There’s no question that the Canadian stock market got off to a hot start to the year. The S&P/TSX Composite Index jumped more than 5% in January. But after trading sideways for most of February, the index is currently priced at just about the same place as it was at the end of January.
Despite the strong start to the year, though, there’s still no shortage of short-term uncertainty in the Canadian stock market. When you consider how unusually high both interest rates and inflation are today, it’s incredibly difficult to predict with any accuracy how the stock market will fare in 2023.
Fortunately, long-term investors don’t need to be overly concerned with the market’s volatility in the coming months. Instead, investors that plan on holding their positions for five years or longer have the opportunity to scoop up shares of many discounted TSX stocks right now.
With more volatility likely on the horizon, I’ve put together a list of three Canadian stocks you can feel good about buying today. And with just $300 today, Canadian investors can own this entire basket.
Brookfield Asset Management
If there’s one stock I’d recommend buying during uncertain market conditions, Brookfield Asset Management (TSX:BAM) would be it. The asset management leader has operations spread across the globe, spanning a range of different industries.
When it comes to diversification, you’d be hard-pressed to find a company that can match Brookfield Asset Management.
This is the perfect company to invest in for anyone that feels their portfolio is over-indexed towards a particular area of the stock market. Investing in Brookfield Asset Management can provide a portfolio with much-needed diversification.
The renewable energy sector as a whole has struggled since early 2021, making today an excellent time for long-term investors to put their cash to work. There are lots of renewable energy stocks trading far below all-time highs today, including Northland Power (TSX:NPI).
At a market cap of $8 billion, Northland Power not only boasts a market-leading position in Canada but has operations spread across the globe, too. The company offers its global customers a range of different green energy solutions to choose from, providing its shareholders with instant diversification in the sector.
Shares may be down more than 30% since 2021, but the energy stock has still outperformed the Canadian market’s returns over the past five years. And that’s not even including Northland Power’s impressive dividend, which is yielding more than 3.5% at today’s stock price.
If you’ve been thinking about investing in the growing renewable energy sector, now would be a wise time.
Last on my list is a trustworthy Canadian bank. Toronto-Dominion Bank (TSX:TD) is far from the most exciting stock on the TSX, but you’ll be glad to own it during volatile market periods.
Like all of the Big Five, TD Bank pays a top dividend. At today’s price, the bank’s annual dividend of $3.84 per share yields above 4%.
That’s not enough to keep up with inflation, but when you factor in the stock’s returns, TD Bank is no stranger to outperforming both inflation and the market’s returns.
With volatility not showing much sign of slowing down, owning shares of a dependable high-yielding stock like TD Bank can go a long way.