With the stock market seemingly headed to new highs on a weekly basis, investors in search of the best stocks to buy to capture this upside certainly have their work cut out. After all, it’s just a handful of growth stocks driving most of the gains on the S&P 500. And while the TSX does appear to have better breadth, it’s also true that the TSX has underperformed relative to its U.S. counterparts of late, largely due to a lack of mega-cap tech stocks driving this growth.
That said, there are plenty of other top TSX stocks to consider buying right now. Here are three of my top picks in this environment.
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Restaurant Brands
One of the leading global purveyors of fast food, Restaurant Brands (TSX: QSR) is among the most stable and defensive options in this market. The company stands to benefit from trade down in the dining sector as household budgets continue to be stretched.
The company continues to see strong growth, particularly in its international segment, driving strong top- and bottom-line numbers each quarter. These cash flows support a juicy 3.3% dividend yield, which continues to increase over time.
Fortis
Speaking of dividends, Fortis (TSX: FTS) remains one of my top TSX picks in this realm. The company’s 4.4% dividend yield is more attractive than that of Restaurant Brands, and the company has a very long streak (more than five decades long, in fact) of hiking its distribution.
As a top utilities player in North America, this makes sense. Fortis is able to raise prices alongside regulated mandates and deliver excess cash flow back to shareholders in the form of higher dividends over time.
So long as population growth remains strong and electrification trends accelerate (we’re going to need a lot more electricity), there’s a lot to like about what Fortis has to offer.
Alimentation Couche-Tard
Last but not least, we have Alimentation Couche-Tard (TSX: ATD). A more growth-focused pick, Couche-Tard also provides a small yield of a little less than 1%. This gas station and convenience store operator has seen strong growth over time via consolidating a fragmented industry. Notably, this model is one that’s scalable and is proving to be something investors like to see.
Indeed, Couche-Tard is among the best-performing Canadian stocks for a reason. The company’s total service and merchandise revenue grew 1.6% year over year and could continue to grow more as the company acquires its way to growth in new markets.
For those seeking a balanced portfolio of top stocks to buy, these are three of the best options on the TSX in my view.
