Thanksgiving: 3 Canadian Stocks I’m Thankful to Have

It’s Thanksgiving! Which stocks do you appreciate having in your stock portfolio? They might provide you peace of mind, income, price appreciation, or all of the above!

Happy Thanksgiving, Canadian investors! While enjoying hearty meals, let’s be thankful for what we have. I’m grateful to be the owner of quality Canadian stocks, including Royal Bank of Canada (TSX:RY)(NYSE:RY), Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP), and Canadian Pacific Railway (TSX:CP)(NYSE:CP).

Royal Bank of Canada

I’m thankful that I had the opportunity to buy some RBC shares during the pandemic market crash. Despite not grabbing the shares at the lowest point, I still managed to lock in a nice yield of close to 4.6%. And the shares have appreciated by more than 35%.

There isn’t any more I could ask for from the big Canadian bank stock. It gives me peace of mind from holding it because of its stability. It’s the kind of quality business that can quickly recover its earnings after a down year. Therefore, RBC has been able to pay a solidly safe dividend for decades. Its 10-year dividend-growth rate is about 8%.

Currently, Royal Bank stock is fairly valued and offers a yield of about 3.4%. So, it’s a hold at the moment.

Brookfield Infrastructure

From the bottom of my heart, I’m grateful that Brookfield Infrastructure is one of my oldest stock holdings. Not once did I doubt about the business. Because of my high conviction in the dividend stock, I was able to add shares whenever it tanked.

Brookfield Infrastructure has increased its cash distribution year in year out since it was spun off from Brookfield Asset Management about 12 years ago. Specifically, in that period, it increased its cash distribution at a compound annual growth rate of approximately 10%.

The global infrastructure company has grown at an above-average pace, because it enjoys multiple competitive advantages. For example, it is a value investor who isn’t shy to sell mature assets to recycle the capital for higher returns elsewhere. It has the capability to invest globally for the best opportunities. Just in the last year, it sold three assets for proceeds of about $2 billion, equating to a weighted average rate of return of approximately 33%. In another perspective, BIP got total returns of approximately 390% from these investments.

The dividend stock trades at a slight discount today. So, interested investors can consider buying some shares. BIP currently offers a yield of roughly 3.6%. Furthermore, management is inclined to increase the cash distribution by 5-9% per year to continue attracting long-term investors.

Canadian Pacific Railway

The market has my gratitude. Thanks to the correction in CP stock recently, I was able to add it, as one of the newest holdings, to my diversified portfolio. The railroad stock is an essential business that transports goods, such as grain, fertilizer and potash, food, forest products, automotive, industrial products, and energy across Canada and the United States. CP is acquiring Kansas City Southern, which could make it more competitive with the expanded geographical reach to Mexico.

The railroad stock has historically expanded at a double-digit rate. Its 10-year dividend-growth rate is approximately 13%. Going forward, it can potentially grow by about 9% per year. The stock’s dip puts CP at a discount for investors interested in buying some shares today.

Food for thought

This Thanksgiving, which stocks are you grateful to have in your stock portfolio? They might be the candidates that can provide secure returns for the long haul!

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.

The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV, Brookfield Infra Partners LP Units, and Brookfield Infrastructure Partners. Fool contributor Kay Ng owns shares of Brookfield Asset Management, Brookfield Infrastructure, Canadian Pacific Railway, and Royal Bank of Canada.

More on Stocks for Beginners

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

bulb idea thinking
Stocks for Beginners

2 Stocks That Could Help You Get Richer in 2025

It’s time to prepare for 2025 before you leave for the holidays. Here are two stocks that could make you richer…

Read more »

Middle aged man drinks coffee
Stocks for Beginners

The Best Investment Hack Every Investor Should Know

An investment hack doesn't have to be risky, tricky, or any of those scary ideas. In fact, it can be…

Read more »

Investor reading the newspaper
Stocks for Beginners

A Better Post-Earnings Buy: Restaurant Brands or Lightspeed?

These two retail stocks have come out with earnings, but which is the clear long-term winner for investors?

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

3 Everyday CRA Red Flags Investors Should Really Know

The CRA can be a blessing and a curse, but if you make sure to follow the rules and not…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Canadian National Railway Stock is on Sale: Why Now is the Time to Invest

CNR stock has long been a top stock, with a solid position in a railway duopoly. But right now is…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

This 7.9% Dividend Stock Pays Cash Every Month

We all want dividends, and having them come out monthly is ideal! But this might be a strong choice for…

Read more »