The Canadian stock market really showed its strength earlier this month. After dropping more than 5% in less than a week, it took the S&P/TSX Composite Index less than two weeks to rebound and return to all-time highs. The index is now up more than 10% on the year, not even including dividends.
With more interest rate cuts potentially around the corner, now could be a wise time to put money to work in the Canadian stock market.
Here’s a well-balanced basket of four top Canadian stocks to have on your radar in September.
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Shopify
Long-term investors won’t want to miss out on the opportunity of loading up on Shopify (TSX: SHOP) at these prices.
The tech stock is currently trading more than 50% below all-time highs. Even so, shares are up close to 100% over the past five years, crushing the Canadian market’s returns.
Like many others in the tech sector, Shopify enjoyed massive gains in 2020 and 2021, which was then followed by a huge down year in 2022. But since late 2022, it’s been a gradual rise upward for Shopify, hinting that the tech stock is ready to return to its market-crushing ways.
Shares are up a market-beating 30% over the past 12 months. At this rate, investors won’t be able to pick up shares at a discount for much longer.
WELL Health Technologies
WELL Health Technologies (TSX: WELL) is another growth stock that experienced multi-bagger returns in a very short period of time following the 2020 market crash. Shares were riding a bull run of more than 400% at one point in 2020.
The company saw demand for its telehealth services abruptly skyrocket in 2020. Unsurprisingly, the stock has since cooled off, but shares remain up a market-crushing 170% over the past five years.
The telehealth sector may have come back down to reality, but there’s still plenty of long-term growth potential here.
If you’re willing to be patient, this $1 billion company is worth taking a chance on.
Bank of Nova Scotia
Now is as good a time as any to invest in Canadian banks. With top-notch dividends and bargain prices, what is there not to like about the Big Five today?
Bank of Nova Scotia (TSX: BNS) likely won’t be the fastest-growing stock in your portfolio, and there’s absolutely nothing wrong with that. The $80 billion bank can provide your portfolio with stability and a ton of passive income.
At today’s stock price, the bank’s dividend is yielding close to 6.5%. That ranks it as the highest amongst the major Canadian banks.
Brookfield Renewable Partners
Who said you need to choose between market-beating growth potential and a top dividend?
Brookfield Renewable Partners (TSX: BEP.UN) has a proven market-beating track record and is yielding above 5% right now.
In addition to that, shares are trading at a bargain price, as many companies in the renewable energy space are today.
Investors bullish on the long-term rise in renewable energy consumption should have this company on their watch list.
