The Canadian Stock Market, or TSX, may not be as famous as the New York Stock Exchange or Nasdaq, but that doesn’t mean it isn’t full of rich investment opportunities. In fact, we believe it is full of diamonds in the rough stock investment opportunities precisely because it isn’t the most famous market available. It is also on a major upswing in 2021, with the Toronto Stock Market Index as a whole hitting a record high this month, March 2021.
Now is the time to invest.
5G is still considered to be relatively new technology, and the options in Canada to access it are slim. American investors and Canadian investors alike have been looking more heavily to the US markets for stocks in this sector, but Telus is a great option if you want to buy into some growing stocks on Canadian soil. The company is a national Canadian telecommunications group that offers products and services relating to entertainment, internet access and healthcare. They are also one of the Big 3 telecom companies located in Canada, and their stocks come with the best dividend in the sector. We have included it on this list because of the dividend and the growth potential since it is just stepping into the 5G market.
Savaria is a Canadian company that focuses on assisting ageing senior citizens with products like home elevators, ceiling lifts, wheelchair lifts, van conversions and more. While the total percentage of Canada's population over the age of 65 today is roughly 15%, it is estimated that 23% of the population will be 65 or older by 2030. This fact alone makes companies that focus on partnering with seniors promising to invest in. While Savaria’s performance has been variable over the past years, it has been steadily growing and is looking promising for the near future, hence its inclusion on this list.
Shopify is included on this list for the sole reason that it has been the top-performing stock for several years. The company is an e-commerce platform that supports small or medium-sized businesses worldwide, and it had already returned over 4,500% to investors as of 2015. While the growth has slowed slightly over the past 3 years, it is still the best performing stock and sees promising company growth.
Agnico Eagle Mines Ltd is an established Canadian gold mining company with mines located primarily in Canada, Mexico and Finland. The company’s stocks are on a five-year dividend growth streak, and investors have seen an average of just over 11% return each year for the last 20 years. The company’s performance is solid, and gold is a pretty reliable commodity to invest in.
While airlines have taken a massive hit over the past year with the global Covid-19 pandemic and their stocks have understandably suffered, the industry as a whole is definitely here to stay. Air Canada is the country’s largest carrier, and as the national airline, the government is invested in keeping the company alive and profitable. Stock prices are a steal right now since revenue declined 89% last year and total passengers travelling were down a whopping 96%. Looking at the fact that stock prices are sure to recover, now is the perfect time to buy.
Dollarama is Canada’s biggest dollar store, and especially at a time when money is tight and unemployment is high, stores like Dollarama thrive. The company is planning on expanding by adding 400 more stores in Canada over the next seven years and expanding their Latin American counterpart Dollarcity as well. The stocks are affordable right now but are almost sure to grow in the future.
TFI International is an international trucking and logistics company with four segments. It has more than 31,000 employees and 500 terminals on the continent, with a base in Canada and the US. The stock plummeted along with the rest in March 2020 but has risen 265% in the past year since that low point. During the pandemic the company acquired a large number of struggling transportation companies and has handled the crisis strategically and smartly. Their business tenacity and huge growth make them an impressive investment opportunity.
While bank stocks tend to be solid and steady, unlike the growth stocks that make up the majority of this list, Royal Bank of Canada has been growing quickly over the last five years. They are one of the largest banks in Canada and have established operations in more than 40 countries. They offer a dividend that is around 3.8% that has been growing steadily for the past 8 years and are just a smart investment overall for Canadian and American investors.
Goeasy Ltd has a growing presence in the alternative lending market. They have issued more than $5 billion in loans since their creation and have helped 60% of their customers to increase their credit scores within less than a year of borrowing funds. Their revenue has been growing steadily since 2001, and even doubled revenue between 2015 and 2020. The stocks stayed strong even during the pandemic, which is why we feel confident recommending them to you. These stocks will help balance out some of the more variable investments in your portfolio.
Last but not least, we are recommending a new Canadian IPO called Nuvei. The business operates in the fin-tech industry and supports online and in-store transactions. This industry has been growing quickly over the last few years and is projected to keep doing so in the coming years. Even though Nuvei only went public in August 2020, their share price has increased by 36% in the last five months of trading. We believe they will continue to grow, and you will see a fast return on your investment.
While investing in the stock market can be confusing and difficult for anyone, this is especially true if you are new to trading stocks. While foreign stocks can bring good growth opportunities, you don’t necessarily have to look outside of Canada to find a diamond in the rough. Remitbee can help assist your stock trading by converting your CAD to USD or other currencies. Our competitive rates can save you thousands in the long run.