Only time will tell if the top-performing TSX stocks are ready to keep on surging into 2025. Undoubtedly, it’s impossible to time markets accurately. A strong 2024 could easily lead to a less-than-stellar showing in 2024.
With some pundits calling for modest returns for stocks over the next decade, I believe that Canadians should be pickier about the kinds of stocks they buy.
Getting paid to wait is key to faring well in sideways markets
Specifically, they should insist on stocks that boast a margin of safety. Indeed, if stocks are going to go sideways for years, it’s vital that investors get paid while they wait.
That’s why dividends, I believe, could be key to faring well in an environment where it could be that much tougher to score sizeable gains. Remember, though, that just because the S&P 500 or TSX Index isn’t ready to roar doesn’t mean you should sit on the sidelines. Further, if you pick the right stocks (think deeper value names), I still think you can zig higher while the rest of the market zags.
So, without further ado, here is one top Canadian dividend stock that I believe is of sound value today and is likely to keep on executing its long-term growth plans.
Anything can happen in 2025. Be prepared and be ready to act
While I have no idea what’s in store for 2025, some investors may view recent newfound momentum as a sign that the stage is set for even more performance in the new year. Of course, you should be ready for anything in 2025, including a steep market correction.
If you’re a young investor, though, such corrections can be a good thing as they allow you a chance to get more shares with less. Unless you’re a retiree or an investor over 55, I’d argue that a correction should be applauded. If more new investors started treating sell-offs as a “sale,” like the Black Friday week, the likelier their results in markets would be better over the long haul.
So, without further ado, here are two intriguing value options that may still have gas in the tank as 2024 comes to a close.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) has been on a strong multi-year run, now up 165% in the past five years. Although the momentum has slowed, with shares up just 6% over the past year, I still think the $102 billion energy giant is one of the cheapest dividend-growth stocks to pick up on recent turbulence.
With a robust 4.53% dividend yield, you’re getting paid to wait, and as the well-run firm continues to make smart moves, I’d not be surprised if the dividend growth outpaces the peer group, even in a cooler environment for energy prices.
At 13.72 times trailing price-to-earnings (P/E), CNQ stands out as a top value pick-up for dividend and value investors alike. Though I don’t know what 2025 will be like, I think the recent slip off highs makes for a great entry point for those looking for a balance of passive income and growth. Just be prepared for a rough ride because CNQ is a choppy mover with a 1.88 beta, which entails higher market risk.
