As we kick off 2024, investors of all stripes may be looking to reposition their portfolios. Whether you’re a dividend investor or focused on growth, there’s certainly plenty to consider as we traverse a changing macro landscape.
For those seeking a solid combination of dividends and growth, here are three Canadian stocks I think are worth considering. Each have their own unique catalysts for the coming year, and remain strong options for core portfolio holdings long term.
Let’s dive in!
TD Bank
Along with its subsidiaries, Toronto Dominion Bank (TSX:TD) provides numerous financial products and services in the USA, Canada, and other countries. Under this company, a person can avail of services like savings, chequing, financial investments, and other investment products. TD Bank also offers services like loan facilities and credit and debit card applications.
This bank generated strong revenue for the fiscal year 2023, which helped forify its overall financial performance. The company’s adjusted net income grew to US$15.1 billion for 2023 compared to 2022 net income of USD$15.4 billion.
Analysts state that an increase in credit losses is one of the major reasons behind this difference. Furthermore, the company increased its quarterly dividend yield for TD shareholders by 6.3%. TD stock offers an annualized yield of 4.7%.
On this note, the price of TD stock has increased in the past few months. Analysts consider that the price might fall in the forthcoming days to rise again in the long run. Therefore, interested investors may want to keep TD in their portfolio for long-term capital growth.
Restaurant Brands
Restaurant Brands International (TSX:QSR) is a global restaurant chain with major operations in Canada and the USA. This company serves its customers with four brands popular internationally. These are Popeyes Louisiana Kitchen, Firehouse Subs, Burger King, and Tim Horton’s.
Numerous analysts suggest Restaurant Brands remains a must-have investment for those looking forward to regular and long-term capital growth. QSR shares are currently trading near a record high, for this reason.
Since its IPO launch, this company has offered solid dividend growth, as well as capital appreciation. As the company continues to grow its earnings, investors can rely on growing distributions over time. This lends itself to a strong total return thesis for long-term investors, and is the main reason this stock is my top holding right now.
These factors act as a driving force allowing investors to believe in the potential of higher returns from QSR stock over the long term.
Manulife
Manulife Financial Corporation (TSX:MFC) along with its subsidiaries offers financial products and services mainly in Canada, the USA, and certain Asian countries.
According to its recent reports, Manulife stock has seen 22.3% year-to-date upside. Furthermore, the average volume of shares that were traded in the past three months was 3.2 million. The company’s earnings also witnessed 6.2% growth for the past five years. Additionally, management targets earnings per share growth ranging from 10% to 12% to mid-2024.
Owing to this insurer’s accelerating growth, Manulife ranks among the three leading life insurers in the domestic Canadian market.
