There’s no denying that it’s been a bumpy ride for Canadian investors over the past 12 months. In the past year alone, the S&P/TSX Composite Index has experienced four 5% drops — two of which ended up being more than 10%. Still, the index is just about flat over the past year.
Despite the recent volatility, the Canadian stock market has been showing much-anticipated signs of strength as of late. The market as a whole continues to trade below all-time highs that were set in early 2022. But at this rate, we may see a return to those levels before we know it.
Now is an opportunistic time to invest in individual TSX stocks
The S&P/TSX Composite Index is up about 5% on the year, but there are plenty of individual stocks up far more than that already.
I’ve put together a list of three top stocks that long-term investors would be wise to consider buying today. The basket of companies can provide investors with a mix of growth, dependability, and passive income.
Long-term investors looking for growth may not want to be on the sidelines right now. Growth stocks, particularly in the tech sector, took a beating in 2022. But towards the end of the year, momentum started gathering and that’s continued right into 2023.
Shopify (TSX:SHOP) remains at a price far below all-time highs, but the tech stock is up more than 50% in 2023 already. That puts shares up nearly 350% over the past five years. Not many other TSX stocks can compete with a return like that.
Volatility very well could continue in the short term, but this is not a growth stock I’d want to bet against over the long term. I’d act fast if you’re looking to take advantage of this bargain price.
Sticking with the tech sector, I’ve included a long-term Canadian winner that has largely outperformed many of its peers over the last year.
Constellation Software (TSX:CSU) is a $50 billion tech company that has been driving market-crushing returns for its shareholders for years now. Shares are up 40% over the past 12 months and more than 150% over the past five years.
Over the long term, if I was searching for multi-bagger returns, I’d likely pick Shopify over Constellation Software. But for anyone looking for dependable market-beating returns, Constellation Software would be one of your best bets on the TSX.
Bank of Nova Scotia
To round out this basket, I’ve included a defensive, dividend-paying bank.
At today’s stock price, Bank of Nova Scotia (TSX:BNS) ranks as the highest-yielding of the Canadian banks at just over 6%.
Growth rates may not be market-beating on a yearly basis, but that’s not why I’d have this bank on my watch list. It’s the combination of a top dividend and defensiveness that make Bank of Nova Scotia appealing to me.
The bank would likely be far from the most exciting stock in many investors’ portfolios. But when it comes to investing, there’s absolutely nothing wrong with being boring.