3 Top TSX Stocks to Buy Today With $500

While some of the Canadian names indeed appear frothy at these record levels, some TSX stocks still offer handsome growth prospects.

| More on:

Canadian markets are making fresh highs every day. While some of the Canadian names indeed appear frothy at these levels, some TSX stocks still offer handsome growth prospects. Here are three of them for long-term investors.  

Air Canada

Many investors contemplated Air Canada (TSX:AC) going bankrupt last year amid the pandemic. However, its well-organized cost management and robust balance sheet effectively helped tackle the crisis. Although the global aviation industry is not fully out of the woods yet, the worst is certainly behind it.

More and more people will fly as mobility restrictions wane and the vaccination percentage grows. Like peer global passenger airlines, Air Canada will likely see a superior quarterly performance in the second half of 2021. That’s why I think it’s still not late to enter AC stock.

The flag carrier stock is up almost 25% so far in 2021. However, it offers significant growth prospects for long-term investors as things normalize and its cash burn minimizes. Although Air Canada may not return to profitability for the next few years, returning air travel demand and revenue recovery could fuel its stock to new highs.

Enbridge

If AC stock is a bet risky bet for you, consider stable dividend-paying Enbridge (TSX:ENB)(NYSE:ENB). It is one of the income-seeking investors’ favourite stocks on the TSX and yields a handsome 7%, more than double the TSX average. Enbridge has managed to raise shareholder payouts for the last 26 consecutive years.

But can it maintain the trend in the future?

Most likely, yes. Enbridge earns stable revenues from fixed-fee contracts that are not tied to volatile oil and gas prices. Besides, the company pays out a hefty 60%-70% of its distributable cash flow to shareholders.

Growth stocks generally beat slow-moving stocks like Enbridge. But many of us are not comfortable with the volatility of growth stocks. Enbridge offers a favourable risk-reward proposition with its handsome dividends and less volatile stock for those types of investors.

Maxar Technologies

Space tech stock Maxar Technologies (TSX:MAXR)(NYSE:MAXR) has shown a strong uptick in the last few weeks. The stock is up almost 40% since last month and might continue the momentum.

According to CNBC, Goldman Sachs sees a 45% upside in Maxar stock for the next 12 months. Maxar’s loss widened in the latest quarter, which weighed on the stock. Despite a loss, the company managed to repay debt during the last quarter.

Maxar offers space technology solutions and provides services like robotics, earth imagery, and geospatial data analytics. Geospatial imagery is gathering information and providing analytics services about human activities happening on the earth’s surface.

Heavy spending on space technology from both government and non-government customers underlines huge business opportunities for Maxar. Maxar stock looks attractive from a valuation standpoint. It is trading at a price-to-sales valuation multiple of 1.6 times, which indicates a big runway for growth from its current levels.

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 owns shares of and recommends Enbridge. The Motley Fool recommends MAXAR TECHNOLOGIES LTD.

More on Dividend Stocks

monthly desk calendar
Dividend Stocks

This 7.8% Dividend Stock Pays Out Every Month

Not all monthly dividend stocks are created equal. And this top stock is certainly a strong choice for passive income.

Read more »

A worker gives a business presentation.
Dividend Stocks

Is TMX Group Stock a Buy, Sell, or Hold for 2025?

TMX Group (TSX:X) stock has been a consistent wealth-builder, generating 4,630% in total returns since 2002. Should you buy, sell,…

Read more »

Man data analyze
Dividend Stocks

2 Deeply Undervalued Dividend Stocks to Buy in November

Here are two stocks that I view as deeply undervalued this November.

Read more »

Dividend Stocks

The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they're trending upwards, investors…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »