Owning high-quality Canadian stocks and taking a long-term approach to your investments is the smartest way to put your hard-earned savings to work. Both the market and economy are constantly going to cycle, but the truly great businesses continue to grow shareholder value over the long term.
The stocks you want to focus on are companies with strong advantages that competitors can’t easily copy, steady cash flows that hold up in tough times, and management teams that know how to return value to shareholders through dividends, buybacks, or investing in growth.
So, with that in mind, if you’ve got cash that you’re looking to invest today, here are three of the best Canadian stocks to buy now.
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One of the best Canadian stocks to buy while it’s still ultra-cheap
Although many Canadian stocks are trading near or above their fair value, one of the best to buy now is Canadian Apartment Properties REIT (TSX: CAR.UN).
CAPREIT, as it’s known, is a top choice for many investors because it’s one of the most reliable real estate stocks on the TSX.
It owns a large portfolio of apartment buildings across Canada, with a big focus on major urban markets like Toronto, Montreal, Ottawa, and Vancouver. These are essential residential properties since people need places to live, no matter what the economy does. That makes CAPREIT incredibly defensive and a stock you can have confidence owning for the long haul.
Furthermore, after higher interest rates caused significant headwinds for many real estate stocks like CAPREIT in recent years, the stock now trades at a valuation that’s hard to ignore.
Currently, CAPREIT trades at a forward price-to-adjusted-funds-from-operations (P/AFFO) ratio of just 17.3 times. That’s well below its average P/AFFO ratio over the last 10 years of 23.5 times.
Therefore, while one of the best and most defensive real estate stocks in Canada trades at such a compelling valuation and offers a yield of roughly 4.1%, there’s no question it’s one of the best stocks Canadian investors can buy now.
A global convenience powerhouse
In addition to CAPREIT, another high-quality Canadian stock you might want to add to your buy list is Alimentation Couche-Tard (TSX: ATD).
Couche-Tard is one of the strongest and most consistent growth stocks on the TSX. It operates thousands of gas stations and convenience stores under brands like Circle K and Couche-Tard across North America, Europe, and beyond.
In addition to its consistent growth potential, both organically and through smart acquisitions, Couche-Tard is one of the best Canadian stocks to buy because the business is incredibly resilient. People buy gas, snacks, drinks, and tobacco every day regardless of economic conditions.
Therefore, given the defensive nature of convenience stores and Couche-Tard’s massive scale advantage with optimized supply chains, strong private-label products, and a focus on fuel margins, it’s a stock you can have confidence buying and holding for years.
One of the best defensive growth stocks to buy now
While CAPREIT and Couche-Tard both offer investors long-term growth potential and reliable defensive operations you can have confidence in, one of the best defensive growth stocks on the TSX has to be Jamieson Wellness (TSX: JWEL).
Jamieson is a leader in the Canadian vitamins, minerals, and supplements space with distribution in pharmacies, grocery stores, and online.
Therefore, not only is the business incredibly defensive operating in the health and wellness space, but it also benefits from powerful long-term trends such as an aging population, a rising focus on preventive health, and increasing consumer interest in wellness products.
Furthermore, in addition to the natural industry tailwinds that give Jamieson a ton of growth potential for years to come, it has also demonstrated a consistent ability to grow both organically and through acquisitions.
For example, over the years, it has delivered consistent revenue growth through new product launches, expanded distribution, and an increasing focus on international markets.
So, if you’re looking for one of the best Canadian stocks to buy now, Jamieson is certainly one you’ll want to consider.
