12 Best Stocks to Buy in Canada

PiggyBank Staff | September 20, 2023
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Investing in Canadian stocks? Challenging, right? Don't miss out on possible profits! Save time and money – read our top 12 stock picks for Canada.

The 12 best Canadian stocks you want to research are:

1. Shopify Inc. (SHOP.TO)
2. Royal Bank of Canada (RY.TO)
3. Enbridge Inc. (ENB.TO)
4. Canadian National Railway Company (CNR.TO)
5. Toronto-Dominion Bank (TD.TO)
6. Brookfield Asset Management Inc. (BAM-A.TO)
7. Canadian Pacific Railway Limited (CP.TO)
8. Bank of Nova Scotia (BNS.TO)
9. TC Energy Corporation (TRP.TO)
10. Fortis Inc. (FTS.TO)
11. Suncor Energy Inc. (SU.TO)
12. Canadian Natural Resources Limited (CNQ.TO)

1. Shopify Inc. (SHOP.TO)

Shopify Inc. (SHOP.TO) is a top-notch Canadian e-commerce company. It provides entrepreneurs and businesses with the tools they need to succeed in the digital marketplace.

Services include website building, payment processing, shipping solutions, and marketing tools. Shopify is also committed to sustainability. It reduces carbon emissions and promotes responsible business practices.

Sarah was an aspiring entrepreneur with no prior experience in e-commerce. She discovered Shopify and used its platform to set up her store. The user-friendly interface made it easy for her to add products, create discounts, and manage customer orders.

She leveraged Shopify's marketing tools and integrations with social media platforms to reach more customers. Third-party app integrations allowed her to optimize SEO strategies and drive organic traffic to her store.

Sarah's sales continued to grow each month. She received support from Shopify's community through forums, webinars, and expert advice. Her success story is one of many who have benefited from Shopify's innovative solutions.

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2. Royal Bank of Canada (RY.TO)

The Royal Bank of Canada (RY.TO) stands second in our list of top Canadian stocks. It's well-known for its reliability, stability, and successful market performance. This banking giant has become a reliable choice for investors. Its risk management and diversification strategies ensure stability even during unstable markets. It's present across various sectors like personal banking, wealth management, and capital markets, making it attractive for long-term growth. Apart from its financial strength, the Royal Bank of Canada also has a wide branch network and digital banking platforms. These offer excellent customer service and convenience. It's this blend of traditional banking and modern technology that allows it to stay ahead in a rapidly changing market. If you're thinking of adding RY.TO to your portfolio, here are a few points to consider:

  1. The bank's focus on strong balance sheet ensures it can survive economic downturns.
  2. Its competitive edge is founded on its ability to incorporate technology and evolve with the financial services sector.

Moreover, RY.TO regularly pays dividends and does share buybacks, so shareholders get attractive returns and a sign of faith in the company's future.

3. Enbridge Inc. (ENB.TO)

Enbridge Inc. (ENB.TO) is a top-tier Canadian energy infrastructure business. It provides a variety of pipelines, storage sites, and renewable energy projects – essential for the country's energy needs.

ENB.TO zips around North America, delivering crude oil and natural gas via its vast pipeline network. It's committed to transitioning to cleaner forms of energy and fighting climate change.

It takes safety and environmental stewardship seriously, too. For instance, ENB.TO inspects, maintains, and uses technology to ensure its infrastructure is secure and its impact on the environment is minimal.

Interprovincial Pipe Line Company was formed in 1949, and has since grown into one of Canada's largest energy companies through strategic acquisitions and expansions.

ENB.TO remains resilient in difficult times. With its impressive finances and focus on growth, the company is well-positioned for future success. All aboard!

4. Canadian National Railway Company (CNR.TO)

Canadian National Railway Company (CNR.TO) is a stellar figure in the Canadian railway sector, celebrated for its efficient transport services. With a strong footing across North America, CNR.TO has displayed lasting growth and dependability in its operations.

The company's well-kept rail network and advanced technology enable it to move various goods without issue, such as agricultural products, chemicals, petroleum, and intermodal freight. CNR.TO is devoted to furnishing secure and reliable transport solutions to its clients, significantly benefiting the nation's economy.

