With the new year underway and fresh TFSA contribution room available, many Canadians are thinking about how to put that $7,000 to work and what the best stocks are to buy right now.
The smartest approach is to spread your capital and diversify across high-quality businesses. This way, you give yourself the best chance to build wealth while mitigating risk.
So, if you’ve got $7,000 you’re looking to put to work, here are seven of the best Canadian stocks to buy right now.
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Three top stocks for reliability and dividends
If you’re looking to shore up your portfolio, boost your passive income, or both, three of the best Canadian stocks to buy right now are Brookfield Renewable Partners (TSX: BEP.UN), Granite REIT (TSX: GRT.UN) and Nutrien (TSX: NTR).
First off, Brookfield Renewable is one of the best and most reliable dividend growth stocks that Canadians can buy now.
Not only does it offer decades of growth potential, thanks to its massive portfolio of renewable power assets around the world generating predictable cash flow, but it also has one of the best management teams in the industry. Plus, it has significant potential to earn investors huge capital gains and consistently increases its distribution, while its yield is sitting at a compelling 5.3%.
Granite REIT is another one of the best Canadian dividend stocks to buy due to the combination of reliability and growth potential it offers.
The stock owns industrial and logistics properties across North America and Europe. Demand for these assets has consistently increased in recent years thanks to e-commerce and supply chain investment.
Furthermore, Granite REIT offers investors a yield of 3.9% today and has a payout ratio of less than 70%.
Meanwhile, Nutrien is one of the largest agricultural input companies in the world, operating in an industry that is essential no matter what the economy is doing.
It’s a massive company providing essential services, and the scale of its operations, vertical integration, and disciplined capital allocation make it one of the most reliable long-term investments on the TSX. Currently, Nutrien offers a yield of roughly 3.2%.
Two of the best Canadian growth stocks to buy right now
While Brookfield, Granite, and Nutrien all still offer long-term growth potential in addition to their reliability, two stocks that offer even more growth potential are Jamieson Wellness (TSX: JWEL) and GFL Environmental (TSX: GFL).
Jamieson is a high-quality health and wellness company with one of the best-known brands in Canada and growing international exposure.
It’s one of the best Canadian stocks to buy now because it’s defensive, and demand for vitamins and wellness products continues to grow worldwide. Furthermore, Jamieson has proven it can scale efficiently while maintaining strong margins.
GFL, on the other hand, operates essential waste management and environmental services across North America.
While it may not sound exciting, it’s an excellent long-term investment because the business benefits from recurring revenue, long-term contracts, and steady demand.
Furthermore, GFL has proven for years that it can rapidly grow through acquisitions and scale its operations to improve profitability.
Best Canadian stocks for value investors
There aren’t a tonne of high-quality stocks you can buy that are dirt cheap in this environment; however, two of the best Canadian stocks to buy at a discount today are Cargojet (TSX: CJT) and Canadian Apartment Properties REIT (TSX: CAR.UN).
Cargojet is the most dominant company in Canada’s air cargo market, directly benefiting from the consistent growth in e-commerce and demand for overnight delivery.
Although the stock has pulled back from its highs due to a temporary slowdown in discretionary spending, Cargojet still holds that dominant position and has significant potential for gains as the economy improves, interest rates decline, and inflation continues to normalize.
Canadian Apartment Properties REIT (CAPREIT), meanwhile, is the largest residential real estate stock you can buy. It remains cheap after higher interest rates impacted profitability and slowed its ability to expand operations over the last few years.
Therefore, it currently trades at a compelling valuation, making it easily one of the best Canadian stocks to buy right now.
