Should you invest $1,000 in Harvest One Cannabis right now?

Before you buy stock in Harvest One Cannabis, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Harvest One Cannabis wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

Safe Stocks to Buy in a Bearish Market

Are you concerned about a bearish market? Consider buying safe stocks with nice dividend yields and quality earnings.

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In a bearish market, many stocks would be falling. For better peace of mind, you can target to buy safe stocks — ones that have decent dividend yields and quality earnings.

Stocks with decent dividend yields

In The Single Best Investment — Creating Wealth with Dividend Growth, author Lowell Miller who was previously the president of Miller/Howard Investments, wrote to target a dividend yield that’s 1.5 times to two times the market’s. The recent distribution yield of the Canadian stock market, using iShares S&P/TSX 60 Index ETF as a proxy, is 3.29%. So, Canadian investors who prioritize dividend investing can target a dividend yield of about 4.9% to 6.6%.

We can further extend this concept that a dividend stock with a lower dividend yield than 4.9% may be more conservative and that a dividend yield of greater than 6.6% may be at higher risk of cutting its dividend.

Earning a sufficiently high yield of 4.9% to 6.6% in the current environment may suggest that the stock is trading at a good valuation. Importantly, this dividend income provides stable returns no matter what stock prices do in the short term.

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Debt-heavy utility stocks have declined meaningfully in a higher interest rate environment. For instance, regulated utility stock Emera (TSX:EMA) has fallen about 15% in the last 12 months. It provides shareholder value from its dividend yield of 5.8%, which sits comfortably between the 4.9% and 6.6% range. At $47.42 per share at writing, it also trades at a discount of close to 19% from the 12-month analyst consensus price target.

As a regulated utility that provides essential services, its earnings tend to be resilient through economic cycles. In fact, Emera has increased its dividend for about 16 consecutive years with a five-year dividend-growth rate of 4.7%. Through 2026, management is committed to growing its dividend by 4-5% per year. Assuming no valuation expansion, investors can approximate long-term returns of around 9% per year, which is solid for a blue-chip stock.

What is considered “quality earnings?”

Quality earnings can be resilient earnings or persistently growing earnings — that is, earnings that grow in the long run. Emera’s earnings are pretty resilient. For example, in the last 10 years, its adjusted earnings per share only fell as much as around 10% in two years. In other years, they are growing.

Alimentation Couche-Tard (TSX:ATD) is an excellent example of a business with persistently growing earnings. In the past 10 fiscal years, its adjusted earnings per share increased at a double-digit rate every single year. Needless to say, its total returns have outperformed the Canadian stock market in the last 10 years by about 13.2% per year, delivering annualized returns of roughly 21% per year.

The global convenience store and roadside fuel retailer continues to be a defensive business in a high inflation, high interest rate macro environment. Therefore, investors should consider accumulating shares in a bearish market. At $68.98 per share at writing, analysts believe the stock trades at a discount of approximately 16%. Technically, the stock price momentum is stronger than most TSX stocks.

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 Kay Ng has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

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