CSU:CC - Bears in the Market: Why it's the Best Time for Canadians to Diversify
2023-12-20 21:45:00 ET
Because of the stock market’s terrible performance in 2022, many investors were worried about what might happen in 2023. In fact, many investors carried bearish sentiments through the year, thinking the worst had yet to come. However, it’s during times like these that investors should take advantage of and diversify their portfolios . In this article, I’ll discuss three top stocks that I would suggest that Canadians consider buying today.
One of the best stocks around
If there’s one stock that Canadians should take advantage of whenever they can, it’s Constellation Software ( TSX:CSU ). This stock has been one of the best performers on the TSX since its initial public offering. In fact, since 2006, Constellation Software stock has gained about 17,500%! Very few companies have been able to generate similar gains while offering such a low-risk profile.
If you’ve never heard of Constellation Software, that’s likely because the company doesn’t operate a consumer-facing business. Instead, it operates in the background, acquiring vertical market software businesses. Upon acquisition , Constellation Software provides the resources necessary to turn those businesses into exceptional business units. The company’s strategy has proven to be very successful so far, and I’m very confident that it will continue to grow in the coming years.
One of my favourite dividend stocks
Fortis ( TSX:FTS ) is another stock that Canadians should take advantage of when opportunities arise. This is a large multinational utility company. Fortis provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean. In 2022, Fortis reported an annual revenue of about $11 billion.
Fortis is very well known within the financial space for its outstanding dividend history. With a 50-year dividend-growth streak, that’s currently the second-longest streak of its kind in Canada. Even more impressively, Fortis has already announced its plans to continue growing its dividend through to 2028 at a rate of 4% to 6%. If you’re interested in a dependable stock that shouldn’t see major slowdowns during a recession, then Fortis may be one to consider.
A solid stock for your portfolio
Finally, investors should consider Bank of Nova Scotia ( TSX:BNS ) during downturns. In my opinion, this stock isn’t immune to recessions and market slowdowns. However, because of its positioning within one of Canada’s most dominant industries, I’m very confident that it has the ability to recover after prolonged periods of economic uncertainty. Bank of Nova Scotia is one of the Big Five. It sits among Canada’s top five banks in terms of assets under management, market cap, and revenue.
Just like Fortis, Bank of Nova Scotia is a tremendous dividend stock. This company has been paying shareholders a dividend since 1833. For those keeping track, that represents 190 years of continued dividend distributions. Considering how many downturns have occurred over that period, and the fact that Bank of Nova Scotia has managed to maintain its dividend payments, I would be very comfortable holding this stock in my portfolio.
The post Bears in the Market: Why it’s the Best Time for Canadians to Diversify appeared first on The Motley Fool Canada .
Fool contributor Jed Lloren has positions in Bank Of Nova Scotia, Constellation Software, and Fortis. The Motley Fool recommends Bank Of Nova Scotia, Constellation Software, and Fortis. The Motley Fool has a disclosure policy .
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