The S&P/TSX Composite Index is trading just about flat on the year. In comparison to last year, Canadian investors shouldn’t be all that upset with the lack of returns in 2023. However, when compared to the U.S. stock market’s performance, Canadian investors do have a case to make for wanting more.
The U.S.-based S&P 500 is up close to 15% on the year — well on its way to returning to all-time highs that were last set in 2021.
As a Canadian investor myself, 2023 has been a much-needed reminder of the importance of diversification — internationally, that is. Additionally, another optimistic approach to the Canadian market’s underwhelming returns this year is the fact that there are still loads of bargains to take advantage of.
The Canadian stock market may be trailing the U.S. this year but there are also plenty of top TSX stocks that have yet to surge back from lows set in 2022. The TSX continues to be loaded with high-quality stocks trading at opportunistic discounts.
I’ve put together a basket of three top picks that are trading significantly below all-time highs today. Whether you’re looking for market-beating growth potential, passive income, or simply a can’t-miss deal, this basket has you covered.
goeasy
Anyone that’s looking to add some growth to their portfolio would be wise to have goeasy (TSX:GSY) on their radar.
Even with the growth stock trading 50% below all-time highs from 2021, not many TSX stocks have outperformed goeasy over the past five years. Shares are up a market-crushing 160% since June 2018.
As a consumer-facing financial services provider, it’s not surprising to see the stock suffer in a high-interest rate environment.
In the short term, we may see shares continue to struggle, at least as long as interest rates remain as high as they are today. But over the long term, goeasy has been as reliable of a market beater as you’ll find on the TSX.
Bank of Nova Scotia
There’s never a bad time to think about adding a little extra passive income to an investment portfolio. And there aren’t many better ways to do that than investing in the Canadian banks.
At today’s stock price, Bank of Nova Scotia’s (TSX:BNS) 6.5% dividend yield ranks it as the highest among the Big Five. In addition, the $75 billion bank has been paying out dividends to its shareholders for close to 200 consecutive years.
If you’re looking for a top dividend at a reasonable price, Bank of Nova Scotia is the dividend stock for you.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) offers investors the best of both worlds when it comes to passive income and growth. Shares are also trading at discounted prices right now.
Even with the renewable energy stock trading more than 30% below all-time highs, shares have still nearly doubled over the past five years. And that’s not even including the company’s current nearly 5% dividend yield.
If you’re a long-term bull on the renewable energy space, this is a company you should be investing in today.
