Keeping a level head during volatile market periods is easier said than done. One way to remain calm in a volatile market, at least for long-term investors, is to remind yourself of your time horizon.
In addition, as long as you’ve got the time to wait out the market’s volatility, there’s no need to be on the sidelines. A volatile market can be an excellent time for patient investors to put some money to work. There is no shortage of high-quality stocks on the TSX trading at opportunistic discounts right now.
Short-term investors, however, have their work cut out for them today. It’s hard enough trying to predict short-term movements in the stock market in the calmest of conditions. Good luck trying to predict where the S&P/TSX Composite Index will be trading in one month’s time.
With that in mind, I’ve reviewed three top Canadian stocks investors can feel good about buying, regardless of the market’s condition. These three companies are all proven winners, and none are showing any signs of slowing down.
Stock #1: Descartes Systems
When it comes to high-flying tech stocks, Descartes Systems (TSX: DSG) can easily fly under the radar.
The $10 billion company is in the logistics and supply chain space, which can partially explain its low level of fanfare amongst Canadian investors. But when it comes to market-beating returns, the company can compete with the best of them on the TSX.
Descartes Systems has returned 150% over the past five years. In comparison, the broader Canadian stock market has returned less than 40%, excluding dividends.
With shares trading just below all-time highs, investors aren’t exactly able to get a bargain today. But what investors will get is a high-quality stock that’s a proven market-beater that is only continuing to grow.
Stock #2: Toronto-Dominion Bank
The Canadian banks are far from the most exciting stocks on the TSX. What they can be, though, are dependable passive-income generators. And during times of volatility, a dependable stream of passive income can go a long way.
When it comes to dividends, you can’t go wrong with any of the Big Five. What separates Toronto-Dominion Bank (TSX: TD) from its peers is the bank’s growth potential in the United States. TD Bank has already established a strong market position south of the border, and there is still plenty of market share left to capture.
At today’s stock price, the bank’s dividend is yielding 5%.
Stock #3: Brookfield
Brookfield (TSX: BN) is a company that can do it all for investors. The stock is no stranger to outperforming the market’s returns, and it also pays a dividend, albeit a small one. It’s the diversification, though, that puts Brookfield in a league of its own.
The $85 billion company is a global asset manager with operations spanning a wide range of different industries. Owning shares of the stock provides instant diversification to an investment portfolio.
Growth investors looking to add a little extra diversification to their portfolios should have this stock high up on their watch lists.
