When market volatility hits, investors often focus on the shorter-term drop over the longer-term market potential. Fortunately, there’s no shortage of great Canadian stocks trading at discounted levels right now.
In fact, these three Canadian Stocks are prime targets of mine to scoop up if they fall any more than they already have.
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This stock offers insane growth
Most investors consider Enbridge (TSX: ENB) a great defensive pick with a juicy yield. What they often ignore is that during certain market events, the stock goes on sale, making it one of the Canadian stocks to load up on.
A great example of this was seen earlier this month. When the new administration in the U.S. announced that it may impose tariffs on Canada, the stock took a hit.
Fortunately, Enbridge is highly defensive and offers several well-diversified segments including renewable energy and a natural gas utility business. The company also boasts one of the best dividends on the market, which has coincidentally amassed 30 consecutive annual upticks.
Let’s not forget that Enbridge continues to eye further growth and acquisitions. A trio of acquisitions last year boosted its natural gas utility business into position as the largest on the continent. Enbridge also boasts $8 billion worth of growth projects in its backlog across those segments.
In short, Enbridge is one of the must-own Canadian stocks for investors. If the stock were to fall in price, it would be one of the best bargains on the market.
The big bank with big potential
Canada’s big banks are always considered among the best Canadian stocks to own. Apart from the reliable revenue stream they generate from the domestic market, they boast strong growth from international markets and a juicy yield.
That being said, Toronto-Dominion Bank (TSX: TD) was forced to put its growth plans on hold last year. That’s because U.S. regulators found that the bank was liable for not doing enough to counter money laundering.
As a result, TD was subject to a hefty fine and its U.S. operations were put under an asset cap.
While the stock price has since recovered from that dip, TD remains near the top of any long-term shopping list. In fact, if TD’s stock price were to drop, it would handily be one of the Canadian stocks to scoop up.
In the absence of its growth-focused agenda, TD used that asset cap to turn its focus on organic growth in Canada and planning a share buyback.
Perhaps the main reason why TD remains one of the top Canadian stocks to buy is its dividend. TD offers investors a tasty quarterly dividend that as of the time of writing offers a 5% yield.
All aboard the growth train
Canadian National Railway (TSX: CNR) is yet another one of the Canadian stocks to buy. For those unfamiliar with the stock, Canadian National is one of the largest railways in North America with connections to three coastlines.
One of the reasons why railways make great investments stems from the sheer necessity that they provide. In short, railways connect ports, storehouses, and factories across North America.
The products hauled on those freight trains can vary. Canadian National hauls everything from automotive parts, chemicals and crude oil to precious metals, raw materials and wheat. This makes the railway one of the most defensive investments on the market.
Over the past year, the stock price has faced downward pressure leading to a 15% dip over the trailing 12-month period (as of the time of writing). This makes the already great investment one of the absolute best Canadian stocks to buy right now.
Prospective investors should also note that Canadian National also boasts a reliable quarterly dividend. As of the time of writing, the yield on that dividend works out to 2.5%. Also worth noting is that Canadian National is a Dividend Aristocrat providing annual upticks to that dividend for nearly three decades without fail.
Canadian stocks to buy – even if they don’t fall
The stocks mentioned above offer compelling growth and juicy income prospects. If they were to fall, they would be stellar stocks to scoop up.
In my opinion, one or all of the above stocks should be core holdings in any well-diversified portfolio.
