 2 Dividend Stocks to Buy on the Latest Dip

These top TSX dividend stocks now offer high yields.

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

How to Turn Your TFSA Into a Gold (or Copper) Mine Starting With $10,000  

These two top stocks can turn any TFSA into a gold mine -- or a copper mine, if you really…

Read more »

Dots over the earth connecting the world
Stocks for Beginners

Emerging Markets: Opportunities for High Returns in 2024

Are you looking for growth this year? Emerging markets could be one of the best areas to seek out high…

Read more »


My Top 5 TSX Stocks to Buy Right Now for Massive Returns in a Decade

These five TSX stocks have impressive operations and solid growth potential, making them five of the best to buy now.

Read more »