For investors seeking the top TSX stocks to buy to build a dream retirement, such a search can be a difficult one. There’s always the option of building a passive portfolio, with various index funds providing the ability for investors to gain broader exposure to long-term growth in equities. Indeed, in recent decades, this asset class has outperformed many others. And over the very long term, most expect this trend to continue.
However, I’m going to be looking at top TSX stocks I think have the potential to outpace the market over the coming decade. These are stocks with a strong track record of performance I think have what it takes to make an investors’ retirement dreams become a reality.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) is among the major Canadian companies I’ve pounded the table on for a long time. Looking at the convenience store and gas station giant’s stock chart below, such an investment would have certainly yielded incredible results in the past.
Of course, the question is whether this performance can continue moving forward. If the company’s recent results are any indication, I think this will certainly be the case.
In Couche-Tard’s fiscal first quarter, the company reported net earnings attributable to shareholders of US$790.8 million, or US$0.83 per diluted share. The company’s adjusted diluted net earnings per share came in at US$0.83, and its total merchandise and service revenues were US$4.5 billion, an increase of 5.1%.
So long as Couche-Tard can continue to expand its footprint organically and via acquisitions (whether or not its 7-11 deal works out), this is a company with the cash flow growth profile I think makes it a long-term winner moving forward.
Brookfield Asset Management
Brookfield Asset Management (TSX:BAM) is one of the largest and finest financial services companies in Canada, owning and managing commercial property, infrastructure, and power assets. While the company provides services to clients around the globe, the majority of its assets are located within Canada and the United States.
Recently, the company has agreed to invest more than $200 million into Infinium’s Project Roadrunner, which is under development in West Texas. In addition, it plans to invest in other Infinium projects globally. It is the first direct investment of Brookfield Asset Management in sustainable aviation fuel.
Brookfield Asset Management plans to raise approximately $20.2 billion for its fifth flagship real estate fund to expand its foothold in the global market. Moreover, the company has kept pace with the market historically and offers higher dividends to investors even after market fluctuations and slowdowns.
For those looking at an alternative investment asset manager with the potential to outperform long term, BAM remains a top pick in my books.
Royal Bank of Canada
Royal Bank of Canada (TSX:RY) is one of the largest banks in Canada, with a market capitalization of more than $200 billion. The bank has a track record of profitability and financial stability, operating in retail banking, capital markets, and wealth management services.
The Royal Bank of Canada has demonstrated strong performance in recent quarters, reaching an all-time high of $166.65 in its share price. Thus, Royal Bank remains one of the no-brainer TSX stocks to buy, even on strength. It is an incredibly high-quality bank that has shown far better resilience amidst the last several years of shaky industrial pressures.
Furthermore, the bank’s dividend growth has been exceptional, offering Canadian investors a regular stream of income, which they can invest further for compounding gains. Regarding any future difficulties, Royal Bank of Canada can manage them with ease due to its diversity, scale, and strong capital positioning.
