The TSX Composite Index recently reached its highest level in over 22 months. While the Toronto Stock Exchange may continue to trade higher in the near term with growing expectations of rate cuts, it’s hard to predict how long the bullish sentiment will last — especially because the global economy is still facing many challenges, including slowing global economic growth, inflationary pressures, and geopolitical conflicts. Therefore, investors should be cautious and focus on quality large-cap stocks that can withstand market volatility and deliver consistent returns over the long term.
Here are three no-brainer TSX stocks with strong growth prospects you can buy in 2024 and hold for years to come.
Nutrien stock
Nutrien (TSX:NTR) is the first TSX stock you can consider buying on the dip in 2024. After rallying 61% in the previous two years, NTR stock plunged nearly 25% in 2023 due mainly to a weakness in its financial growth trends. The stock has extended these losses by another 4.3% in 2024 so far to currently trade at $71.47 per share with a market cap of $35.4 billion. The recent selloff in its share prices, however, has made NTR’s annualized dividend yield look even more attractive, currently standing at 4.1%.
As prices for most of its products declined sharply in 2023, Nutrien’s annual sales slipped by nearly 26% YoY (year over year) to US$28.1 billion. On the positive side, the company expects to increase its fertilizer sales volumes and post stronger retail earnings in 2024 as the demand for its products remains firm and the crop inputs market continues to stabilize. Given these positive factors, I expect NTR stock to stage a sharp recovery in the near term as soon as economic challenges start subsiding, making it a no-brainer TSX stock to buy on the dip in 2024.
Teck Resources stock
Unlike Nutrien, the shares of Teck Resources (TSX:TECK.B) have rallied sharply in the last few years. While Teck stock currently trades with a minor 1.7% year-to-date gains, it has more than doubled in value in the last three years. The stock of this Vancouver-headquartered mining firm trades at $56.98 per share with a market cap of $29.5 billion. The mining company also rewards its investors with a quarterly dividend of $0.125 per share.
Despite facing the global pandemic-driven operational challenges and a tough economic environment in between, Teck’s adjusted earnings have gone up by nearly 27% in the five years from 2018 to 2023, reflecting the underlying strength of its business model.
As Teck continues to increase its focus on base metals and copper growth portfolio after the sale of its steelmaking coal business, its financial growth trends could strengthen further, which should help its share prices inch up.
Dollarama stock
Dollarama (TSX:DOL) is the third pick in my list of no-brainer TSX stocks to buy in 2024. This Montréal-headquartered value retailer has an excellent track record of yielding outstanding returns for investors as its shares have risen in nine out of the last 10 years. In 2024 so far, DOL stock has risen nearly 10% to trade at $104.93 per share with a market cap of $29.3 billion. It currently also pays a quarterly dividend of $0.0708 per share.
Even as many retailers have struggled due to high inflation and the economic slowdown of late, Dollarama’s earnings in the last 12 months jumped around 19% YoY to $5.7 billion. As the demand for its affordable essential household products usually remains strong even during economic slowdowns, you can expect Dollarama stock to continue outperforming the broader market in the long run, making it a really attractive TSX stock to buy in 2024 and hold forever.
