Despite the uncertainty in the market and economy over the last two years, the risk in markets continues to remain higher than normal, making it essential to ensure that you can confidently invest in the stocks you buy right now.
In these environments, it’s paramount to stay focused on the big picture and invest for the long haul. Long-term investing is paramount because it focuses much more on the company’s potential rather than how its share price may trade in the near term.
Therefore, in these uncertain environments, the best investments to make are high-quality companies that you have confidence can continue to grow rapidly and consistently for years to come.
So, with that in mind, here are five of the best stocks on the TSX that you can confidently invest in right now.
Utility and infrastructure stocks are some of the safest investments on the market
If you’re looking for safe and reliable stocks to buy now and hold for years to come, some of the best businesses are those that offer essential services, such as a utility stock like Emera (TSX:EMA) or an infrastructure stock like Brookfield Infrastructure Partners (TSX:BIP.UN).
Utility stocks are ideal because they are some of the most recession-resistant businesses you can buy. Whether the economy is growing rapidly or facing increasing headwinds, generally, the demand for services such as electricity and gas won’t fluctuate much.
This gives stocks like Emera a predictable revenue stream and is what has allowed Emera to increase its dividend for 16 straight years now.
However, Brookfield has a lot of similarities to Emera, including the fact that it also owns assets in the utility sector.
Brookfield is also much more diversified, owning assets such as railroads, ports, telecom towers and more, not to mention its assets are located all over the world.
Furthermore, Brookfield is well-positioned for this environment, with roughly two-thirds of its revenue indexed to inflation. And just like Emera, Brookfield aims to increase its distribution each year, with the company’s stated goal of growing that distribution by 5% to 9% annually, making these two stocks some of the best to buy for consistently growing passive income.
Two of the top growth stocks in Canada
In addition to businesses with highly defensive operations, you may also want to consider some of the best and most consistent growth stocks on the market with long track records of impressive execution, such as Thomson Reuters (TSX:TRI) and Alimentation Couche-Tard (TSX:ATD).
Both Thomson Reuters and Couche-Tard have grown rapidly and consistently over the decade. In fact, Thomson Reuters, the massive $100 billion stock, is up over 685% in the last decade, a compounded annual growth rate (CAGR) of 22.9%. Meanwhile, Couche-Tard, the owner of convenience stores and gas stations, is up over 450%, a CAGR of roughly 18.7%.
Thomson Reuters is an ideal investment because it’s a massive company offering diversified services such as legal, tax, accounting and more in countries across the globe.
Plus, with roughly 80% of its sales being recurring revenue from subscription-based services and long-term contracts, the company has a stable and predictable income stream, making it one of the best stocks to confidently invest in right now.
Couche-Tard, however, has also proven to be highly defensive, and its growth-by-acquisition strategy, as well as its focus in recent years on driving organic growth, has made it one of the best long-term investments Canadian investors can buy.
Telecom stocks are some of the best to buy for the long-term
Finally, telecom companies such as Telus (TSX:T) can also be some of the best stocks to invest in for the long haul, thanks to the consistently growing demand for communication services and the fact that these companies own long-life assets, making them cash cows.
Plus, in addition to Telus being a cash cow and having a 19-year dividend-growth streak, today, the stock is trading ultra-cheap, sitting nearly 20% off its 52-week high and offering a sky-high dividend yield of more than 6.9%.
For comparison, its average forward yield over the last five years has been just 5.2%. So, while it’s undervalued and offers such a compelling dividend yield, it’s certainly one of the best stocks to invest in right now.
