It’s been a bumpy first half of the year for Canadian investors. As we near the halfway mark of 2023, the S&P/TSX Composite Index is trading at just about flat on the year. On the surface, it may seem as if it’s been an unexciting year. However, as many investors painfully know, it’s been nothing but that so far.
The previously mentioned index has been on two runs already in 2023 that have returned a gain of more than 5%. Despite that, there’s not much to show as of right now for those two runs.
With the market now down close to 5% since the beginning of May, there are plenty of question marks as to how the next six months of 2023 will go.
Fortunately, at least for long-term investors, that is, there’s no need to worry all that much about that. What’s truly important is finding high-quality businesses to invest in and then holding for the long term.
If that’s what your plan is, then there’s no need to stress about the market’s short-term volatility.
With that, here are three TSX stocks that any long-term investor would be wise to have on their radar.
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Brookfield Infrastructure Partners
Investing doesn’t need to be exciting. It certainly can be, but long-term investors know that sometimes it’s best to be boring.
When it comes to boring, but dependable companies, the utility sector should be top of mind. With high yields and low levels of volatility, what’s there not to like?
At a market cap of $20 billion, Brookfield Infrastructure Partners (TSX:BIP.UN) is a leading Canadian utility provider. The company also boasts an international presence, providing its shareholders with much-needed global exposure.
Growth investors may need to temper their expectations with this utility stock. But for patient investors looking for limited volatility and a nearly 4.5% dividend yield, this company is a top pick.
Lightspeed Commerce
On the flip side of low-volatility utility stocks is the high-flying tech sector.
Many growth stocks in the tech space continue to trade below all-time highs that were set in the growth-filled year of 2021.
It’s been mostly downhill since late 2021 for Lightspeed Commerce (TSX:LSPD) and many other tech stocks. Shares of Lightspeed are currently down close to 90% below all-time highs. The tech stock is now trading at close to the same price that it went public at in 2019.
Valuation has played a key role in the stock’s erratic performance dating back to 2020. Putting the stock’s recent performance aside, though, the business itself has continued to grow revenue at a double-digit rate.
It may take time to return to its market-crushing ways, but there are lots of reasons to be a bullish long-term shareholder of Lightspeed.
Northland Power
If the first two companies were leaning too far in one direction for you, Northland Power (TSX:NPI) may be just the right fit.
The renewable energy stock pays a top dividend, which is currently yielding above 4%. In addition, Northland Power has the potential to be a long-term, market-beating performer.
Alongside many others in the sector, shares of Northland Power have been on the decline since early 2021. As a result, the stock has been an underperformer over the past five years, when excluding dividends.
Those bullish on the long-term rise of renewable energy won’t want to miss out on this buying opportunity.
