Investing doesn’t have to be exciting to be successful. In fact, some of the best-performing portfolios are built by finding TSX stocks to buy that will quietly grow year after year while generating reliable cash flow and consistent earnings.
That’s especially true for long-term investors. Rather than trying to chase the next hot stock, building a portfolio with a mix of dependable growth stocks, reliable dividend payers, and defensive businesses can help you stay invested through all kinds of market environments.
So, if you’re looking to build a calm, boring, but winning portfolio, here are five of the top TSX stocks you can buy today.
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A long-term growth stock that keeps delivering
There’s no question that one of the best long-term growth stocks on the TSX is Dollarama (TSX: DOL). However, what specifically makes Dollarama one of the best long-term investments for Canadians is the combination of defensiveness and growth it offers.
In fact, because Dollarama is a discount retailer which tends to see the majority of its growth during worsening economic environments, it’s quickly become one of the best defensive growth stocks you can own for the long haul.
The stock can be more volatile in normal environments. But it’s consistently shown it can grow in any situation, and when the economy is strong, most of your other stocks will be performing well anyway.
So, the fact that Dollarama can add growth potential to your portfolio over the long haul, but especially help to protect your portfolio during worsening economic environments, makes Dollarama one of the best TSX stocks you can buy for a calm, boring, winning portfolio.
Three TSX stocks to buy offering a balanced mix of growth and reliable income
While Dollarama and its significant long-term growth potential are undoubtedly a top pick, many of the best long-term portfolios will feature stocks that offer a mix of reliable income and long-term growth.
That’s why three more of the best TSX stocks to buy now are Nutrien (TSX: NTR), Capital Power (TSX: CPX), and Granite REIT (TSX: GRT.UN).
Nutrien is a top pick because it operates in one of the world’s most essential industries. Regardless of economic conditions, food still needs to be produced, creating long-term demand for the company’s agricultural products.
So, although fertilizer prices can be cyclical, Nutrien’s global scale and strong asset base make it one of the highest-quality businesses in the sector and a TSX stock you can buy now and have confidence holding long term.
Meanwhile, Capital Power is an independent power producer that generates much of its cash flow through long-term contracts, helping create predictable earnings while supporting an attractive and growing dividend.
At the same time, continued investments in new generation assets provide opportunities for future growth.
Granite REIT rounds out the group as one of the top real estate stocks you can buy on the TSX.
Its portfolio of warehouses, logistics facilities, and distribution centres benefits from long-term leasing agreements with high-quality tenants, creating dependable cash flow while also allowing investors to participate in the continued growth of e-commerce and global supply chains.
A pure income stock built around generating consistent cash flow
While owning several stocks that provide both income and growth potential will be ideal for most investors, if you’re looking for even more income while still keeping the same calm, boring portfolio, Alaris Equity Partners Income Trust (TSX: AD.UN) is an excellent complement to the rest of the portfolio.
Instead of operating a traditional business, Alaris provides capital to private companies in exchange for ongoing distributions. That gives it exposure to a diversified portfolio of partner businesses while generating recurring cash flow that supports its attractive dividend yield, which currently sits at 6.4%.
The company’s business model is specifically designed to produce distributable income, making it a natural fit for dividend investors. At the same time, its diversified portfolio helps reduce the impact that any single partner can have on overall performance.
So, if you’re looking for high-quality TSX stocks you can buy to build a calm, boring, but most importantly, winning portfolio, Alaris is the perfect high-income complement to the other stocks on this list.
