5 top Canadian stocks to hold in your portfolio 

Summary

  • Canadian transport stocks could be the best passive income picks of the year, guided by consistent growth trajectories. 
  • A leading Canadian e-commerce firm has delivered remarkable equity growth despite the ongoing pandemic.
  • An air cargo company has become a lifeline for Canadians during the prolonged lockdown and delivered unprecedented freight volume.   

The TSX/Composite delivered 38 per cent returns in the last five years. But amid the COVID-19 outbreak, the Canadian stock market has gone through massive volatility. Retail investors have also fallen for a meme-driven frenzy and lost their hard-earned savings. 

If you are looking for a long-term investment, here are a few Toronto Stock Exchange-listed stocks to explore:

1. Canadian Pacific Railway Ltd. (TSX: CP)

Canadian Pacific Railways’ stock is trading at US$ 91.53 apiece, and it holds a market cap of C$ 61.03 billion. The transportation stock has recorded over a 22 per cent surge in one year, led by the record freight volume.

It has a notable one-year return of 57 per cent and a dividend of C$ 0.95 apiece for the current quarter. Its top line was up 15 year-over-year (YoY) to C$ 2.05 billion in the second quarter of 2021.

It is down by over eight per cent against its one-year high of C$ 100 apiece (Set on June 02, 2021) following its share split announcement in May this year.  

The rail firm pays quarterly dividends of C$ 0.19 per share to its stockholders. Its share price has improved by nearly four per cent year-to-date (YTD).

2. Shopify Inc. (TSX:SHOP)

The Canadian e-commerce industry has thrived amid the pandemic-led shutdowns. Shopify has emerged as one of the top equity gainers in this digital shopping wave. Its stock soared over 46 per cent in the last nine months. It recorded an all-time high of C$ 2,014.35 apiece on July 22, 2021. 

It has robust earnings per share of C$ 16.56, and a market cap of C$ 215 billion. The online market aggregator’s stock is up around 32 per cent in 2021. 

Shopify posted a gross profit of C$ 627 million in Q2 2021, up 66 per cent YoY. The e-commerce firm’s revenue was up 57 per cent YoY to C$ 1.19 billion in Q2 2021. Its subscription revenue bloomed by 70 per cent YoY. 

3. Canadian Natural Resources Limited (TSX:CNQ)

The energy-related natural resource explorer has a market cap of C$ 49.21 billion. Its current share price is C$ 41.49 apiece. The company offers a quarterly dividend of C$ 0.47 per share and maintains an impressive dividend yield of 4.53 per cent.

This energy stock has registered 67 per cent growth in one year and returned almost 36 per cent YTD. However, it is down 10.5 per cent against its 52-week high of C$ 46.36 apiece (June 15, 2021).

In the first quarter of 2021, Canadian Natural Resources Ltd posted a surge of nearly C$ 1.04 billion on a quarter-over-quarter (QoQ) basis. 

4. Cargojet Inc. (TSX:CJT)

The air cargo company has a market cap of C$ 3.39 billion, and it distributes a dividend of C$ 0.26 apiece to its shareholders quarterly. Its previous closing share price was C$ 196.1 on Thursday, July 29.

Its one-year return stands at 22 per cent, surpassing S&P/TSX Transportation Index that has gained nearly six per cent relatively. The stock is up seven per cent in the last one month.

The air logistics company reported revenues of C$ 160.3 million for the first quarter of 2021, up from C$ 123 million recorded a year ago.

5. Canadian National Railway Company (TSX:CNR)

Canadian National Railway is the largest Canadian rail firm with a market cap of C$ 94.80 billion. Its shares are trading at C$ 133.73 apiece. The company is paying a dividend of 0.615 per share for the current quarter. 

The stock has traded with a marginal rise of two per cent MTD as the company awaits the final regulatory nod in the Kanas City Southern merger. 

It is slightly down by four per cent this year. However, the company reported noticeable earnings for the latest quarter. Its operating income was up 79 per cent YoY.

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