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Highlights
- Investment in quality businesses can aid investors in wining against inflation and tackle tough times like the COVID pandemic.
- A financial stock mentioned here delivered a one-year return of almost 68 per cent.
- An energy infrastructure firm listed below will pay a quarterly dividend of C$ 0.86 per share on March 1, 2022.
Investment in quality businesses can aid investors in wining against inflation and tackle tough times like the COVID pandemic. Here are nine of the best Canadian stocks that may fetch significant returns and help investors in enhancing their financial wealth in the long haul.
1. Air Canada (TSX:AC)
Readers of Global Traveler recognized Air Canada as the Best Airline in North America on December 1, 2021, for the third consecutive year. On December 9, 2021, the airline inaugurated its first flight of a Boeing 767-300ER freighter from Toronto to Vancouver, which was scheduled to aid in supply chain dynamics in British Columbia.
Air Canada, which held a market capitalization of C$ 7.5 billion, tripled its operating revenues year-over-year (YoY) to C$ 2.1 billion in the third quarter of FY2021.
The airline stock closed at C$ 21.13 apiece on Friday, December 31, 2021, returning a month-to-date gain of over 1.5 per cent.
Also read: 5 Canadian stocks to buy for the New Year
2. Canadian National Railway Company (TSX:CNR)
Canadian National Railway Company saw its scrip close at C$ 155.38 apiece on December 31, 2021. The railway stock returned nearly 17 per cent in the past six months.
The railroad giant, which had a price-to-earnings (P/E) ratio of 23.53 per cent, reported diluted earnings per share (EPS) of C$ 2.37 for Q3, FY2021, reflecting a YoY surge of 72 per cent.
A global environmental non-profit organization, CDP, on December 7, awarded an 'A' to Canadian National Railway for its efforts to combat climate change.
3. Canadian Pacific Railway Company (TSX:CP)
Canadian Pacific Railway is expanding. On December 28, 2021, Canadian Pacific Railway signed an agreement with Canadian Tire Corporation (TSX:CTC) to extend a multi-year contract between them.
Both the companies will continue their year-long relationship where Canadian Pacific will ensure efficient and sustainable transportation of the retailers' goods across Canada.
The Canadian rail operator posted a four per cent increment in its revenues in Q3, FY2021 to C$ 1.94 billion. It will pay a quarterly dividend of C$ 0.19 apiece on January 31, 2021.
The rail stock closed at C$ 90.98 apiece on December 31, 2021, and surged by roughly nine per cent in the last three months
Also read: 5 Canadian sectors that outshone in 2021
4. CI Financial Corp (TSX:CIX)
CI Financial Corp, on December 15, announced to strategically invest in Columbia Pacific Wealth Management and Columbia Pacific Advisors to provide suitable financial solutions to clients in the United States and West Coast.
The financial service provider, on November 30, 2021, recorded total assets of C$ 338.1 billion, including preliminary assets under management (AUM) of C$ 149.4 billion and wealth management assets were C$ 188.7 billion.
CI Financial saw its stock close at C$ 26.44 apiece on December 31 and delivered a one-year return of almost 68 per cent.
5. Enghouse Systems Inc (TSX:ENGH)
Enghouse Systems Inc earned a net income of C$ 30.2 million in the fourth quarter of fiscal 2021 against C$ 29.4 million in the same quarter a year ago. The software company is scheduled to pay a quarterly dividend of C$ 0.16 apiece on February 28.
With a return on equity (ROE) of 20.38 per cent, the ENGH stock closed at C$ 48.43 apiece on December 31, 2021, and it had slipped by over seven per cent in the past month.
6. Manulife Financial Corporation (TSX:MFC)
Manulife Financial Corporation posted total revenue of C$ 15.5 billion and a net income of C$ 1.26 billion in the quarter ending on September 30, 2021.
MFC, which recorded an ROE of 13.56 per cent, saw its scrip close at C$ 24.11 apiece on December 31, 2021. The financial stock gained by over seven per cent in the past year.
7. Restaurant Brands International Inc (TSX:QSR)
On January 3, 2022, Restaurant Brands International Inc announced that Popeyes®, in association with Silla Co., will launch its restaurants in South Korea under an exclusive master franchise and development agreement.
The restaurant company recorded total revenues of US$ 1.49 billion in the third quarter of fiscal 2021. A dividend pay-out of US$ 0.53 apiece is expected on January 5, 2022.
Stocks of Restaurant Brands International Inc, with an ROE of 30.16 per cent, closed at C$ 76.70 apiece on December 31. On a month-to-date basis, its stock swelled by over seven per cent.
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8. Enbridge Inc (TSX:ENB)
Enbridge Inc posted an adjusted EBITDA of C$ 3.3 billion in the third quarter of 2021 compared to C$ 3 billion in the previous-year quarter. The energy infrastructure firm will pay a quarterly dividend of C$ 0.86 per share on March 1.
The energy stock, which owns and operates midstream assets, closed at C$ 49.41 apiece on December 31, 2021, and mounted nearly 21 per cent in the last year.
9. Calian Group Ltd (TSX:CGY)
Canadian business services provider Calian Group Ltd reported revenue of C$ 128 million in Q4 FY2021, indicating a YoY rise of four per cent. The company signed new contacts worth C$ 84 million in the latest quarter.
The CGY stock, which had a P/E ratio of 56.50, closed at C$ 61.54 apiece on December 31, 2021. Its stock increased by roughly 11 per cent month-to-date.
Bottom line
Investors ought to consider quality stocks from different sectors to diversify portfolio risk and earn quality returns in the long haul. One should also note the changing market dynamics to remediate towards right investments.
Also read: 5 Canadian dividend stocks to buy in 2022
