It’s been a bumpy ride for Canadian investors as of late. The high levels of volatility that investors have been experiencing can date back to late last year.
Over the past six months, the S&P/TSX Composite Index has experienced all kinds of highs and lows yet remains up 5% since last October.
Year to date, the index is about flat, and the volatility has unsurprisingly intensified. With no shortage of uncertainty in the macroenvironment right now, it’s understandable for investors to question if now is the right time to invest.
As volatile as the market is, though, that doesn’t necessarily mean investors should be on the sidelines. For anyone with a long-term time horizon who’s willing to be patient, the TSX is loaded with top-quality stocks trading at bargain prices.
I’ve put together a basket of three proven Canadian stocks to add to your watch list today. Regardless of how the broader market is performing, you can feel good about loading up on any one of these three stocks.
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Shopify
At this rate, it might not be long before Shopify (TSX: SHOP) reclaims its spot as the largest company on the TSX. The tech stock has been on a tear over the last two years, returning 130% to its shareholders. Even so, shares are trading at a 30% discount from all-time highs that were set in late 2021.
If you’re trying to limit volatility in your portfolio, Shopify might not be the best fit for you. But if you can handle the volatility, there’s no reason to doubt the company’s ability to continue crushing the market’s returns.
Brookfield Renewable Partners
Like many others in the renewable energy sector, Brookfield Renewable Partners (TSX: BEP.UN) has struggled to return anywhere near all-time highs that were last set in 2021. The dividend income is just about the only thing Brookfield Renewable Partners shareholders have been able to cheer about as of late.
Short-term investors might not see a ton of potential here. But over the long term, it’s hard to deny the huge growth opportunity in the renewable energy space.
For anyone looking for exposure to the sector, Brookfield Renewable Partners is an excellent option. The company has a global presence and a well-diversified portfolio of energy assets.
In addition, the stock is no stranger to delivering market-beating returns. And at today’s stock price, the company’s dividend is yielding a whopping 6%.
Toronto-Dominion Bank
Last on my list is a trustworthy, dividend-paying Canadian bank.
If you’re looking for dependability and passive income, the Big Five Canadian banks are a great place to start. They likely won’t be the most exciting stocks in your portfolio, at least in comparison to a company like Shopify. But when it comes to investing, there’s nothing wrong with boring.
Toronto-Dominion Bank (TSX: TD) is a top choice for me because of its international presence. The Big Five are all currently paying impressive dividend yields, but not all of them have a presence outside of Canada, like TD Bank.
Having that global diversification can go a long way for investors, especially during times of volatility.
