The Canadian stock market has had a hot start to the year. The S&P/TSX Composite Index is up more than 5% in 2024 already. The current bull run started back in 2023, though.
The previously mentioned index is nearing an incredible return of 20% since last October, putting it right below all-time highs that were last set in early 2022.
With the market on the rise, now could be an opportunistic time to put some money to work. Even with the recent run-up, there’s still no shortage of discounted stocks on the TSX to choose from today.
I’ve put together a basket of Canadian stocks that all offer something a little different to investors. The three businesses are also all very different from one another, making it a great trio of Canadian stocks to be loading up on right now.
Stock #1: Constellation Software
Not all investors may be interested in a stock that’s trading close to $4,000 a share. While that may be a steep price for just one share, investors need to keep in mind that it’s how much money you have invested that’s important, not the number of shares. Whether you own 100 shares at $40 each or one share at $4,000, you’re going to end up in the same place.
Constellation Software (TSX:CSU) is in a league of its own when it comes to market-beating returns. The tech stock has a track record spanning decades of crushing the market.
Even as the business continues to mature and is now valued at a market cap of $80 billion, the stock isn’t anywhere near close to underperforming the market. Constellation Software is up 50% over the past year and more than 200% over the past five years.
Stock #2: Royal Bank of Canada
As exciting as it is to invest in growth stocks, building a portfolio of exclusively high-flying tech companies might not be the wisest idea. If you plan on owning high-growth companies, adding in a few dependable dividend payers could go a long way.
When it comes to dividend stocks, the Canadian banks are hard to beat. The Big Five own some of the longest payout streaks and highest yields on the TSX.
Royal Bank of Canada (TSX:RY) ranks as the largest of the Canadian banks. It doesn’t own the longest payout streak or the highest yield, but it has been amongst the most dependable stocks on the TSX for a long time.
Stock #3: Brookfield Renewable Partners
The last pick on my list is a beaten-down renewable energy stock. The entire sector has been on the decline since early 2021, which makes today an opportunistic time to load up—as long as you’re willing to be patient.
It may take time for Brookfield Renewable Partners (TSX:BEP.UN) to return to all-time highs. The stock is down more than 50% since it last peaked. However, not even including its dividend, which is currently yielding above a whopping 6%, the energy stock has still outperformed the market’s returns over the past five years.
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This is a proven energy stock that owns not only a strong Canadian market position but a global one, too.
Anyone bullish on the long-term rise in renewable energy consumption should have a company like Brookfield Renewable Partners on their watch list today.
