The market may be full of volatility right now, but it doesn’t mean there aren’t great opportunities for investors to capitalize on. In fact, some of the top Canadian stocks to buy can be purchased at discounted rates.
Top Canadian stocks: Why buy now?
Warren Buffet is known for many iconic quotes. But perhaps the best piece of advice from the Oracle of Omaha is when he told investors to be fearful when others are greedy and to be greedy only when others are fearful.
As it stands right now, the market is definitely turning more towards fear following several sharp downturn sessions. This means that those top Canadian stocks to buy are on sale, and it might be time to be a little greedy.
Here are a few of those top Canadian stocks for every investor to consider now.
It’s all about the staples
Stocks known as consumer staples provide essential products and services to consumers. And it is those stocks that investors are currently seeking shelter in.
They also represent some of the top Canadian stocks to consider right now. One such example is Metro (TSX:MRU).
Metro is one of the largest grocers in Canada, with an impressive portfolio of grocery and pharmacy locations. Most of those stores are located in Quebec and Ontario, under various banners.
Grocers like Metro provide an essential service to consumers, translating into a reliable revenue stream that leaves room for growth initiatives as well as paying out a quarterly dividend.
As of the time of writing, Metro’s dividend pays out a yield of 1.5%. Prospective investors should also note that Metro provides investors with annual upticks to that dividend.
In fact, Metro has continued that annual tradition for well over a decade without fail. This makes the grocer one of the top Canadian stocks to consider in this market.
Speaking of defensive stocks
Another great defensive option to consider in this market is Fortis (TSX:FTS). Fortis is a utility stock, with operating regions in the U.S., Canada, and the Caribbean.
One of the many appeals of investing in a utility is the stability that it provides. Utilities provide a necessary service to their customers. And unlike traditional retailers, there’s no option for those customers to trade down to a more frugal option.
That utility service is often bound by long-term regulated contracts that span decades. This means that Fortis continues to generate a reliable and recurring revenue stream irrespective of how the market fares.
And like Metro, that revenue stream allows Fortis to invest in growth and pay out a very handsome quarterly dividend. As of the time of writing, the yield on that dividend works out to 3.8%.
Perhaps best of all, Fortis has provided annual upticks to that dividend for over 50 consecutive years without fail. This makes Fortis one of the must-have top Canadian stocks to own right now.
Can you buy these top Canadian stocks for only $2,000?
One of the biggest misconceptions about investing is that you need tens of thousands at once to build your portfolio.
Even with a modest $2,000 to start, investors can kickstart a well-diversified portfolio by starting with both stocks noted above. Prospective investors should also note that starting to invest early and reinvesting those dividends can provide further growth over the longer term.
In my opinion, one or both stocks should form part of a well-diversified portfolio.
Buy them, hold them, and watch your portfolio (and future income) grow.