Investing in Canadian stocks can significantly impact your financial future, potentially determining whether you retire comfortably or need to work a few extra years. Fortunately, the Canadian market is home to several outstanding stocks that can enhance your portfolio. Here, we highlight two top Canadian stocks that are excellent options for investors right now.
Table of Contents
Is it Time to Consider Fortis?
If you’re a long-term investor, Fortis (TSX) should already be on your radar. As one of the largest utility companies in North America, Fortis operates across a broad geographical footprint that includes Canada, the U.S., and the Caribbean.
What Makes Fortis a Top Pick?
Fortis stands out for its robust and reliable business model. The company benefits from long-term regulated contracts that span several decades, providing a consistent and predictable revenue stream. This stability allows Fortis to reinvest in its growth and offer an attractive dividend to its shareholders.
Currently, Fortis offers a quarterly dividend with a yield of 3.9%. For investors putting in $25,000, this translates into an income of just under $980 per year. Remarkably, Fortis has consistently increased its dividend annually for 50 consecutive years, making it a strong buy-and-forget option for a well-diversified portfolio.
Why Fortis is a Defensive Investment
Utility stocks like Fortis provide essential services, meaning there is no reduction in spending on utility bills, even during economic downturns. This feature gives Fortis a significant competitive moat, allowing it to weather market volatility better than many other sectors.
A Defensive Stock with Insane Growth Potential
Another compelling Canadian stock to consider is Alimentation Couche-Tard (TSX). Known globally as one of the largest operators of gas stations and convenience stores, Couche-Tard presents a unique blend of defensive stability and impressive growth potential.
Couche-Tard’s Growth Trajectory
Couche-Tard is renowned for its strategic acquisitions and has a history of targeting larger and more impactful deals. The company’s latest move involves a bid for Seven & I Holdings, the parent company of the 7-Eleven brand. If successful, this would be Couche-Tard’s largest acquisition to date and one of the largest deals ever involving a Japanese company.
Evolution and Expansion
Couche-Tard’s ability to integrate and derive synergies from its acquisitions is noteworthy. Additionally, the company is expanding into new markets and verticals, including the development of an electric vehicle (EV) charging network in the U.S. and ventures into the car wash industry.
Despite a 5% decline in its stock price year-to-date, Couche-Tard remains a robust growth opportunity. This temporary dip offers a rare chance to invest in a top Canadian stock at a discount.
The Top Canadian Stocks to Buy Today
Both Fortis and Alimentation Couche-Tard are excellent choices for investors seeking long-term growth and stability. Fortis provides a solid defensive investment with a strong dividend history, while Couche-Tard offers significant growth potential and market expansion opportunities.
Top 14 Essential Books for Mastering Money Management
Bad Habits That Keep You Broke
The Best Things to Spend Money On
15 Essential Sinking Fund Categories to Incorporate into Your Budget
Steps to Starting a Budget When You Are Clueless About Budgeting
For investors looking to enhance their portfolios with top Canadian stocks, these two options present compelling choices. Consider adding them to your investment strategy to benefit from their growth prospects and defensive qualities.