It’s anybody’s guess as to where the Canadian stock market will be trading at the end of 2024. Predicting short-term movements is incredibly difficult. But the more you zoom out, the more clear the trends become. That’s when you can begin spotting the long-term winners on the TSX.
Investing in 2024
There’s no denying the short-term uncertainty in the stock market today. Interest rates remain far higher than pre-pandemic levels, and many are still predicting that we’re headed for a recession. As a result, it wasn’t all that surprising seeing volatility spike throughout much of 2023.
As we’ve just kicked off a new year though, there is reason for investors to be optimistic about 2024. We could very well be done with interest rate hikes and even see a decrease or two this year. That may be wishful thinking, but it’s certainly not out of the question.
With that in mind, now could be a very opportunistic time to be putting some cash into the Canadian stock market. I’d be prepared for more volatility, at least in the short term, but that’s no reason to be sitting on the sidelines today.
Here’s a list of three Canadian stocks that you can hold through thick and thin. Over the long term, I don’t see these companies going anywhere.
Stock #1: Constellation Software
Canadian investors will need to pay up to own Constellation Software (TSX:CSU), but the tech stock has proven that it’s worth every penny. The company’s track record of growth over the past two decades cannot be matched by many on the TSX.
Shares were up 50% last year, bringing the 5-year return above 250% now, compared to the S&P/TSX Composite Index’s return of 40%, excluding dividends.
Now trading at more than $3,000 a share, it may be a steep initial investment for some. But if you can afford the price to entry, this is as dependable as a market beater around.
Stock #2: Toronto-Dominion Bank
The Canadian banks don’t scream market-beating growth, but that’s not why I’m recommending this bank stock. Dependability and passive income are the two reasons that I’d suggest to any long-term Canadian investor to own a bank stock or two.
At a market cap of $150 billion, Toronto-Dominion Bank (TSX:TD) is Canada’s second-largest bank stock and as dependent as they come. The bank also has a strong presence in the U.S., which is expected to be a major growth driver in the coming years.
The bank’s dividend yields close to 5% at today’s stock price.
Stock #3: Brookfield
Last on my list is a TSX stock that does it all: growth, diversification, dependability, and even passive income.
Brookfield (TSX:BN.TO) is an asset manager that has its hands in a wide range of different industries across the globe. The diversification alone is enough of a reason to have this company on your radar.
But despite being as diversified as the business is, the stock is no stranger to outperforming the market. Shares are up a market-beating 60% over the past five years. And that’s not even including the company’s nearly 1% dividend yield, either.
If your portfolio is too concentrated in an area or two of the market, this is the perfect company to be loading up on right now.
