If you want to multiply your savings over time, you should invest consistently, even when markets are uncertain. The key is to identify high-quality stocks with strong fundamentals and growth potential, then stay invested for the long run to maximize returns.
Right now, the Canadian stock market is full of opportunities, with some top stocks still trading at attractive levels despite a recent broader market rally. If you have $2,000 to invest today, I’ve identified two top Canadian stocks that could deliver strong returns in the years ahead. Let’s take a closer look at why they look attractive.
Canadian Natural stock
Canadian Natural Resources (TSX:CNQ) is the first Canadian stock you can consider buying with $2,000 right now. As one of Canada’s biggest oil and gas producers, Canadian Natural Resources’s operations span North America, the North Sea, and offshore Africa.
CNQ stock is currently trading at $44.18 per share with a market cap of $92.7 billion. It’s also a strong dividend payer, offering an annualized yield of 5.1%, with a history of raising dividends for 25 straight years. The stock has had a bit of a mixed run recently, gaining nearly 8% over the last year but still trading 22% below its 52-week high.
In the third quarter of 2024, CNQ reported $8.9 billion in revenue, down 10% YoY (year over year). While its adjusted quarterly net profit also slipped to $2.1 billion, it exceeded Street analysts’ expectations of $1.9 billion by a significant margin. Last quarter, Canadian Natural also returned $1.9 billion to shareholders through dividends and share buybacks.
Its recent acquisition of Chevron’s 20% stake in the Athabasca Oil Sands Project boosts its oil sands ownership to 90%, which is expected to add about 62,500 barrels per day to its production. Of late, CNQ also picked up a 70% stake in the Duvernay play, which is likely to add another 60,000 barrels of oil equivalent per day in 2025. Given these strong fundamentals, Canadian Natural’s financial growth trends could improve in the coming years and drive its share prices higher.
Couche-Tard stock
Now, let’s look at another solid Canadian stock — Alimentation Couche-Tard (TSX:ATD) — that you may want to consider right now. This Laval-based company is a global leader in convenience retail and fuel, operating more than 16,800 stores across 31 territories under well-known banners, including Circle K and Couche-Tard.
ATD stock is currently trading at $72.49 per share with a market cap of $68.6 billion after witnessing a 10.6% value erosion over the last year. While its dividend yield isn’t high, it still offers a steady 1.1% annualized yield.
In its latest quarter ended October 2024, Couche-Tard’s total revenue rose 6% YoY to US$17.4 billion with the help of new acquisitions and solid performance in its wholesale fuel segment. However, the company’s quarterly net earnings dropped 13.5% from a year ago as fuel margins softened in the U.S. and inflation kept consumers cautious.
Nevertheless, Couche-Tard’s consistent focus on expansion brightens its long-term growth outlook. The company recently announced the acquisition of 290 fuel and convenience sites in the United States. Continued expansion, along with cost-cutting measures, could expand its profit margins in the years to come, which should help its share prices soar.
