Based on the volume of trades in the last 10 days, the three most popular stocks on the TSX are all from the energy sector. But if you look a bit lower, other blue-chip stocks are currently quite popular among Canadian investors, and if you don’t own them yet, you may consider doing so now.
An energy stock
Canadian Natural Resources (TSX:CNQ) is among the most actively bought stocks on the market. It has risen over 5% in the last 10 days alone, though it’s still trading at an 18% discount from its all-time peak in April.
After months of decline, oil prices have started going up again, and many Canadian oil giants (integrated, upstream, and midstream) have followed that trajectory quite diligently.
The current bullish trend might be a good reason to consider this stock, but a much better reason is the company’s fundamental strengths. It has one of the largest energy reserves in North America, a massive portfolio of assets around the globe, and rock-solid financials.
It’s also a highly resilient stock, especially for an upstream company. It has offered fantastic growth in the last few years, but dividends are the primary reason this stock is considered a long-term holding.
A bank stock
Canadian bank stocks experienced a bullish surge in the last few years, but thanks to some regulatory challenges, Toronto-Dominion (TSX:TD) was a bit late for the party. This is no longer the case, and the bank stock has taken off, growing by about 8% in the last 30 days.
One catalyst behind this growth surge is the changes in the bank’s C-suite. A new chief operating officer (COO) has been nominated and is also named to take over the bank as the chief executive officer next year.
Hedge funds and retail investors are bullish on this stock, as apparent from the trading volume in the last ten days. It currently offers a yield of about 4.7%, and if you couple that with the stock’s short-term growth potential, the overall combination is quite healthy and compelling.
An insurance stock
Manulife (TSX:MFC) is one of the largest life insurance companies in the world. It has a massive global footprint and considerable assets under management and administration ($1.5 trillion). The company boasts about 35 million individual customers worldwide from multiple business segments.
It’s generally a slow moving stock, preferred for its dividends rather than its growth potential but the current bullish trend allows you to take advantage of both.
The stock has risen by about 50% in the last 12 months, an unprecedented growth pace considering its performance in the last decade. It’s also offering a healthy yield of about 4.1% and despite its growth numbers, the valuation is quite attractive.
Foolish takeaway
The three stocks are quite popular among investors right now, both retail and institutional. All three have considerable fundamental strengths that make them attractive picks, not just because of their current bullish trend and pace but as long-term holdings, especially for their dividends. Though buying now adds the growth incentive on top, augmenting the overall return potential.
