The Canadian stock market has had no shortage of volatility in 2024. Unfortunately, that’s been something investors have been getting used to in recent years.
Despite the volatility, the Canadian stock market had a strong first half of the year. The S&P/TSX Composite Index is up close to 10% return and is trading just below all-time highs, which were set last week.
While short-term investors may hesitate to put money into the stock market in today’s volatile conditions, long-term investors don’t need to sweat it as much. Investors with time horizons of decades or longer have already accepted that they will deal with volatility. So, rather than try to time the market and load up during a bear market, long-term investors can spend their time wisely, researching top-quality companies to add to their portfolios.
With that in mind, I’ve put together a basket of three Canadian stocks you don’t need to think twice about buying.
Stock #1: Constellation Software
Don’t let the $4,000 share price keep you from adding Constellation Software (TSX:CSU) to your watch list. It may require a steep initial investment, but the tech stock has a proven track record of delivering market-crushing returns.
Also, it’s important to keep in mind that what matters is how much money you have invested in a company, as opposed to the number of shares you own.
You might consider waiting for a pullback, but this is not a stock that often goes on sale. Constellation Software is up 50% in the past year alone and close to 250% over the past five years.
This is a stock that has the potential to add a whole lot of growth to your investment portfolio.
Stock #2: Brookfield Infrastructure Partners
If you plan on owning high-growth tech stocks, owning a few shares of a trusty utility stock would be a wise idea.
In comparison to Constellation Software, there’s not a whole lot to get excited about with Brookfield Infrastructure Partners (TSX:BIP.UN). That is, unless you’re searching for dependability and passive income.
Utility stock can help minimize the impact of volatility through both defensiveness and dividends.
At today’s stock price, the company’s dividend is yielding about 5%.
Not every stock in your portfolio needs to be as exciting as Constellation Software.
Stock #3: Northland Power
If you’re struggling between choosing a dependable dividend stock or a potential market-beater, a renewable energy company could be the right fit for you.
The renewable energy space is full of discounts to choose from, including Northland Power (TSX:NPI). Shares of the $5 billion company are down more than 50% from all-time highs. The stock is also now trading at a loss over the past five years, excluding dividends.
On the bright side, the pullback has seen the dividend yield surge to above 5%.
Green energy stocks soared in the early days of the pandemic but have since come crashing down. Short-term investors might not have much interest in the space, but there’s loads of value for long-term investors to capture. Despite the poor performance as of late, the industry as a whole remains loaded with growth potential.
Investors who are willing to be patient should seriously consider buying shares of a beaten-down renewable energy stock today.
