The September/October market dip can be a great time to add Canadian stocks you have always wanted in your portfolio. If you are looking for some opportunities, here are five Canadian stocks to contemplate buying right now.
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A top REIT
Chartwell Retirement Residences (TSX: CSH.UN) has been drawn down on fears about rising bond rates. As a real estate investment trust, Chartwell holds a fair amount of debt. This Canadian stock is sensitive to interest rates.
Yet, Chartwell has a very substantial growth opportunity in front of it. It is Canada’s largest retirement community provider with properties across the nation. Canada’s population is rapidly aging, and there is a wave of baby boomers hitting retirement.
Limited supply and surging demand mean Chartwell should enjoy years and even decades of rental rate growth. This Canadian stock yields 3.2%. You collect an attractive dividend while this thesis plays out.
A top defence pick
Calian Group (TSX: CGY) is a great bet if you are looking for exposure to defence spending initiatives in Canada. This company provides crucial healthcare, training, cyber, and specialized technologies for defence and private applications.
The company is putting greater emphasis on its defence and satcom expertise. It only has a market cap of $946 million, but it has a backlog of over $1.4 billion projects.
Calian trades for 18 times forward earnings. With a mid-teens growth rate, it looks like a reasonable price for a company with the potential for solid growth in the coming years.
A top Canadian tech stock
Descartes Systems Group (TSX: DSG) is quickly transforming into an AI company, but the market has not yet recognized it. This Canadian stock provides a leading logistics network that is complimented by a suite of essential transport and supply chain software solutions.
The company is turning its vast amounts of data into AI solutions that save customers time and money. Descartes is highly profitable and cash generative. It has a cash-rich balance sheet that it is being deployed into accretive acquisitions.
This stock is down 11% in the past year. However, it has been delivering a consistent recovery from the bottom. It won’t be long until it is hitting new all-time highs again.
A top utility
With U.S. elections coming up, there is bound to be some market volatility. For that I want a stock like Fortis (TSX: FTS) in my portfolio. Fortis is a great Canadian dividend stock. It has 52 years of consecutive dividend growth.
There are not many stocks with a better track record. This high-quality company has a strong balance sheet, crucial assets, and predictable income streams. FTS is a great Canadian stock for high single-digit annual returns for years to come. It yields 3.3% right now.
A top Canadian energy stock
Cenovus Energy (TSX: CVE) is becoming an energy behemoth in Canada. Last year, it acquired MEG Energy, a major oil sands producer in Eastern Alberta. It just announced plans to acquire Athabasca Oil, which is a premium thermal oil producer in the Fort McMurray region.
This places Cenovus with some premium production assets and extremely long reserves. With oil prices expected to remain elevated for some time, both upstream and downstream operations are yielding tonnes of cash.
Cenovus trades at a discount to other integrated peers. That gap should close in the coming years. This Canadian energy stock yields 1.9% with a fast-growing dividend.
