There’s no question that it’s been a bumpy ride for Canadian investors as of late. One month ago, the S&P/TSX Composite Index dropped a staggering 10% in less than a week. Impressively, though, the index has managed to climb back 10% after bottoming out and is back to positive territory on the year.
In the short term, I don’t know if I’d bank on volatility slowing down anytime soon. It feels like there is so much uncertainty in the macroenvironment today, which is not what investors want to hear. But just because there are high levels of volatility in the stock market doesn’t necessarily mean you should be on the sidelines.
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Investing for the long term
For investors with long-term time horizons who are willing to be patient, there are plenty of deals to take advantage of today. The TSX is loaded with top-quality companies trading at discounted prices right now.
I will admit that it’s not easy to invest during volatile market periods. But before you know it, you’ll be thanking yourself for taking advantage of the market’s volatility.
With that in mind, I’ve put together a well-rounded basket of Canadian companies that should be on your radar. Together, the trio of stocks have the potential to provide a portfolio with market-beating growth potential, passive income, and dependability.
Stock #1: goeasy
This growth stock doesn’t go on sale often. So, if you’re looking to add some growth potential to your portfolio, you’ll want to act fast.
Shares of goeasy (TSX: GSY) continue to trade more than 20% below all-time highs. Even so, the growth stock is up a market-crushing 225% over the past five years.
With more interest rate cuts likely around the corner, now’s the time to load up on this consumer-facing financial services provider.
Stock #2: Bank of Nova Scotia
There’s nothing all that exciting about owning a Canadian bank. That is, in comparison to a growth stock like goeasy. What a Canadian bank can provide investors with, though, is a ton of passive income and dependability.
At a dividend yield of 6% today, Bank of Nova Scotia (TSX: BNS) is the highest-yielding amongst the Big Five. The bank has also been paying a dividend to its shareholders for close to 200 consecutive years.
Shares of Bank of Nova Scotia are only trading at a discount of 15% from all-time highs. That being said, there’s almost never a bad time to invest in a dependable bank stock like this one.
At a dividend yield above 6% and a payout streak of more than 200 years, you cannot go wrong with Bank of Nova Scotia.
Stock #3: Brookfield Renewable Partners
It’s not hard to find a discount in the beaten-down renewable energy space today. After two growth-filled years in 2019 and 2020, there haven’t been many gains since then for most renewable energy stocks.
Short-term investors might not have much interest here. But if you’re bullish on the rise in renewable energy consumption and are willing to be patient, now could be an excellent time to put some money to work.
Brookfield Renewable Partners (TSX: BEP.UN) is a global leader in the space. Owning shares of this stock provides instant exposure to the sector. And at today’s stock price, the company’s dividend is yielding a whopping 6.5%.
