Finding the perfect mix of Canadian stocks to invest in can make the difference between retiring with a healthy nest egg, or needing to work a few more years. Fortunately, there are plenty of great top stocks to buy on the market.
Here’s a look at two of those stellar top Canadian stocks to buy right now.
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Is it time to consider Fortis?
Most long-term investors are familiar with Fortis (TSX: FTS). Fortis is one of the largest utilities on the continent. This utility stock boasts a massive portfolio spanning 10 operating regions, blanketing parts of Canada, the U.S., and the Caribbean.
What makes Fortis one of the top Canadian stocks to buy now is its lucrative business model.
In short, Fortis generates a reliable revenue stream that is backed by long-term regulated contracts. Those contracts span decades in duration translating into a predictable and recurring revenue stream.
It’s that predictable stream that allows Fortis to invest in growth and pay out a very handsome dividend. That won’t make Fortis the most exciting investment in your portfolio, but it is stable, offers some growth, and most importantly, is very defensive.
Utility stocks like Fortis provide a necessary service. And unlike consumer discretionary items, there is no trading down on your utility bill. This gives utilities like Fortis one of the most attractive moats on the market, able to handily weather any market volatility.
As of the time of writing, Fortis offers a quarterly dividend to investors that pays out a respectable 3.9% yield. This means that investors who drop $25,000 into Fortis will generate an income of just under $980.
Incredibly, that’s not even the best part.
Fortis has provided annual upticks to that dividend for an incredible 50 consecutive years. This makes it the ultimate buy-and-forget option for any well-diversified portfolio.
A defensive stock with insane growth potential
Another top Canadian stock for investors to consider right now is Alimentation Couche-Tard (TSX: ATD). For those unfamiliar with the stock, Couche-Tard is one of the largest gas station and convenience store operators on the planet.
Gas stations and convenience stores are incredibly defensive investments that can provide long-term growth opportunities. In fact, Couche-Tard has a long-standing record of seeking out increasingly larger acquisition targets. This fact makes it one of the best growth stocks on the market.
The latest is a friendly bid for Seven & I Holdings – the name behind the iconic 7-Eleven brand. If that deal were to go through, it would be the largest deal for Couche-Tard, and the largest of any company for a Japanese company.
That insatiable appetite for growth is one reason to love Couche-Tard, but there are several others to note. That includes the company’s special ability to integrate and absorb its acquisition targets, realizing significant synergies along the way.
Another key point to note is Couche-Tard’s ability to evolve its business, both to new markets as well as to new verticals. This includes the company’s venture to build out an EV network across the U.S., as well as its venture into the car wash business.
In short, Couche-Tard is an insane long-term growth opportunity for investors to consider right now. Prospective investors should also note that the stock trades down 5% year-to-date. This makes it a very rare discounted moment to pick up a top Canadian stock.
The top Canadian stocks to buy today
Both Fortis and Couche-Tard can offer long-term growth for all investors. They also provide significant defensive appeal, which can offset plenty of the volatility we’ve seen over the past year.
In my opinion, both stocks are great options for investors looking for top Canadian stocks to buy now and hold for the long term. Buy them, hold them, and watch them grow as part of your long-term well-diversified portfolio.
