Investing in Canadian stocks may seem uncertain right now. Yet there has never been a point in history where investing in stocks was risk-free or without uncertainty. The key to building wealth is to start early, save regularly, and invest often.
By diversifying your investments and buying stock positions incrementally, you can help offset market and individual stock risk. If I were just starting out, here are five Canadian stocks to consider buying in April.
Two Canadian stocks for growing dividends
If you want to collect some passive income along the way, two quality dividend stocks are TELUS (TSX: T) and Brookfield Infrastructure Partners (TSX: BIP.UN). TELUS stock earns 4.95% dividend yield and Brookfield earns a 4.33% distribution yield. While these do not have the highest dividend yields, they are backed by more than a decade of high-single-digit dividend growth.
TELUS earns steady, predictable cash flows from its largely contracted base of cellular and internet services. While known as a telecom stock, TELUS has invested heavily to be a Canadian and global provider of diversified digital services.
It has a great track record of delivering above-average financial and operational results versus its peers. For that, this is top stock for safety, growth, and income.
Brookfield is leading operator of essential infrastructure assets around the globe. Most of its operations are contracted or regulated like a utility, but it utilizes its counter-cyclical merger-and-acquisition (M&A) strategy to deliver above-average growth.
Brookfield has great assets, a solid balance sheet, and a smart management team. It’s a great low-risk dividend stock with above-average growth.
A cyclical value stock
If you are looking for a more cyclical value stock, Tourmaline Oil (TSX: TOU) could be one for your radar. Energy stocks are cheap, especially compared to the market. As a result, I think it is worth having some exposure. These can be volatile stocks, but they can provide a counter-cyclical hedge to the broader Canadian stock market.
Tourmaline is Canada’s largest natural gas producer and its fourth-largest oil producer. The company has excellent assets that have a low cost of production and decades of reserves.
This Canadian stock is a cash cow that has been generating massive special dividends. If you want oil and gas exposure, this is one of the best-managed businesses in Canada.
An up-and-coming Canadian growth stock
If you are looking for some growth for your portfolio, Artizia (TSX: ATZ) might be a Canadian stock in the early innings of its growth story. Aritiza has a very good reputation for its higher-end women’s clothing boutiques in Canada. However, it has a very exciting opportunity to keep expanding in the U.S., and eventually internationally.
This Canadian stock has a strong balance sheet, very well-located retail locations, a highly invested executive team, and great products. This company always under promises and over delivers, which makes it a great long-term growth bet.
A stock to buy and hold for the long term
Speaking about growth, Alimentation Couche-Tard (TSX: ATD) has a great long-term track record. This stock is up 656% over the past 10 years. This stock operates in a very boring industry (convenience stores and gas stations). However, it applies great M&A and smart organic investments to earn very good returns.
Like Aritiza, it has a highly invested executive team who are strongly aligned with investors. This is just a really well-run business that any new investor can buy, hold, and tuck away for years.
