I’m always on the hunt for stocks that could be my new favourite. Yet I keep coming back to the companies that have done well for me over and over again, which is what I’m going to focus on today. These stocks remain my favourites for solid reasons: returns and dividends. So, let’s get into why they could be your favourites, too.
Brookfield Renewable
Granted, Brookfield Renewable Partners (TSX: BEP.UN) has been a company that has taken almost as much as it’s given. Shares of BEP stock surged when President Joe Biden was elected. However, they quickly slumped back during the downfall of 2022.
Even so, the company has proven that these fluctuations aren’t affecting its management strategy. The stock continues to make partnerships with some of the largest institutions in the world. What’s more, it’s a solid long-term hold for those like me who want diversified assets in every aspect of the renewable energy transition.
What’s more, it offers secure dividends! Brookfield stock currently holds a dividend yield of 5.7% as of writing. This was recently increased by 5% during its fourth-quarter earnings report. And shares have climbed significantly on strong earnings, up 27% in a short time! So, now could be the time for this stock to show what it’s worth.
Topicus stock
Another company I really like is Topicus (TSXV: TOI), and that’s because I don’t have the thousands to put into its manager, Constellation Software. The thing is, these two companies are basically the same.
The only difference is that Topicus stock is a recent spinoff of CSU stock, now operating in Europe. It’s taken on the same acquisition strategy that has been so successful for CSU stock. And even in a short period of time the company has surged in share price.
This comes from acquiring valuable software companies in niche markets so that Topicus stock can corner that market. It worked for CSU stock, and it’s now working for Topicus stock as well. So, with shares up 24% in the last year, it’s another of my favourite stocks I’ll keep on holding.
Royal Bank
This was my first purchase and has a place close to my heart. But that’s not because I’m being overly sentimental about it. Royal Bank of Canada (TSX: RY) has proven time and again to be worth the purchase.
RY stock continues to operate with strength even during this market volatility because it’s the largest stock on the TSX today by market cap. This comes from a stable revenue stream, with a large part coming from wealth and commercial management. This grew even further recently from its acquisition of HSBC Canada.
So, with shares up near 52-week highs, I would consider it a stock to continue drip-feeding into as I have for years now — especially considering it holds a 4.07% dividend yield. As of writing, that dividend is higher than its five-year average of 3.93%, making this a strong favourite that keeps on giving.
