Income Investors: Here Are 15 Hot Canadian Stocks To Buy In June

After being decimated by the pandemic last year, Canadian stocks have been on a roll since the beginning of 2021. The S&P TSX Composite Index, which covers almost 95 per cent of the Canadian equities market, has soared by about 14 per cent year-to-date (YTD) and six per cent quarter-to-date (QTD). This uptrend is expected to continue throughout the year as the economy shifts into recovery gear. So, if you're looking for some top stocks to buy in June, you landed on the right page.

That said, do you have the following stocks on your watch list?

1. Newmont Corporation (TSX:NGT)

As per TMX data, Newmont is the world’s largest gold producer. It recently completed the acquisition of precious metal explorer GT Gold Corp, which will help increase the production of the company. In 2020 alone, Newmont produced 5.9 million attributable ounces of gold.

Soaring gold prices across the globe can boost the company's revenues in future. The share prices of Newmont have surged by 16.5 per cent YTD.

At market close on Friday, May 28, the NGT scrips were priced at C$ 88.76 apiece. Delivering solid first-quarter results of this year, the company produced 1.5 million attributable ounces of gold and said it is on track to meet full-year guidance. The adjusted net income also rose to US$ 594 million in Q1 2021.

2. Nutrien Ltd. (TSX:NTR)

Nutrien is the world's largest producer of fertilizers by capacity and its core strength is potash. The company is reportedly in talks with BHP Group (ASX:BHP), one of the world's leading resources company, to partner for a potash mining project. Nutrien could either acquire a stake in Jansen mine or become the seller and distributor of potash.

The fertilizers company pays a US$ 0.46 quarterly dividend to its shareholders. Nutrien reported sales worth US$ 4,658 million in Q1 FY 21, an increase of 11 per cent YoY.

NTR stock swelled by 58.3 per cent in the past year and holds a 2.71 per cent return on equity (ROE). The shares closed at C$ 75.13 per piece on Friday, May 28, a little less than the 52-week high of C$ 75.54 on May 10, 2021.

3. Ero Copper Corp. (TSX:ERO)

Ero Copper reported record copper production in the first quarter of 2021 and produced 12,638 tonnes. According to S&P Global Platts, the rise of copper prices will likely continue in 2021, and this will propel the growth of copper-producing companies.

The company has major operations in Brazil and holds a market cap of C$ 2.5 billion, as per data from the TMX. With a debt-to-equity ratio of 0.7, the company offers 83 per cent ROE and 28.9 per cent return on assets (ROA).

In Q1 2021, the gross profit soared to US$ 82.8 million and net income was US$ 32.1 million compared to a net loss of US$ 53 million.

4. MTY Food Group Inc. (TSX:MTY)

It is one of the leading franchisors of quick service and casual dining outlets in North America. There are speculations that COVID-19 restrictions will be lifted in a phased manner in Canada, with Quebec already allowing people to eat and drink on restaurant terraces and invite friends and family in their backyards.

If the situation improves, MTY Group will benefit from it. MTY scrip prices have skyrocketed by 149 per cent in the past year and 14.2 per cent last month. During the trading session on May 28, the stock achieved a 52-week high of C$ 62.28 before closing at C$ 61.40.

The revenues were C$ 118.96 million in the first quarter of this year and adjusted EBITDA was C$ 32.6 million.

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5. Loblaw Companies Limited (TSX:L)

Canada’s leader grocer and pharmacy retailer Loblaw recently achieved the target of reducing carbon emission and food waste ahead of schedule. On May 18, the company announced that it achieved the 2030 goal of reducing carbon emissions from operations by 30 per cent and reducing food waste by 50 per cent by 2025.

As consumers become more conscious of the environment, Loblaw could see an increase in consumers and sales. In the past six months, the stock surged by 15.6 per cent and 21 per cent in the last three months. At market close on May 28, the scrips were priced at C$ 74.34 apiece.

The company saw a 133 per cent YoY increase in e-commerce sales and the operating income rose C$ 617 million in Q1 FY21.

6. Saputo Inc. (TSX:SAP)

Saputo announced two strategic acquisitions on May 25, one in the dairy alternatives and the other in value-added ingredients segments. The company is a leading producer of dairy products and has a presence in over 50 countries.

In Q3 2021 ended December 31, 2020, the company's net earnings were up by 6.1 per cent YoY to C$ 209.8 million and adjusted EBITDA increased to C$ 431.1 million.

The SAP stock swelled by 22 per cent and over the past week, it surged by about six per cent and was priced at C$ 41.92 on Friday, May 28.

7. Canadian Natural Resources Limited (TSX:CNQ)

As one of the largest oil and natural gas producer and distributor in western Canada, Canadian Natural Resources produced 1.16 million barrels of oil equivalent per day (MBOE/d) in 2020 on average. With crude oil prices expected to rise further this year, the company seems to have good growth prospects.

In the first quarter of this year, the oil producer achieved a record quarterly production of 1.25 MBOE/d and its net earnings rose to a whopping C$ 1.38 billion against a net loss of C$ 1.28 billion in Q1 2020.

The shares of Canadian Natural Resources Limited returned 12 per cent in a month and climbed by about eight per cent QTD. Priced at C$ 41.85 apiece, the shares were 111 per cent up from a 52-week low of C$ 19.77 on October 2, 2020.

