The Canadian stock market has been on a tear over the past two months. After a 10% pullback in the first week of April earlier this year, the S&P/TSX Composite Index has returned close to 20%, putting the index up more than 5% on the year.
As hot as the market has been as of late, though, now isn’t necessarily the time to be on the sidelines. For those with long-term time horizons, there are plenty of top-quality TSX stocks trading at attractive prices right now.
With that in mind, I’ve put together a well-diversified basket of three Canadian stocks that are all trading at discounts today. Together, the trio of campaigns can provide an investment portfolio with market-beating growth potential, passive income, and stability.
Source: Getty Images
goeasy
goeasy (TSX:GSY) is an under-the-radar growth stock that rarely trades at a discount, which is where it finds itself today.
Even with shares down 30% from all-time highs, though, the stock is still up a market-crushing 150% over the past five years.
goeasy is a consumer-facing financial services provider. The company, unsurprisingly, has seen demand take a hit as interest rates have sky-rocketed in recent years. But with more rate cuts potentially around the corner, now could be an opportunistic time to start a position in this consistent market-beater.
If you’re looking to add some market-beating growth potential to your portfolio, I’d suggest taking advantage of this discount while it lasts.
Brookfield Renewable Partners
It’s not hard to find a discount in the renewable energy space today. Following two growth-filled years in 2019 and 2020, the sector as a whole has largely been on the decline since early 2021.
Excluding dividends, shares of Brookfield Renewable Partners (TSX:BEP.UN) are down nearly 50% from their all-time highs, which were last set in January 2021.
In the short term, aside from a dividend that’s currently yielding more than 5%, I wouldn’t expect much from a top renewable energy stock like Brookfield Renewable Partners. It may take time for the sector to rebound and for its leaders to return to their market-beating ways. But for investors with long-term time horizons, there could be some serious value here.
Brookfield Renewable Partners is no stranger to outperforming the market’s returns. So, if you’re bullish on the long-term rise in renewable energy consumption, I’d have this high-yielding energy stock on your watch list.
Bank of Nova Scotia
To balance out this basket, I’ve included a high-yielding, dependable bank stock.
If you’re looking for passive income and dependability, you can’t go wrong with any of the Big Five Canadian banks. But in this basket, I’ve included Bank of Nova Scotia (TSX:BNS), which is currently the highest-yielding amongst its peers.
At today’s stock price, Bank of Nova Scotia’s dividend is nearing a dividend yield of 6%. The other four major banks are all currently yielding below 5%. In addition, Bank of Nova Scotia has been paying a dividend to its shareholders for close to 200 consecutive years.
If your portfolio already skews towards growth stocks, adding a dependable dividend-payer like Bank of Nova Scotia might be a wise idea.
