My 5 Favourite Stocks to Buy Right Now

Have some extra cash to spare? Here are five Canadian stocks to add to your watch list today.

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

The Canadian stock market is gradually making its way back to all-time highs. The S&P/TSX Composite Index is up more than 10% over the past year. The index is now trading less than 5% below all-time highs, which were last set close to two years ago.

With stocks on the rise, now could be an opportunistic time to put some money to work. 

I’ve put together a well-rounded basket of five companies that can do it for all investors. Together, the five Canadian stocks can provide a portfolio with a balanced mix of growth potential, passive income, and diversification.

Lightspeed Commerce

The tech sector is a great place to be shopping for value right now. Volatility and risk may be high, but the growth potential could be, too.

Shares of Lightspeed Commerce (TSX:LSPD) are down close to 90% from all-time highs. The stock is now trading below the price that it was when it joined the TSX in 2019.

Despite the stock’s recent struggles, the business continues growing, and the commerce space isn’t getting any smaller. Lightspeed’s global customers have a wide range of cloud-based commerce solutions to choose from, which is one reason why revenue continues to grow at double-digit rates each quarter.

Long-term investors shouldn’t sleep on this value play.

Descartes Systems

Growth investors who are looking for more stability should consider Descartes Systems (TSX:DSG). 

The $10 billion company is up 15% year to date and has set new all-time highs several times this year already. Shares are also up a market-crushing 170% over the past five years.

If you’re waiting for a pullback to load up on shares of Descartes Systems, you may be waiting a while. This is a top-quality tech stock that rarely goes on sale.

goeasy

To round out the growth potential of this basket is a stock that might not be trading at a discount for much longer.

Shares of goeasy (TSX:GSY) are up 50% over the past year and are now down just 25% from all-time highs. 

The growth stock may be trading at a discount, but it’s still up close to 300% over the past five years. In comparison, the broader Canadian stock market has returned less than 50%, excluding dividends. 

Sun Life

Growth investors would be wise to balance out their riskier holdings with a few dependable companies, like Sun Life (TSX:SLF).

The insurance space is certainly not an exciting one, but that’s also what makes Sun Life a great buy. The dependable insurance provider can potentially lower volatility in an investment portfolio.

Not only can Sun Life be a defensive play for investors, but it can also be a passive-income generator.

At today’s stock price, the company’s dividend is yielding above 4%.

Northland Power

Last on my list is a dividend-paying company that’s also no stranger to outperforming the market.

With shares down more than 50% below all-time highs, Northland Power’s (TSX:NPI) dividend yield has shot up above 5%.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Enbridge made the list!

The renewable energy sector as a whole has been on a decline since early 2021. In the short term, we may see green energy stocks continue to slide. But over the long term, there could be some serious value here.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nicholas Dobroruka has positions in Lightspeed Commerce. The Motley Fool recommends Descartes Systems Group and Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Dividend Stocks

hand using ATM
Dividend Stocks

Should Bank of Nova Scotia or Enbridge Stock Be on Your Buy List Today?

These TSX dividend stocks trade way below their 2022 highs. Is one now undervalued?

Read more »

A meter measures energy use.
Dividend Stocks

Here’s Why Canadian Utilities Is a No-Brainer Dividend Stock

Canadian Utilities stock is down 23% in the last year. Even if it wasn’t down, it is a dividend stock…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Got $5,000? Buy and Hold These 3 Value Stocks for Years

These essential and valuable value stocks are the perfect addition to any portfolio, especially if you have $5,000 you want…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in April

High yield stocks like BCE (TSX:BCE) can add a lot of income to your portfolio.

Read more »

grow money, wealth build
Dividend Stocks

1 Growth Stock Down 24% to Buy Right Now

With this impressive growth stock trading more than 20% off its high, it's the perfect stock to buy right now…

Read more »

Dividend Stocks

What Should Investors Watch in Aecon Stock’s Earnings Report?

Aecon (TSX:ARE) stock has earnings coming out this week, and after disappointing fourth-quarter results, this is what investors should watch.

Read more »

Freight Train
Dividend Stocks

CNR Stock: Can the Top Stock Keep it Up?

CNR (TSX:CNR) stock has had a pretty crazy last few years, but after a strong fourth quarter, can the top…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Stocks Ready for Dividend Hikes in 2024

These top TSX dividend stocks should boost their distributions this year.

Read more »