Investors often view volatility as a reason to stay out of the market. What investors often disregard is the opportunity that a shift in the market can provide for long-term investments. More specifically, that volatility can result in some of the top TSX stocks trading at a decent discount.
Here’s a trio of those top TSX stocks for investors to consider buying this month.
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Option #1: Bank of Montreal
Canada’s big banks are almost always stellar investment options, and there’s a good reason for that. Whether it’s a stable revenue stream, a healthy dividend or a sound growth strategy, the banks have something for every investor.
And among those big bank stocks, Bank of Montreal (TSX: BMO) is one of the top TSX stocks for investors to look at right now. BMO is the oldest of the big banks and, as a result, has been paying out dividends for nearly two centuries without fail.
As of the time of writing, BMO offers a quarterly dividend that boasts a yield of 4.62%. This means that investors who drop $20,000 into the bank can expect an income of just shy of $900.
For long-term investors, that income is enough to generate more than a few shares in reinvestments. In other words, BMO is a superb buy-and-forget option, and that’s not even considering BMO’s growth potential.
That growth potential is focused on the bank’s expansion into the U.S. market, where it enjoys a presence in 32 state markets.
Option #2: Maple Leaf Foods
Another one of the top TSX stocks to consider buying right now is Maple Leaf Foods (TSX: MFI).
Maple Leaf Foods is one of the largest meat processing companies in Canada. The company sells a variety of protein-based products under multiple brands across Canada, the U.S. and abroad. In other words, there’s a defensive appeal to the stock that is often disregarded by investors.
Adding to that, the company’s stock price has struggled in recent years while it pushed through a slew of changes. Those changes include efforts to reduce costs while improving efficiency.
As a result, Maple Leaf Foods stock has dipped nearly 20% over the trailing 12-month period. Despite that dip, Maple Leaf Farms is forecasting strong growth this year, and the stock has risen nearly 10% year to date.
Throw in a juicy 4.55% dividend and a slew of juicy annual increases going back over a decade, and you have one of the must-have top TSX stocks for any portfolio.
Option #3: Telus
Canada’s big telecom stocks represent another option to acquire some of the top TSX stocks at a good price. Specifically, Telus (TSX: T) can offer investors both a juicy dividend and strong growth potential.
Telus boasts a reliable (and growing) revenue stream thanks to its core subscription-based services. Those increasingly defensive services are offered to customers across the country. This not only provides a diversified and growing revenue stream, but also helps fund an impressive quarterly dividend.
As of the time of writing, Telus boasts a very attractive, if not insane, 7.59% yield. The reason for that high yield is also why this is one of the top TSX stocks to buy right now.
Specifically, Telus (like its big telecom peers) has seen its stock price dip in recent years as interest rates and rampant inflation took a toll on the economy. Fortunately, now that rates are no longer rising, the outlook for Telus is improving.
Prospective investors looking for a juicy quarterly dividend with well over a decade of annual or better upticks should consider Telus as a core holding.
Top TSX stocks to buy today
No stock, even the most defensive, is not without risk. Fortunately, the trio of top TSX stocks mentioned above offer defensive appeal as well as juicy yields.
In my opinion, one or more of these stocks should be core holdings as part of any well-diversified portfolio.
Buy them, hold them, and watch them (and your future income) grow.
