August can make even experienced investors second-guess themselves. Earnings season brings fresh numbers, summer trading can exaggerate price swings, and one unexpected headline can turn a calm morning into a very dramatic lunch.
Rather than predicting every short-term move, investors can focus on businesses producing stronger earnings today while building toward something larger. That approach creates room for income, recovery potential, and growth without leaning on the same familiar stocks yet again.
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What makes a top stock?
A strong August buy needs more than a popular ticker. The company should have a durable business, a clear reason earnings could keep rising, and enough financial strength to survive when markets become less cooperative. Building a balanced mix when buying stocks in Canada also helps keep one disappointing quarter from sinking the whole plan.
With that balance in mind, I would consider Bank of Montreal (TSX:BMO), Suncor Energy (TSX:SU), Shopify (TSX:SHOP), Manulife Financial (TSX:MFC), and Loblaw Companies (TSX:L).
Bank of Montreal
BMO offers both income and an improving earnings story. Second-quarter adjusted net income climbed 34% year over year to $2.7 billion, while provisions for credit losses declined. The bank also raised its quarterly dividend to $1.71 per share, giving investors more income while earnings recover.
Credit losses and slower loan growth remain risks, especially if the economy weakens. Still, BMO’s Canadian, U.S., wealth-management, and capital-markets businesses provide a steadier financial foundation before adding more cyclical energy exposure.
Suncor Energy
Suncor generated $4 billion in adjusted funds from operations during the first quarter, helped by stronger pricing, higher sales volumes, and its integrated upstream and refining operations. Management also increased planned 2026 share repurchases to nearly $4 billion.
Oil prices can pull earnings and the share price sharply in either direction, so Suncor won’t provide perfectly smooth returns. That commodity exposure makes the next stock’s digital growth particularly useful.
Shopify
Shopify stock’s first-quarter revenue jumped 34%, while the free cash flow margin reached 15%. Merchants processed more than US$100 billion in gross merchandise volume (GMV) during the quarter, showing how deeply Shopify stock now sits inside global commerce.
The valuation leaves little room for weak execution, and slower consumer spending could pressure merchants. However, Shopify stock’s expansion into artificial intelligence (AI)-powered commerce gives this group a growth engine, which pairs nicely with a more income-focused insurer.
Manulife Financial
Manulife produced $1.8 billion in first-quarter core earnings, up 8% year over year, while its Asian insurance operations continued delivering strong growth. The company combines insurance income with wealth management and a dividend that management increased earlier this year.
Market declines can pressure investment results, while wealth-management flows may change quickly. Even so, Manulife adds income and international exposure while the final company profiled brings more everyday Canadian spending to the portfolio.
Loblaw Companies
Loblaw’s first-quarter revenue rose 4.2%, while e-commerce sales climbed more than 20%. Its grocery banners, Shoppers Drug Mart locations, pharmacies, and PC Optimum program give it several ways to keep customers inside the business.
The shares aren’t cheap, and grocery competition remains intense. Still, Loblaw increased its dividend by 10%, marking 15 consecutive years of increases and strengthening its place among dependable Canadian blue-chip stocks.
Bottom line
BMO brings banking and income, Suncor adds energy cash flow, Shopify stock supplies growth, Manulife offers insurance exposure, and Loblaw provides defensive consumer strength. Investors could buy these stocks gradually through August, leaving room to take advantage if earnings season creates a better price.
