CSU:CC - Beginners: 4 TSX Stocks I'd Buy Right Away!
2024-06-25 15:30:00 ET
Are you looking to invest but have no idea where to start? Today, we’re going to get into the details surrounding four TSX stocks investors can pick up right away. Ones that investors can pick up with a lot of confidence and remain confident investing in them not just in 2024, but for decades.
So, with that, let’s look at why investors can consider Brookfield Renewable Partners ( TSX:BEP.UN ), Constellation Software ( TSX:CSU ), Royal Bank of Canada ( TSX:RY ), and Granite REIT ( TSX:GRT.UN ).
BEP stock
BEP stock is a prominent player in the renewable energy sector, which has been experiencing significant growth driven by global efforts to combat climate change. BEP’s diverse portfolio of hydroelectric, wind, solar, and storage facilities positions it well to benefit from the ongoing transition to renewable energy.
As of the most recent earnings report, BEP reported revenue of US$1.13 billion for the first quarter (Q1) of 2024. This was a 14% increase year over year and a net income of US$106 million. The company’s strong financial performance and commitment to expanding its renewable energy capacity make it an attractive long-term investment.
The renewable energy sector is expected to grow at a compound annual growth rate (CAGR) of 8.3% from 2022 to 2030. This provides a favourable outlook for BEP. Add in its dividend yield at 5.53%, and you’ve got a long-term winner.
CSU stock
Next up, we have CSU stock. It operates in the technology sector, specifically focusing on acquiring and managing vertical market software businesses. CSU has demonstrated a consistent track record of strong financial performance. Revenue reached $1.54 billion in Q1 2024, up 31% from the previous year.
The company’s net income for the same period was $206 million, highlighting its profitability. The technology sector continues to show robust growth, driven by digital transformation and increasing reliance on software solutions across industries.
CSU’s strategy of acquiring niche software businesses ensures a diversified revenue stream and reduces risk. This makes it a compelling choice for long-term investors. While on the expensive side, investors will quickly learn it’s worth it.
RBC stock
Then we have RY stock, a cornerstone of the financial sector, providing a wide range of banking and financial services. RY’s strong market position and diversified business model have enabled it to maintain steady growth and resilience even during economic downturns.
In Q2 2024, RY reported a net income of $3.8 billion, a 7% increase from the previous year. The bank’s return on equity was 16.7%, demonstrating its efficiency in generating profits. The financial sector, particularly in Canada, is expected to remain stable. It should see moderate growth driven by economic recovery and increasing demand for financial services.
RY’s solid financial performance and strategic initiatives position it well for long-term success. Again, add in a dividend yield of 3.91%, and it is pretty much always a good time to buy.
Granite REIT
Finally, if you want even more dividend income, consider real estate investment trust (REIT) Granite REIT. Granite focuses on industrial properties, including warehouses and logistics centres, which have seen heightened demand due to the e-commerce boom.
Granite’s portfolio is geographically diversified, with properties in North America and Europe. For Q1 2024, GRU.UN reported revenue of $123 million, a 10% increase year over year, and a net income of $83 million. The industrial real estate sector is expected to continue growing. This is driven by the need for modern logistics facilities to support e-commerce and supply chain operations.
Granite’s strategic acquisitions and development projects ensure a steady income stream and growth potential. This makes it a solid investment for the long term. Again, we have a stable dividend yield of 4.81% for investors to consider. Altogether, you won’t regret any of these buys on the TSX today.
The post Beginners: 4 TSX Stocks I’d Buy Right Away! appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners and Royal Bank Of Canada. The Motley Fool recommends Brookfield Renewable Partners, Constellation Software, and Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy .
2024