It’s not easy to ignore all of the noise in the stock market today. With everything that’s been happening in the geopolitical landscape of late, it’s not surprising that volatility has spiked in recent weeks.
That being said, just because the S&P/TSX Composite Index is experiencing volatility does not necessarily mean you shouldn’t be investing right now. Short-term investors understandably may be hesitant to put their money into the stock market today. But for investors with long-term time horizons, there are plenty of great deals to take advantage of on the TSX.
I’ve put together a trio of Canadian stocks that have proven track records of rewarding shareholders. Together, the basket of companies has the potential to provide investors with a mix of market-beating growth potential, passive income, and diversification.
If you can handle the volatility and are in it for the long haul, don’t let the market’s volatility keep you on the sidelines.
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Constellation Software
At close to $5,000 a share, Constellation Software (TSX:CSU) is certainly not a cheap investment. Investors will need to pay up to own this Canadian tech stock.
While the price may be steep, Constellation Software is in a league of its own when it comes to dependable market-beating returns. Even as the company has matured and grown to a market cap size of $100 billion, it has still managed to largely outpace the market’s returns in recent years.
Shares of Constellation Software are up 25% over the past 12 months and more than 250% over the past five years.
The tech company might be past its high-growth days, but there’s still plenty left in the tank for Constellation Software.
Don’t let the high price tag keep you from starting a position in one of the highest-returning TSX stocks over the past two decades.
goeasy
At a market cap of just $2 billion, goeasy (TSX:GSY) is a far smaller company than Constellation Software. What they do have in common, though, is a proven track record of delivering market-beating returns.
Shares of goeasy are up close to 200% over the past five years. And that’s even with the stock trading 30% below all-time highs from 2021.
As a consumer-facing financial services provider, now could be an opportunistic time for a long-term investor to be loading up on shares of goeasy. Further interest rate cuts will likely lead to an increase in demand for goeasy’s products and services.
The high-interest rate environment is part of the reason why goeasy has struggled to return to all-time highs. But with more rate cuts potentially around the corner, we could see the growth stock at all-time highs before we know it.
Brookfield Renewable Partners
Last on my list is a beaten-down renewable energy stock with a sky-high dividend yield.
Renewable energy stocks exploded in 2019 and 2020. But since then, aside from the passive income from dividends, there hasn’t been much to cheer about.
Like many of its peers in the space, Brookfield Renewable Partners (TSX:BEP.UN) has been on the decline since early 2021.
In the short term, there very well could be more pain for renewable energy investors. But over the long term, it’s hard to deny the growth potential of the sector.
At a dividend yield above 6%, the passive income should tie you over until Brookfield Renewable Partners is back to its market-beating ways.
