4 Canadian Stocks That Are Beating the Market

Volatility remains high in May 2023, but four Canadian stocks continue to soar and post market-beating returns.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

Can investors beat the market during volatile or uncertain times, like today? The answer is yes, as evidenced by the performance of four Canadian stocks. They belong to various sectors, and all are winning investments thus far in 2023 for their impressive, market-beating returns.

A Dividend Aristocrat

CCL Industries (TSX:CCL.B), the pioneer in specialty packaging, is a Dividend Aristocrat owing to 21 consecutive years of dividend increases. At $68.01 per share, investors are up 18.08% and partake in the 1.56% dividend. While the yield is modest, the quarterly payouts are rock steady.

The $11.4 billion company is a global leader in labels, specialty packaging, and security applications. It has 165 production facilities around the world distributed in four divisions. In the first quarter (Q1) of 2023, total sales and net earnings rose 8.5% and 10.8% year over year to $1.65 billion and $166.4 million. CCL president and chief executive officer (CEO) Geoffrey T. Martin said the company ended the quarter with a strong balance sheet and robust liquidity.

Clean-air world

Cameco (TSX:CCO) wants to meet the ever-increasing demand for clean, baseload electricity by providing nuclear fuel products to energize a clean-air world. The $16.6 billion company is a global provider of uranium fuel. You can earn two ways from this energy stock, capital gains and dividends. At $37.55 per share (+22.35 year to date), the dividend offer is 0.28%.

Tim Gitzel, Cameco’s president and CEO, said, “The world is recognizing the benefits of clean-air nuclear energy and the critical tool it can be in the fight against climate change and in providing energy security.” He added that there’s no better time than today to be a pure-play investment in the growing demand for nuclear energy.

Steady senior gold producer

Metals and mining (basic materials) is currently the third-best-performing sector in 2023. Kinross Gold (TSX:K) is one of the steadiest constituents, with its 31.14% year-to-date gain. At $7.18 per share, the dividend yield is a decent 2.23%. The $9.11 billion senior gold producer owns and operates a diverse portfolio of mines in five countries.

In Q1 2023, net earnings from continuing operations increased 10.9% to US$90.2 million versus Q1 2022. Notably, free cash flow (FCF) reached US$37.8 million compared to -US$2.8 million a year ago. Because of the 23% increase in year-over-year production to 466,022 gold equivalent ounces (Au eq. oz.), management expects to hit its annual production target (2.1 million Au eq. oz.) in 2023.

Soaring healthcare stock

Dialogue Health Technologies (TSX:CARE) flies under the radar, but the obscure healthcare stock is soaring this year. At only $3.62 per share, the year-to-date gain is a fantastic 56.03%. Market analysts forecast a return potential between 39.4% (average) and 72.1% (high) in 12 months.

This $252.4 million company provides affordable, on-demand access to quality care through its digital healthcare and wellness platform.

In Q1 2023, management reported a smaller loss of $2.7 million compared to $6.7 million in Q1 2022. Its chief financial officer Navaid Mansuri said Dialogue aims to reach adjusted earnings before interest, taxes, depreciation, and amortization breakeven by year-end. He added that the company needs limited capital to reach the cash flow-generation stage.

Excellent for growth investors

The four Canadian stocks in focus are excellent options for growth investors. If they outperform during a bear market, they could soar even higher in the coming bull market.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends CCL Industries. The Motley Fool has a disclosure policy.

More on Investing

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on it

Stocks like First National Financial (TSX:FN) pay you monthly. You can also earn monthly dividends through portfolio diversification.

Read more »

woman analyze data
Investing

Why I’d Buy Nvidia Stock Even at Today’s Prices

Nvidia’s dominant position in the AI space and the ongoing demand for its GPUs suggest that the stock’s upward trajectory…

Read more »

stock analysis
Dividend Stocks

1 Dividend Superstar I’d Buy Over TD Bank Stock

TD (TSX:TD) stock may look undervalued, but there are reasons for the price drop. Meanwhile, this dividend superstar has more…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, July 17

Trading just below the key psychological level of 23,000, the TSX Composite has been posting fresh record highs for four…

Read more »

A steel grain silo storage tank with solar panel in a yellow canola field in bloom in Alberta, Canada.
Dividend Stocks

Down by 26.77%: Now Might Be the Perfect Time to Buy Nutrien Stock

This TSX stock has seen share prices fall by over 26% from its 52-week highs, but it might be the…

Read more »

Woman has an idea
Dividend Stocks

2 No-Brainer Stocks to Buy Now With $7,000

Two relatively cheap cash cows are no-brainer buys for investors with $7,000 to invest.

Read more »

dividends grow over time
Dividend Stocks

Buy This High-Yield Dividend Stock in July 2024

Buy this high-yielding dividend stock to lock in inflated yield into your portfolio to generate solid passive income for years.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Where Will Dollarama Stock Be in 3 Years?

Dollarama stock has done incredibly well during economic uncertainty, but what about when the markets recover in the next three…

Read more »