3 TSX Stocks to Buy Right Now if You Have $3,000

Have some extra cash? Here are three top TSX stocks you can consider for long-term investing.

| More on:

Stocks have outperformed all the asset classes over the last few decades. But many investors overassume stock market risk, but perhaps it provides plenty of opportunities based on risk appetite and return requirements. Here are three TSX stocks you can consider for long-term investing.

Emera

Consider Canadian utility stock Emera (TSX:EMA). It is a $13 billion diversified utility company that runs regulated electricity and natural gas portfolio. Emera operates in six countries and serves almost 2.5 million customers. It makes nearly two-thirds of its earnings from the United States.

Utility stocks are relatively safer, because they generally make stable earnings in any economic condition. Though utilities grow typically very slowly against broader markets, Emera is a comparatively fast-growing company. EMA stock returned 10% compounded annually in the last decade, beating the TSX Composite Index.

Driven by stable earnings, Emera has managed to pay dividends for the last 28 consecutive years. It yields 5% at the moment, higher than TSX stocks at large. The company will likely continue to pay increasing dividends in the future backed by a solid balance sheet.

If you are looking for a low-risk investment and a decent passive income, Emera could be your top choice.

Premium Brands Holdings

One industry that’s fast growing and also has an all-weather appeal is the food-processing industry. And Canadian company Premium Brands Holdings (TSX:PBH) stands tall in the space. Its superior growth and a broad range of specialty food products differentiate it from its peers.

It is a $4.7 billion company that manufactures specialty foods and operates a premium food-distribution business. PBH makes almost two-thirds of its business from Canada, while the rest comes from the south of the border. It owns and operates popular brands like Harvest Meats, Piller’s, Freybe, Expresco, and Deli Chef, etc.

The company had a presence in Western Canada and revenues of a mere $0.2 billion in 2004. Now, after 16 years, Premium Brands operates in almost entire North America and has revenues of around $4 billion.

Premium Brands’s revenues grew by 23% compounded annually in the last decade. That’s quite a feat and resembles a tech growth stock. Notably, the company aims to achieve $6 billion in revenues by 2023.

PBH stock is up almost 75% since its March 2020 lows. The stock offers a solid investment proposition given its strong product portfolio and strong growth potential.

Aphria

Conservative investors would generally avoid cannabis stocks. But if you are okay with taking a relatively higher risk, it makes sense to bet on them with U.S. legalization in the pipeline.

Very few companies in the cannabis industry look well placed at the moment. Aphria (TSX:APHA)(NASDAQ:APHA) is one of them. Top pot stock Aphria is up nearly 300% in the last 12 months.

Its strong presence in Canada and Europe positions it well ahead among its peers. Its ongoing merger with Tilray is expected to close next quarter. The combined entity will likely have a greater dominance in Europe. Interestingly, legalization in the U.S. would open up a bigger market for cannabis companies like Aphria.

Aggressive investors who can stomach large swings of pot stocks can consider investing in cannabis for above-average potential gains.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned. The Motley Fool recommends EMERA INCORPORATED.

More on Investing

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »