My 5 Favourite Stocks to Buy Right Now

Choosing the right stocks at the right time can transform your portfolio and impact everything from the pace of its growth to the size of the nest egg it’s expected to yield.

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

For every investor, the list of favourite stocks might expand or contract based on market conditions. Some stocks might be on that list that they would buy regardless of the market conditions, but others might be seasonal favourites. For July 2024, my list of favourites includes the following five stocks.

A fuel cell company

Ballard Power Systems (TSX:BLDP) is a prominent name in the fuel cell industry and offers a good alternative to classic ESG (environmental, social, and governance) investing options like renewable energy and electric vehicles (EVs). Its technology relies on hydrogen as a fuel and converts it into electricity for use, essentially eliminating the need for batteries.

The company has managed to remain financially healthy without incurring significant debt. So, when the market conditions are right (like hydrogen prices going down), this relatively unencumbered stock might shoot to new heights.

A real estate essential service company

FirstService (TSX:FSV) is one of North America’s largest real estate essential services companies and the biggest manager of residential communities, overseeing millions of housing units. It’s listed in both Canada and the U.S., and the bulk of its business is across the border. It has an impressive footprint and a diversified enough business to make it resilient against various economic weaknesses.

FirstService is a consistent and reliable dividend payer that has grown its payouts consistently since its inception, earning it the title of an Aristocrat. While the payout ratio and dividend growth are reasons enough to buy this stock for dividends, the yield is barely passable at 0.66%. One factor influencing the yield is its growth, which, even though it has slowed down quite a bit, may experience a resurgence.

An alternative financial company

While most Canadians lean towards more conservative financial stocks for dividends (and for growth) — i.e., banks — alternative financial companies like goeasy (TSX:GSY) might prove better or at least comparable picks on both fronts. It’s an alternative lender focusing on people with weak credit.

From a dividend perspective, goeasy is an established Aristocrat with a compelling dividend-growth record and a modest yield of 2.6%. But it’s also a fairly valued growth stock that grew 230% in the last five years. Right now, it’s modestly discounted, partly because of an upcoming change in leadership (with its chief executive officer retiring).

A mortgage company

If you are looking for a more substantial income producer instead of low-yield Aristocrats, MCAN Mortgage (TSX:MKP) is a stock worth considering. This small mortgage company is offering a mouthwatering yield of about 9.6% right now when it’s trading at a less than 10% discount from its five-year peak.

Valuation is another point in MCAN’s favour, as it’s trading at a price-to-earnings ratio of just 7.3. The growth potential is modest at best, but the chances of losing your money are quite low, making it a reasonably healthy pick.

A telecom company

Telus (TSX:T) is one of the country’s three telecom giants and one of the best 5G stocks. It offers a healthy combination of dividend and growth potential, especially at its current discounted state (38% down). The yield has jumped to 7.6%.

Telus also has a more diverse business model, where telehealth and smart home security are also prominent domains in addition to the classic real estate ones.

Foolish takeaway

The five stocks are among the best you can buy right now, especially if you are optimistic about the long-term performances and return potential of the stocks and a healthy progression of the underlying businesses.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FirstService and TELUS. The Motley Fool has a disclosure policy.

More on Investing

A stock price graph showing growth over time
Tech Stocks

1 Hidden Catalyst That Could Ignite Dye & Durham Stock 

Dye & Durham stock surged more than 15% in the last two weeks. What is igniting the growth after a…

Read more »

Cogs turning against each other
Dividend Stocks

How Interest Rate Cuts Affect REITs

Now is a good time to investigate Canadian REITs and take a position in the form of stocks or exchange…

Read more »

a person searches for information on the internet
Tech Stocks

Before You Buy Nvidia: Here’s An AI Stock I’d Buy First 

Nvidia is the first stock that comes to your mind for AI. However, consider diversifying your AI stocks across the…

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

3 Affordable Passive-Income Stocks That Pay Monthly

These three monthly-paying dividend stocks could boost your passive income.

Read more »

Stocks for Beginners

The Best Stocks to Invest $2,000 in Right Now

Looking for the best stocks to buy now and hold for decades? Here's a trio that can provide growth and…

Read more »

dividends grow over time
Stocks for Beginners

3 Under-$10 TSX Stocks to Buy in July

These three stocks are cheaper than cheap, and could produce incredible returns as they continue to climb in the next…

Read more »

Stock Market

Here Are My Top 3 TSX Stocks to Buy Right Now

Looking for some businesses that could have upside from here today? Check out these three top TSX stocks.

Read more »

alcohol
Dividend Stocks

Retirees: 2 High-Yield Dividend Stocks to Buy in July

Retirees can rely on these dividend stocks for steady passive income and high yields.

Read more »