8. Tourmaline Oil Corp. (TSX:TOU)

Another oil & gas company is on this fast-growing hot stock list, with the scrips ballooning by 71.5 per YTD. In the first quarter of 2021, Tourmaline increased its average production to record 411,579 barrels of oil equivalent per day (boepd), which was ahead of the full-year guidance of 390,000-410,000 boepd.

With a dividend yield of 2.2 per cent, the company increased its dividend to C$ 0.16 per unit in March 2021. The shares closed at C$ 29.43 on May 28. Tourmaline stock has skyrocketed by 114 per cent in the past one year.

9. Suncor Energy Inc. (TSX:SU)

Suncor is the third energy company on our June’s hot stock list. Canada is on the path of reducing its carbon footprint and Suncor has partnered with ATCO to start a world-class clean hydrogen project. It is estimated that 300,000 tonnes per year of clean hydrogen will be produced from this project.

Suncor shares have been riding high for the past few months, surging by 34 per cent in the last six months. Since the beginning of this year, the stock soared by 30.7 per cent and outpaced the sector of S&P TSX Integrated Oil & Gas Index which dipped by two per cent in comparison.

Compared to a net loss of C$ 3.5 billion in Q1 2020, Suncor posted net earnings of C$ 821 million.

10. K-Bro Linen Inc. (TSX:KBL)

The processor of healthcare and hospitality laundry, K-Bro Linen posted record healthcare revenue in Q1 2021 amid the ongoing coronavirus pandemic. The consolidated healthcare revenue increased by 22.9 per cent YoY. In the same period, the net earnings rose to C$ 1.6 million, compared to a net loss of C$ 3.4 million.

The company pays a monthly dividend of C$ 0.10 per unit to its shareholders and the scrips were priced at C$ 43.07 apiece at market close on May 28. The stock of K-Bro Linen gave returns of 16.5 per cent in the past three months and 11.5 per cent in six months.

11. Russel Metals Inc. (TSX:RUS)

The company is one of the largest metal distributors in North America and operates through three metals distribution segments, including energy products. In April, Russel Metals announced Marubeni-Itochu Tubulars America Inc. to combine their Canadian line pipe businesses and their partnership will broaden the product mix.

The RUS stock had a stellar run in the past year and soared by 123 per cent. The shares closed at C$ 33.03, about three per cent lower than the 52-week high of C$ 34 on May 25, 2021.

In Q1 2021, the earnings per share rose to C$ 1.29 compared to a C$ 0.14 loss per shares in Q4 2020.

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12. Canadian Pacific Railway Limited (TSX:CP)

One of the largest railway companies in North America, Canadian Pacific operates on 12,500 miles of track in the US and Canada. Its market cap is a whopping C$ 65.4 billion and offers 36.5 per cent ROE.

The bluechip company reported solid first-quarter results and in 2021, it hopes to achieve double-digit adjusted diluted EPS growth relative to C$ 17.67 in 2020. In Q1 2021, the diluted EPS increased to C$ 4.50 from C$ 2.98 in Q1 2020.

CP share prices jumped by 6.4 per cent in the past one month and were priced at C$ 98.1 per unit on Friday, May 28.

13. Bank of Nova Scotia (TSX:BNS)

This bluechip bank stock will likely gain momentum once it releases the second-quarter earnings report on June 1, 2021. During the intraday trading on Friday, May 28, the shares spiked by 0.41 per cent and had closed at C$ 81.32 per share. On the same day, it achieved a 52-week high of C$ 81.5.

Since the big Canadian banks have posted strong second-quarter results, experts believe that BNS may also deliver solid results. In the first quarter, the bank had posted a strong net income of C$ 2,398 million.

In the past week, the stock surged by about three per cent and in the last year, the growth was 47 per cent.

14. ONEX Corporation (TSX:ONEX)

ONEX is an asset management firm and offers a variety of services to its clients. It is also the owner of WestJet Airlines. On May 13, the company completed the sale of 10 million shares of JELD-WEN Holding Inc. and the gross proceeds amounted to approximately US$ 288 million.

The S&P TSX Asset Management and Custody Banks Index plunged by about two per cent in the past year. However, the ONEX stock outperformed it by surging 35.7 per cent in the same period.
Before the market close on May 28, the share prices climbed to a 52-week high of C$ 89.09, before closing at C$ 88.51 per piece.

ONEX reported total net earnings of US$ 472 million and nearly had US$ 910 million as cash and near-cash in the first quarter of 2021.

15. Clairvest Group Inc. (TSX:CVG)

The equity investment firm is growing rapidly. Recently, NovaSource Power Services portfolio company of Clairvest, announced the acquisition and corresponding merger with First Solar Inc. to become the world's largest solar operations and maintenance provider. Such moves will benefit the equity investment firm in future and could drive its growth.

The shares were priced at C$ 63.5 per piece at market close on May 28 and surged by 55 per cent in the past year.

In the past three years, the company's dividend grew by 74.4 per cent and it is distributed annually by the company amounting to C$ 0.1 per piece.

Please note: The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view. The reference data in this article has been partly sourced from EODHD/Others.