There are plenty of headwinds and catalysts for investors to consider in the market right now. For Canadian investors, this list could be much longer than for investors in other parts of the world.
Of course, there are the Trump tariffs ravaging the outlook for the Canadian economy as well as the outlook for the country’s currency. While this move in the Canadian dollar (weaker) should help many export businesses, the impact of tariffs has more than offset any sort of benefits on this front.
Accordingly, there’s plenty of skepticism around Canadian companies with significant exposure to the U.S. right now.
But for those investors who believe that Trump’s tariffs will indeed be used only as a negotiating tool and that we’ll be back to a world of free trade in relatively short order, here are two top Canadian stocks I think are worth buying with your next $5,000 right now.
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Suncor
An integrated energy giant focusing on producing crude oil primarily in Alberta’s oil sands, Suncor (TSX: SU) is a company I’ve been bullish on for quite some time.
Of course, the tariff picture has altered the company’s outlook considerably, and shares of Suncor stock should have certainly been thought to be a victim of this turmoil.
However, looking at the company’s stock chart above, it’s clear that investors aren’t being scared off by the recent turmoil. In fact, this is a company many view as integral to the North American energy independence dynamic, and Trump has already backed off on many energy-related tariffs. So, this is one sector many appear to feel comfortable with adding exposure to right now.
If that remains the case, I think Suncor’s valuation of less than 10 times earnings and its current dividend yield of roughly 4.5% make this Canadian company among the top dividend stocks worth buying right now.
Fortis
Another company I’ve been pounding the table on of late is utility giant Fortis (TSX: FTS). The diversified electric and gas utility company has continued to generate strong cash flow growth over time and continues to return more capital to shareholders each year in the form of dividends. Indeed, with a track record of more than 50 consecutive years of dividend hikes, this is a company I think investors can feel comfortable owning for the long haul, as another Canadian top dividend stock.
Now, Fortis’s dividend yield of just 3.9% does price in significant future dividend growth. So, while this yield isn’t as juicy upfront as that of Suncor, it’s one I think many yield-oriented investors can certainly get behind.
In my view, a well-diversified portfolio holding both stocks certainly makes sense in this current environment.