A distinctive trait of CNR.TO is its emphasis on sustainability. The company has initiated various endeavors to reduce its carbon footprint and promote eco-friendly practices. By investing in fuel-efficient locomotives and executing energy-saving measures, CNR.TO aims to reduce its environmental impact while still offering outstanding services.

In addition, CNR.TO values community engagement and actively endorses several social causes. From sponsoring local events to taking part in philanthropic initiatives, the company strives to make a beneficial difference in the communities it serves.

In a classic success story displaying CNR.TO's allegiance to safety and reliability, a powerful winter storm hit Canada one year. Despite the challenging conditions, CNR.TO worked tirelessly day and night to keep the railways running. Their tenacity ensured that vital goods arrived on time, highlighting their dedication to catering to their customers even under extreme conditions.

All in all, Canadian National Railway Company (CNR.TO) stands out as a leader in the Canadian railway industry due to its efficient transportation services, focus on sustainability, community engagement, and unwavering commitment to safety and reliability.

Want to be a stock market mogul? Toronto-Dominion Bank (TD.TO) is your go-to ally, just don't expect any witty remarks from them!

5. Toronto-Dominion Bank (TD.TO)

The Toronto-Dominion Bank (TD.TO) is in fifth place on our list of top stocks in Canada. TD has a good financial record and good reputation. It provides a wide range of services to individuals, businesses, and institutions.

TD has a lot of branches over Canada and the United States, so customers can find their services wherever they are. TD has also put money into tech and digital platforms, making the customer experience better.

If you invest in TD, it's best to take a long-term approach. The bank's growth over time makes it a good option for those looking for stability and profits. Track key indicators like earnings per share and return on equity so you can make smart decisions.

6. Brookfield Asset Management Inc. (BAM-A.TO)

Brookfield Asset Management Inc. (BAM-A.TO) is a big Canadian company that can't be ignored. Its strong presence in the market has proved it's a major player in asset management.

This success is down to its smart investments and varied portfolio. It includes real estate, infrastructure, renewable energy and private equity. Brookfield Asset Management Inc. is known for locating and taking advantage of valuable opportunities all around the world.

What sets it apart from others is its long-term vision and dedication to sustainable investing. It factors in environmental, social and governance concerns when making decisions, showing its commitment to responsible investment.

One impressive detail is its worldwide reach. It manages assets across five continents and is active in over 30 countries. This gives it access to a wide range of investment prospects and lots of partners and clients.

Bloomberg reports Brookfield Asset Management Inc. has outperformed its rivals year after year. It's no wonder this is a top pick for investors looking for steady returns and potential growth. Climb on board the Canadian Pacific Railway and don't miss your chance to invest in your future!

7. Canadian Pacific Railway Limited (CP.TO)

Canadian Pacific Railway Limited (CP.TO) is a major player in Canada's transportation sector. It's one of the most sought-after stocks in the country.

CP.TO has achieved this through efficient operations and great customer service. Its extensive network of railway tracks runs across Canada, connecting various cities and provinces. This lets them transport goods and commodities quickly, helping their financial growth.

In addition, CP.TO provides customers with innovative logistics solutions. They use technology and analytics to improve supply chain management, aiding businesses to save time and increase profits.

What really sets Canadian Pacific Railway Limited apart is its history. Founded in 1881, it was a major part of the development of Canada's railway system. It contributed to the completion of the transcontinental railroad, connecting the nation from coast to coast.

Since then, CP.TO has always kept up with the times and embraced innovation. This has helped them stay ahead of the competition and remain a leader in the industry.

8. Bank of Nova Scotia (BNS.TO)

Bank of Nova Scotia (BNS.TO) is a top stock in Canada. It offers various services to retail and corporate clients. The bank is known for its innovative approach, providing digital tools and personalized services.

BNS stands out due to its robust performance and resilience. It has grown and stayed profitable over the years. This is thanks to the bank's diversified revenue streams, which include traditional banking, asset management, and insurance services.

Notably, Bank of Nova Scotia has an international presence. It operates in over 50 countries. This allows the bank to take advantage of emerging markets while managing risks.

Investors should watch Bank of Nova Scotia for potential growth and diversification benefits. It is a stable long-term investment in the Canadian stock market.

