The Canadian stock market has had no shortage of volatility in 2023. The S&P/TSX Composite Index may be flat on the year but there have now been three separate 5% surges in 2023. Each time, though, the market has quickly returned those gains.
While years like this may be frustrating at times for investors, it’s not a reason to be on the sidelines. The TSX remains ripe with opportunity. There are plenty of top-quality stocks trading at bargain prices right now.
I’ve reviewed three Canadian stocks that you don’t need to think twice about loading up on today. Regardless of how the market performs in the short term, these are three solid long-term holds.
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Bank of Montreal
When it comes to dependability, the Canadian banks are tough to beat. With long track records of rewarding shareholders and top dividend yields today, there are a lot of good reasons to own at least one of the Big Five.
At today’s stock price, Bank of Montreal’s (TSX:BMO) dividend yields above 5%. In addition, the $80 billion bank has been paying a dividend to its shareholders for close to 200 consecutive years.
If you’re looking for a reliable stream of passive income, BMO is the dividend stock for you. And with shares down close to 25% from all-time highs, now could be a great time to start a long-term position.
Brookfield Infrastructure Partners
Speaking of dependable companies to own, utility stocks should certainly also be top of mind. They are far from the most exciting companies to own, but you can count on them, regardless of how the broader market is performing.
Brookfield Infrastructure Partners (TSX:BIP.UN) is not only a Canadian but a Global leader in the utility space. The company boasts a wide-ranging product offering, which gives its shareholders broad industry exposure.
Similar to the Canadian banks, utility stocks are no strangers to impressive dividend yields. Brookfield Infrastructure Partners’s dividend yields just shy of 5% at the stock’s current price.
Growth investors looking to dial back the risk in their portfolios may want to consider investing in a trustworthy utility stock like this one.
Constellation Software
The last pick on my list is a far different company than the first two I reviewed.
Constellation Software (TSX:CSU) is a high-growth tech stock that has been largely outperforming the Canadian stock market’s returns for the past two decades. Shares are also valued at a premium price in comparison to BMO and Brookfield Infrastructure Partners and are trading right below all-time highs today.
With shares already up 30% in 2023, some investors may prefer to wait for a pullback before starting a position in Constellation Software. While shares are likely to cool off at some point, this is not a stock that goes on sale often.
Investors looking to earn market-crushing returns will need to pay up — not only in price but in terms of risk level, too. Constellation Software may not go on sale often, but shareholders should be prepared for volatility, which is why it pays to have a long-term time horizon.
If you’re looking to add some long-term growth to your portfolio, you cannot go wrong with this top tech company.
