The Canadian stock market has rebounded impressively well over the past month. The S&P/TSX Composite Index is up more than 10% since bottoming out in early April, putting the index in positive territory for the year.
The tariff announcements in early April sent stock markets across the globe spiralling downward. The Canadian stock market as a whole dropped roughly 10% in less than a week. Like many other countries, though, the S&P/TSX Composite Index has been on a steady rise since its recent downturn.
Of course, anything can happen in the short term. This year has been filled with volatility, and I wouldn’t expect that to change anytime soon. But just because the market’s volatile right now doesn’t necessarily mean you should be on the sidelines.
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Long-term investing for the win
The beauty of investing for the long term is that you don’t need to sweat short-term headwinds. Instead, long-term investors can take advantage of market dips by loading up on top-quality companies at discounted prices.
With that in mind, I’ve reviewed two top TSX stocks that should be on your radar. That is, as long as you’re willing to be patient.
Together, the duo of stocks have the potential to provide a portfolio with a mix of market-beating growth and passive income.
Don’t miss your chance to load up while the two stocks are still trading at bargain prices.
TSX stock #1: Shopify
Opportunistic investors who took advantage of the sell-off in early April could be sitting on a gain of more than 25% from investing in Shopify (TSX:SHOP).
The tech stock has come roaring back over the past four weeks and looks to be back on track with its climb to new all-time highs.
Like many others in the tech sector, Shopify continues to trade below all-time highs from late 2021. The tech stock has made solid progress over the past two years, returning to its market-beating ways, yet continues to trade close to 40% below all-time highs.
For investors who are willing to take on the volatility for a chance at earning market-beating returns, Shopify is an excellent option. The company might be past its multi-bagger growth years, but I’d strongly argue that it’s still loaded with market-beating growth potential for years to come.
TSX stock #2: Northland Power
If you’re willing to be patient, now could be a great time to invest in the renewable energy space. The sector has been going through a downturn in recent years, presenting lots of buying opportunities for long-term investors.
It might take time, but I’m banking on the leaders in the space at some point returning to their market-beating ways. And in the meantime, it’s not hard to find a renewable energy stock with a dividend yield above 5% today.
Northland Power (TSX:NPI) could be an interesting pick for a patient value investor. Excluding dividends, the stock is down more than 50% below all-time highs, which were last set in early 2021. Before that, though, the stock was no stranger to outperforming the market’s returns.
At today’s stock price, Northland Power’s dividend is yielding a whopping 6.5%.
If you don’t mind being patient and are bullish on the rise in renewable energy consumption, Northland Power should be at the top of your watch list.
