The uncertain macroeconomic environment could continue to take a toll on the financial performance of enterprises. Nonetheless, some Canadian corporations continue to perform well, regardless of the economic situation, making them attractive investments in all market conditions.
Thus, investors planning to put their surplus cash into stocks could consider investing in these fundamentally strong companies to generate long-term wealth. So, if you can spare $500, consider investing in these five Canadian stocks now.
Dollarama
With its high growth and defensive business model, Dollarama (TSX:DOL) is a solid investment in all market conditions. The company sells a wide range of products at low-fixed-price points, which drives its traffic and financial performance. Thanks to its resilient business and strong growth, Dollarama stock has consistently outperformed the TSX and delivered stellar gains over the past decade.
Looking ahead, its value pricing and extensive network of stores in the domestic market will drive its revenue and earnings per share (EPS) at a double-digit rate. Moreover, its growing global footprint will likely support its financials. Overall, Dollarama stock is well positioned to deliver market-beating returns regardless of volatility.
Telus
Telus (TSX:T) is another excellent stock for long-term investors. As its services are deemed essential, Telus is well positioned to navigate the macro headwinds easily. Moreover, its ability to grow its customer base, investment in growth, and strong earnings base support its stock price and make it a top Canadian dividend stock.
Its growing consumer base, lower churn rate, investments in network infrastructure, and expansion of 5G services provide a solid foundation for growth. Further, Telus could continue to return substantial amounts of cash to its shareholders through higher dividend payouts and share repurchases.
Canadian National Railway
Similar to Telus, the services of the railroad company Canadian National Railway (TSX:CNR) are also deemed essential for the growth of the economy. Thanks to its resilient business and diversified customer base, Canadian National Railway generates solid earnings and boosts its shareholders’ returns through increased dividend payments.
The company has raised its dividend for 27 consecutive years. Meanwhile, its focus on fleet expansion, strategic partnerships, and investments in infrastructure bode well for future growth. Further, freight rate increases and contractual arrangements are positives.
Aritzia
Aritzia (TSX:ATZ) is a fast-growing lifestyle apparel brand that consistently delivers stellar revenue and earnings growth. Its top and bottom line has grown at a double-digit rate over the past several years, reflecting strong demand, boutique expansion, and strength in its e-commerce channel. Further, the momentum in its business has sustained, despite the pressure on consumer spending.
Aritzia is confident about growing its revenue at an annualized growth rate of 15-17%. Meanwhile, its EPS growth is forecasted to exceed its top-line growth through 2027. New boutique openings, expansion in the U.S., brand awareness, and solid e-commerce business are likely to support Aritzia stock.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) is a high-quality defensive bet offering strong growth. The retailer’s low-risk business, its coast-to-coast presence in Canada, growing share in several European markets bode well for growth. Furthermore, its strong balance sheet supports accretive acquisitions, which will accelerate its growth rate.
Overall, its value pricing strategy, cost optimization, strong balance sheet, and low-cost debt provide a solid platform for growth. Moreover, its expansion in the U.S. and strategic acquisitions will likely support its financials and stock price.
