The Canadian stock market has been on a heck of a run this year, particularly over the past month. The S&P/TSX Composite Index is up close to 15% this year, not even including dividends. The index has surged close to 10% since early August.
Understandably, short-term investors may be hesitant to buy stocks today. With the market at all-time highs, investors looking to turn a quick profit may opt for a pullback before making a purchase. But for anyone with a long-term time horizon, there are plenty of top-quality stocks that you can feel good about buying today.
Here’s a list of five Canadian companies that long-term investors can be confident buying, regardless of how the overall marketing is trading.
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Stock #1: Bank of Nova Scotia
You can never go wrong with buying shares of a Canadian bank. The Big Five have been amongst the most dependable stocks on the TSX for years. Today, the banks can provide investors with a mix of dependability and passive income.
At today’s stock price, Bank of Nova Scotia’s (TSX: BNS) whopping 5.7% dividend yield has it ranked as the highest of the major Canadian banks.
In addition, the $90 billion bank can provide exposure to markets outside of Canada, including the U.S. and Latin America.
Stock #2: Shopify
Shopify (TSX: SHOP) is a household name amongst most Canadian investors, and for good reason. The high-flying tech stock has been a market-crushing performer ever since it joined the TSX in 2015.
This growth stock is loaded with long-term growth potential. And with the stock price down significantly from all-time highs, now’s a great time for a long-term investor to be loading up on shares.
Stock #3: Descartes Systems
Descartes Systems (TSX: DSG) might not be as well known as Shopify, but it has outperformed the tech giant in recent years. Shares of Descartes Systems are up 160% over the past five years, outpacing Shopify.
The $11 billion tech company has been a consistent market-beater for the past two decades. There aren’t many stocks on the TSX that can compete with Descartes Systems’s market-beating track record.
It might not get all the headlines, but this is as dependable as a growth stock that you’ll find on the TSX.
Stock #4: Fortis
With all that talk about growth, owning shares of a dependable utility stock can go a long way.
In comparison to the likes of Shopify, I certainly won’t make the case that Fortis (TSX: FTS) would be an exciting company to own. However, there’s absolutely nothing wrong with being boring when it comes to investing.
The utility company can help keep volatility to a minimum in an investment portfolio while also providing a steady stream of passive income.
At today’s stock price, Fortis’s dividend is yielding just shy of 4%.
Stock #5: Brookfield Renewable Partners
Who said you needed to choose between growth and passive income? Brookfield Renewable Partners (TSX: BEP.UN) has the potential to provide its shareholders with both a top dividend yield and market-beating growth.
Along with many others in the renewable energy sector, shares have been on the decline since early 2021. However, the drop in share price has sent the dividend yield soaring and is now above 5%.
Long-term investors who are bullish on renewable energy should not be on the sidelines right now. Brookfield Renewable Partners is just one example of a discounted market-beater that still has plenty of growth left in the tank.
