There are a few factors that would qualify a stock as one of the best to buy right now in Canada. These would typically have a few standout qualities, such as strong financial health, consistent revenue and earnings growth, and a solid track record of returning value to shareholders through dividends or share buybacks. It would also operate in a resilient or growing industry, demonstrating an ability to adapt to market changes or capitalize on emerging trends.
Ideally, this stock would be trading at a reasonable valuation, offering both stability and the potential for future gains. Essentially, it’s a company that’s built to weather economic ups and downs while still offering growth opportunities. And boy, do I have a few for you.
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Dollarama
Dollarama (TSX: DOL) stock is looking like a great buy right now, and it’s not hard to see why. With a year-over-year stock price increase of over 53%, the company has been riding a wave of strong financial performance. Dollarama’s latest quarterly results showed an impressive 8.6% increase in sales and a 22.2% boost in diluted net earnings per share (EPS). As Canadian consumers continue to seek value, Dollarama has consistently delivered, offering essential goods at unbeatable prices. And this has helped drive comparable store sales growth of 5.6%.
Beyond its success in Canada, Dollarama’s expansion into Latin America through its Dollarcity partnership is another reason to be optimistic. The company recently increased its equity stake in Dollarcity and expanded into Mexico for even more growth. With a long-term target of 1,050 Dollarcity stores by 2031, up from the previous target of 850 stores, Dollarama is positioning itself as a major player in the value retail market across multiple regions. The combination of strong domestic performance and international growth makes Dollarama a strong investment opportunity.
Hydro One
Hydro One (TSX: H) is looking like a solid buy right now on the TSX as well, and for good reason. The company has been delivering strong financial results, with a notable 10.2% year-over-year growth in quarterly earnings and a steady increase in revenue. Its commitment to enhancing Ontario’s power infrastructure, such as the $472 million St. Clair Transmission Line Project, underscores its focus on long-term growth and stability.
What also makes Hydro One particularly attractive is its combination of steady dividends and a relatively low beta of 0.34, which shows that it’s less volatile compared to the broader market. With a forward annual dividend yield of 2.74% and a stock price that has climbed over 28% in the past year, Hydro One offers both income and growth potential. Its ongoing investments in infrastructure, alongside a robust financial position, make it a dependable choice for investors looking for stability and long-term value.
RBC
Royal Bank of Canada (TSX: RY) is looking like a fantastic buy after posting impressive third-quarter results for 2024. With a net income increase of 16% year over year and a healthy return on equity of 15.5%, RBC continues to demonstrate strong financial performance. The recent acquisition of HSBC Canada has further bolstered its position, contributing an additional $239 million to net income. This strategic move, coupled with higher net interest income from Canadian banking, makes RBC a compelling choice for investors seeking growth and stability.
Moreover, RBC’s forward-looking fundamentals are equally strong. The stock is currently yielding a solid 3.49% dividend, which is well-supported by a payout ratio under 50%. This reflects both the bank’s profitability and its commitment to returning value to shareholders. With the stock up over 33% in the past year and trading near its 52-week high, RBC not only offers attractive returns. But also the reassurance of being Canada’s largest bank with a diversified global presence. This combination of growth, income, and stability makes RBC a standout in today’s market.
