3 Top Canadian Stocks to Build a Portfolio on

These three top Canadian stocks are ones investors would be remiss to ignore at these levels today.

| More on:
investment research

Image source: Getty Images

It’s time for a mid-year portfolio review. Indeed, June is a great month to assess how investors want to adjust their portfolios to maximize their long-term returns.

Indeed, the TSX has a number of great long-term options to choose from. Here are three of the best to consider today.

Royal Bank of Canada

For investors in search of low-volatility growth stocks on the TSX, Royal Bank of Canada (TSX:RY)(NYSE:RY) remains one of my top picks. In the latest quarter, Canada’s largest company by revenue and earnings recorded staggering net income of approximately $4 billion. This represents a 171% increase in comparison to the figures reported during the same quarter last year. Furthermore, its adjusted earnings per share trumped analysts’ expectation by $0.28.

Royal Bank’s size is one of the most crucial factors that investors tend to consider. Indeed, this Toronto-based company boasts highly diversified revenue streams. It has been able to generate double-digit returns consistently for its long-term investors, which is extremely rare. This stock trades around the $125 mark and has a dividend yield of 3.4%. I believe that this is certainly an option worth considering for investors seeking a core portfolio holding.

Shopify 

Investors might have to break the bank to add Shopify (TSX:SHOP)(NYSE:SHOP) stock to their portfolio. However, it is expensive for valid reasons. Indeed, when it comes to growth stocks in the technology space, there are few better options on the TSX today.

The long-term outlook for the e-commerce sector remains extremely positive. More and more retailers switch to the online space from being a traditional brick-and-mortar company. I don’t anticipate this trend changing.

Accordingly, investors looking to take advantage of this growth catalyst ought to consider Shopify at these levels. The company continues to trade at a meaningful discount to its recent all-time highs. For those who believe this stock is headed back to making new highs, now would be a great time to consider adding to a position in Shopify today.

Suncor Energy

When it comes to pure-play energy stocks, Suncor Energy (TSX:SU)(NYSE:SU) has been one of my top picks for quite some. Only a few companies can measure up to this Calgary-based company as far as quality and defensiveness are concerned.

Without a doubt, Suncor’s fundamentals are top notch. Moreover, considering where energy prices are right now, one can expect this company’s cash flow position to remain strong, at least for some time.

Why?

Well, Suncor’s breakeven cost per barrel currently sits around US$35 WTI. With WTI oil recently hitting US$71.50, investors are getting a great margin of safety with this commodities player. The company has been prudent in managing its cost structure and is highly profitable right now.

Additionally, Suncor has been making incremental steps in improving its renewables portfolio. I think this company’s long-term growth potential is enhanced by such moves. Accordingly, this is a stock to invest in for the short, medium, and long term.

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 Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Energy Stocks

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Top Canadian Renewable Energy Stocks to Buy Now

Here are two top renewable energy stocks long-term investors can put in their portfolios and forget about for a decade…

Read more »

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

After 29 straight years of increasing its dividend and a current yield of 6%, here's why Enbridge is one of…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

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

Enbridge stock just hit a multi-year high.

Read more »

oil pump jack under night sky
Energy Stocks

Where Will CNQ Stock Be in 3 Years?

Here’s why CNQ stock could continue to outperform the broader market by a huge margin over the next three years.

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 »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Imperial Oil Stock a Buy, Sell, or Hold for 2025?

Valued at a market cap of $55 billion, Imperial Oil pays shareholders a growing dividend yield of 2.4%. Is the…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Where Will Imperial Oil Stock Be in 1 Year?

Imperial Oil is a TSX energy stock that has delivered market-thumping returns to shareholders over the last two decades.

Read more »