3 Top TSX Stocks I’m Buying in June

Do you want more returns and fewer losses in June? These are the three top stocks I’m considering on the back of strong earnings.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 4, 2024 9:15 pm EDT

Earnings season is winding down, and it’s time to look back after the dust has settled and see which stocks came out on top. The ones that have been climbing higher since earnings while also providing a strong long-term outlook. With that in mind, these are the three top TSX stocks I’ll be considering buying this month.

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Brookfield Renewable

Of the top performers on the TSX today, Brookfield Renewable Partners (TSX: BEP.UN) was certainly a strong contender. The renewable energy assets manager reported record first-quarter results. But that’s not the only reason I’ll consider upping my stake.

The company has a partnership underway with Microsoft, which looks like a strong long-term provider of significant returns. Brookfield will be providing 10,500 gigawatts of energy to the tech company. This will be to help it expand its artificial intelligence (AI) use, powering it with renewable means.

Yet even as shares have surged by about 40% since earnings, it’s still a steal trading at half its all-time highs. And with a dividend yield of 5.07%, it’s certainly one I’ll keep drip-feeding into.

Dollarama

Another company that just won’t stop climbing is Dollarama (TSX: DOL). However, this company is actually nearing its next earnings report. And so once that’s in the books, it could be a good time to add a stake as well.

Dollarama stock certainly is a strong investment during times of trouble when inflation and interest rates cause consumers to look for low-cost options. However, even during the good times, Dollarama stock does well. This likely helped the company when it decided to increase its dividend by a whopping 29.9% during its most recent quarter. I know it certainly doesn’t hurt!

With that in mind, and as shares continue to climb higher for the company, I’d say right now is a strong tie to invest — especially considering while there have been improvements in the market, we’re not out of the woods yet. Costs are still high, and Dollarama stock is still in high demand. So, it’s another company I’ll be considering this month.

Royal Bank

Finally, we Canadians love our Big Six banks. But while many are either struggling or just starting to climb back upwards, Royal Bank of Canada (TSX: RY) is passing all-time highs. This comes from a variety of reasons.

Royal Bank stock has a long history of stability thanks to its wealth and commercial management and capital markets sectors. These are highly lucrative, providing the company with stable long-term income. However, there was another major move that had investors quite interested.

This came from its purchase of HSBC Canada. The purchase added a slew of new clients, including high-income newcomers to Canada. So, not only is the bank doing well, it has even more growth in the near and distant future. And with a dividend yield of 3.84%, it continues to look like one of the best options on the market today.