The 3 Most Popular Stocks on the TSX Today: Do You Own Them?

Three popular TSX stocks today are strong buys for their thriving and resilient businesses.

| More on:
Coworkers standing near a wall

Image source: Getty Images

The Toronto Stock Exchange has dipped below 22,000 points after two trading days in June 2024. Only 7 of 11 primary sectors are up year to date, with energy as the top-performing sector with a 16.1% increase versus the broad market’s 4.9%.

However, if you have the appetite to invest today, consider taking positions in the Royal Bank of Canada (TSX:RY), Suncor Energy (TSX:SU), and Bird Construction (TSX:BDT). The first two stocks are price volume leaders, while the third is a fast-rising growth stock.

Most valuable

RBC is as popular as ever, given the stability and resiliency of Canada’s banking sector. Besides being TSX’s largest company by market capitalization, the $207.7 billion bank has been paying dividends since 1870. The 154-year dividend track record underscores its reliability as a passive income provider.

The Big Bank stock is also a screaming buy following impressive financial results in Q2 fiscal 2024. In the three months ended April 30, 2024, net income rose 7% to $4 billion compared to Q2 fiscal 2023. The Capital Markets business segment’s net income reached a record $1.3 billion during the quarter.

RBC’s net income after the first half of fiscal 2024 climbed 11% year over year to $7.5 billion. The total provisions for credit losses (PCL) increased 53% to $920 million from a year ago, mainly due to a higher PCL in Personal & Commercial Banking. At $146.95 per share, current investors enjoy an 11.9% year-to-date gain on top of the 3.9% dividend yield (50% payout ratio).

Volume leader

Suncor Energy is among the most active and heavily traded TSX stocks lately. The $66.1 billion integrated energy company is an oil bellwether. If you invest today, the share price is $51.47 (+24% year to date), while the dividend yield is an attractive 4.2%. Given the 35.3% payout ratio, the quarterly dividends should be sustainable.

In Q1 2024, Canada’s second-largest oil producer reported an all-time high oil sands production of 785,000 barrels per day (bbl/d) on a 102% upgrader utilization. However, net earnings dropped 21.5% to $1.6 billion versus Q1 2023.

Nonetheless, Suncor returned $1 billion to shareholders through share repurchases ($300 million) and dividends ($700 million). Cash flow provided by operating activities increased 168.2% year over year to $2.8 billion.

Its President and CEO, Rich Kruger, predicts that 2024 will be a very good and fun year for Suncor Energy. “Our strategies and priorities are clearer and simpler. We have very tangible and accelerated operational performance improvement plans,” he said.

High flyer

The stock’s performance reflects Bird Construction’s strong business momentum and financial results. Moreover, you can earn two ways from this high-flyer: capital gains and dividends. At $22.23 per share, the year-to-date gain is 56.2%, while the dividend yield is 2.5%.

In Q1 2024, construction revenue and net income rose 28.3% and 93.9% year over year to $688.2 million and $10 million, respectively. As of March 31, 2024, the total backlog is $3.5 billion, a record level. “The Company’s strategic focus on being a leading collaborative construction company continues to drive growth,” said Teri McKibbon, President and CEO of Bird Construction.  

Strong buys

RBC, Suncor Energy, and Bird Construction are popular TSX stocks and strong buys for their thriving businesses. All three should be among the winning TSX stocks in 2024, with or without interest rate cuts.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

The TSX is lucrative to buy these magnificent dividend stocks in bulk and be proud of this decision 10 years…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

For a bet on the aging population, consider this small-cap stock with growth potential.

Read more »

Growing plant shoots on coins
Dividend Stocks

Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

Read more »

Payday ringed on a calendar
Dividend Stocks

This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA Investors: 2 Standout Domestic Stocks With 7% Yields

These top dividend-growth stocks look oversold.

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Despite their recent declines, the long-term growth outlook of these two top dividend stocks remains strong, which could help their…

Read more »