Recognizing businesses with a consistent track record of strong financial performance is key to building substantial wealth in the long run. The TSX boasts numerous such firms with solid fundamentals and an ability to generate robust financial results unaffected by economic fluctuations. As a result, investors looking to grow their savings through equity investments can confidently consider the shares of those Canadian corporations.
In light of this, here are five Canadian stocks you can confidently invest $500 in right now to beat the broader markets over time.
goeasy
goeasy (TSX:GSY) stock is my top pick. The company’s ability to consistently generate solid double-digit revenue and EPS (earnings per share) growth supports my bull case. Thanks to its stellar growth, goeasy stock has made its investors rich. For instance, shares of this subprime lender have grown at an impressive CAGR (compound annual growth rate) of over 30% in the last five years, handily outshining the broader market.
The lender is poised to benefit from the large addressable market, higher loan originations, and a growing loan portfolio. In addition, its stable credit and payment performance and operating leverage will drive its earnings. goeasy also returns substantial cash to its shareholders via higher dividend payouts. Meanwhile, its stock is still trading at a discounted valuation, considering its double-digit EPS growth and a decent yield of 2.9%.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX:ATD) stock presents a compelling combination of growth and stability, making it a robust addition to your investment portfolio. The retailer runs a low-risk business but delivers attractive returns. Its stock has grown at a CAGR of more than 18% in the last five years while protecting the downside risk of the portfolio. Additionally, it has consistently increased its dividend at a CAGR of approximately 27% over the last decade, positioning itself as an appealing income stock.
Alimentation Couche-Tard’s defensive business, extensive store presence in the Canadian market, strong balance sheet, and accretive acquisitions will enable it to deliver solid total shareholder returns. Also, its focus on cost optimization and driving organic growth supports my optimistic outlook.
Telus
Telus (TSX:T) emerges as an attractive long-term investment in the telecommunications space. The company has a proven track record of consistently achieving profitable growth. Telus’ expanding customer base, rising average revenue per user, and reduced churn rate contribute positively to its growth trajectory.
Looking forward, Telus aims to enhance its 5G coverage and PureFibre footprint, ensuring future growth. Simultaneously, the company’s expanding earnings base positions it to return cash to shareholders via increased dividend payments. Telus has distributed over $1.5 billion in dividends so far in 2023 alone and a cumulative payout of approximately $19 billion since 2004.
Canadian National Railway
Canadian National Railway (TSX:CNR) stock is a dependable choice for investors seeking stability, income, and steady capital gains. CNR stock has grown at a CAGR of over 12% in the past decade. Moreover, the company has increased its dividend at a CAGR of 14% since listing in 1995. This shows that Canadian National Railway has a proven track record of delivering solid total shareholder returns in the long term.
The company’s defensive business model and well-diversified portfolio position it to generate steady revenues. Additionally, its focus on operational efficiency will cushion its earnings, which the company expects to increase at a double-digit rate annually through 2026. Notably, the company’s services are essential for the economy, providing an additional layer of stability to its overall performance.
Dollarama
Dollarama (TSX:DOL) stands out as a top stock for both income and growth. It sells various products and focuses on value pricing, attracting consumers to its stores in all economic situations. Dollarama consistently delivers solid revenue and earnings growth, and distributes significant cash to its shareholders.
Looking to the future, the retailer’s expansive network of stores, commitment to value pricing, and efforts to enhance productivity are poised to propel its revenue and earnings. Furthermore, Dollarama has the potential to augment its shareholders’ returns by increasing dividend payments.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
