Investing in high-quality TSX stocks can help you earn stellar returns and generate significant wealth over time. While most TSX stocks have witnessed a solid rally over the last year, a few Canadian companies still have considerable room for growth. These fundamentally strong companies have solid growth prospects and the potential to deliver above-average returns.
Against this background, here are my three top TSX stocks to buy now.
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Alimentation Couche-Tard
Alimentation Couche-Tard (TSX: ATD) is one of the top TSX stocks for generating wealth. The company – which operates convenience stores, retails fuel, and provides electric vehicle (EV) charging solutions – has consistently delivered strong financials that have boosted its share price. For instance, Couche-Tard’s stock price climbed over 310% over the past decade, generating an average annualized return of 15.2%.
Thanks to its growing earnings base, the company rewards its shareholders with higher dividend payments. Notably, its dividend per share has grown at a CAGR of 25.6% in the last 10 years.
Couche-Tard is poised for continued growth thanks to its extensive network of stores, value proposition, and ease of shopping, which help attract customers. Additionally, its membership programs will further deepen customer engagement and drive growth. Meanwhile, the company’s strategic acquisitions will likely expand its footprint and accelerate growth. Further, the convenience retailer is poised to benefit from a growing focus on increasing private-label sales, which will likely enhance its margins and profits.
In addition, Couche-Tard is well-positioned to capitalize on the rising demand for renewable energy with its increasing push into EV charging. The retailer has over 2,600 EV charging points in Europe and 260 in North America, which will likely bring new customers and support its growth.
Bombardier
Canadian aviation leader Bombardier (TSX: BBD.B) is another top TSX stock worth investing in. Its stock has risen over 93% over the past year, owing to the ongoing momentum in its revenues, backed by increased aircraft deliveries and improved profitability. Additionally, the company benefits from its extensive aftermarket and support facilities network, which gives it an edge over its peers.
Further, Bombardier stock has significant upside potential ahead, as it is set to capitalize on the growing demand for business jets. The company will likely benefit from its new lineup of medium and large business jets and its focus on innovation.
This business jet manufacturer has diversified across defence, services, and the pre-owned aircraft market, which has added new revenue streams and is driving profitability. In addition, Bombardier has a strong balance sheet position, and it is optimizing it by improving liquidity and lowering its debt load, positioning it well to invest in new opportunities and accelerate growth.
goeasy
Investors can also consider goeasy (TSX: GSY) stock. Its solid growth prospects, attractive valuation, and consistent dividend growth make it a compelling long-term TSX stock. Notably, shares of this financial services company have gained over 228% in five years, reflecting a CAGR of 26.8%, outperforming the benchmark index on the back of its ability to consistently deliver stellar revenue and earnings growth. Further, goeasy has consistently increased its dividend over the past 10 years, which reflects its commitment to reward its shareholders.
goeasy stock could continue to trend higher, benefitting from its impressive financial and solid credit underwriting capabilities. Further, the company is well-positioned to capitalize on a growing subprime lending market.
In the future, goeasy financials will likely benefit from diversified funding sources, high loan demand, and increased focus on product and geographical expansion. The company’s strong balance sheet, stable credit performance, and improved operating leverage are poised to support its bottom line, drive dividend payments, and fuel its stock price.
