Investing in Canadian companies right now can be a bit tricky. Yet when it comes to identifying strong companies, investors want to look more towards the future, rather than the past.
While the past can tell us a lot, such as how the company manages to bring in profit and revenue, it can also keep us from focusing on growth opportunities. This is especially true during a time like now, when the TSX continues to stick around the $22,000 mark.
With that in mind, today we’re going to look at three top stocks on the TSX that offer major opportunities for investors. Especially in the long run.
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Lundin mining
Lundin Mining (TSX:LUN) is a key player in the copper production sector. And that’s great news, given that copper is set to explode in use not just over the next few years, but immediately. Since we need copper for everything from plumbing to electric vehicles, companies like Lundin have proven essential.
And notably, price weakness as of late with the price of copper fluctuating has made Lundin stock a great opportunity, especially after the company’s recent earnings reports. In the first quarter of 2024, Lundin stock reported a significant increase in copper production from its Chapada and Caserones mines. Chapada saw a 10,138-tonne increase in copper production and 14,000 ounces of gold, driven by higher recoveries and lower production costs. Caserones produced 34,216 tonnes of copper and 864 tonnes of molybdenum, benefitting from favourable foreign exchange rates due to the Chilean peso weakening against the US dollar.
Plus, investors can look forward to more growth, and dividends! Lundin Mining is actively engaged in expansion and exploration activities. The company is advancing its Josemaria Project with a targeted capital expenditure of $225 million and sustaining capital expenditures of $840 million. All while offering up a 2.5% dividend yield, with shares down 22% from 52-week highs. This makes it a prime opportunity for investors.
Nutrien
Another long-term buy is certainly Nutrien (TSX:NTR). The company focuses on fertilizer nutrients such as potash, and this has proven to provide the dividend stock with attention over the last few years. Potash prices soared when Russia invaded Ukraine, as Russia is a major producer of the fertilizer, but sanctions meant we needed fertilizer from elsewhere.
However, the price of potash shrunk, and so too did Nutrien stock. Yet that hasn’t turned the company into a bad buy. We need companies like Nutrien stock for the future, with arable land only decreasing. And the company is already seeing a turnaround.
During its first quarter, Nutrien stock reported earnings per share (EPS) of $0.61, exceeding analysts’ expectations of $0.46. The company achieved revenue of $7.27 billion, closely aligning with the expected $7.29 billion. And again, it offers up a solid dividend yield of 4.2%. So as the company continues to take over the market share of this sector, continue to keep it on your radar.
VXC ETF
Now it doesn’t all have to be about stocks. If you want global exposure, now is the time to do it. The markets around the world continue to wait with bated breath on when the right time will be to get back into the markets. And right now, if you want a deal, is the time.
That’s why Vanguard FTSE Global All Cap ex Canada Index ETF (TSX:VXC) is a prime choice. VXC provides broad exposure to a wide range of large-, mid-, and small-cap stocks across developed and emerging markets outside of Canada. VXC has demonstrated strong performance over the past year, with a total return of 20.7%. Since its inception, the exchange-traded fund (ETF) has an average annual return of 9.1%, including dividends.
Yes, dividends. While growth has been strong, investors can also grab a dividend yield of 1.6%. Plus, it offers an ultra-low management expense ratio of just 0.22%. So with strong dividends, global exposure, all for a low cost on high returns, VXC is a safe investment for every investor.