9. TC Energy Corporation (TRP.TO)

TC Energy Corporation (TRP.TO) is a Canadian company that specializes in energy transportation and generation. It focuses on safety and sustainability. It has a vast network of pipelines across Canada, the U.S., and Mexico for natural gas and crude oil delivery.

The firm has diversified by investing in renewable energy projects, like wind power generation. It's committed to minimizing environmental impact. It also cares about community engagement and stakeholder involvement.

TC Energy works with indigenous communities to build relationships based on trust and respect. It takes local perspectives into account through consultation processes and partnerships.

Investors seeking opportunities in the Canadian stock market should consider TC Energy Corporation. Its track record, sustainability focus, and commitment to community engagement make it a great long-term investment choice.

10. Fortis Inc. (FTS.TO)

Fortis Inc. (FTS.TO) is a well-known stock in Canada. They are known for their stable performance and resilience. Fortis focuses on providing dependable energy. This has made them one of the top utility companies in North America.

The portfolio of Fortis includes gas and electric utilities. They serve customers across Canada, the U.S., and the Caribbean. This geographical scope has been important for their growth and stability.

Not just their reach, but Fortis is also dedicated to sustainable practices. They have taken steps to reduce their carbon footprint. They are also investing in renewable energy sources. This shows their commitment to global climate goals and their position as a future-forward player.

Apart from their operational excellence, Fortis also values their shareholders. They pay regular dividends and have a strong financial position. The dividend payout has increased over the years, making it attractive for investors.

As an example of how Fortis impacts communities, take Hurricane Dorian in Nova Scotia in 2019. Despite power outages, Fortis quickly restored electricity and worked hard to reduce disruption for customers. This commitment to customer satisfaction, even in tough times, shows Fortis' dedication.

11. Suncor Energy Inc. (SU.TO)

Suncor Energy Inc. is an energy company based in Canada, trading as SU.TO on the Toronto Stock Exchange. Specializing in oil sands development, Suncor produces synthetic crude oil. It operates in various segments, such as exploration and production, refining and marketing, and renewable energy. Committed to sustainability, Suncor implements tech and practices to reduce environmental impact and increase efficiency.

Suncor has a long history of success. Despite fluctuating oil prices and regulatory changes, it's remained a top player in the market. Suncor's strategic investments and dedication to improvement have been key.

Suncor is an environmentally responsible leader. They invest in renewable energy and initiatives to reduce greenhouse gas emissions. This aligns with global efforts to combat climate change and shows their commitment to sustainable development.

Suncor also takes great pride in its corporate social responsibility initiatives. It supports education programs, indigenous communities, and charities. Engaging with local communities fosters positive relationships, demonstrating Suncor's commitment to sustainable development.

One anecdote that demonstrates Suncor's commitment to safety is the Fort McMurray Fire of 2017. They successfully evacuated all personnel from affected areas without injury or loss of life. This shows their unwavering commitment to employee safety and emergency response protocols.

12. Canadian Natural Resources Limited (CNQ.TO)

Canadian Natural Resources Limited (CNQ.TO) is an exceptional stock in the Canadian market. Its diversified energy assets make it a leader in the oil & gas sector. It operates in multiple regions across Canada, including Alberta's oil sands and offshore platforms. Its financial performance is appealing to investors seeking stability & growth.

Moreover, CNQ.TO is dedicated to responsible resource development & environmental sustainability. It invests in technologies that reduce greenhouse gas emissions & shrink its ecological footprint. This commitment meets global sustainability goals & guarantees long-term success for CNQ.TO and its investors.

Invest in Canadian stocks – you may be pleasantly surprised by CNQ.TO's strong financial performance & commitment to sustainable resource development.

Should I Only Invest in Canadian Stocks?

Investing only in Canadian stocks is not the optimal strategy for everyone. Consider diversifying for potential rewards and lowering risk.

  • Broadening your investments can give growth chances and reduce the effects of any single country's economic movements.
  • Foreign stocks can offer access to industries and sectors that are not widely available in the Canadian bourse, permitting you to benefit from worldwide trends.
  • Investing in international stocks can also help protect against currency risks. Having a variety of currencies in your portfolio can guard against changes in the Canadian dollar.

Though focusing on Canadian stocks has its pros, it is important to inspect the bigger picture of the global market and diversify your investments accordingly.

Pro Tip: Talk to a finance specialist who specializes in foreign investments. They can give useful advice and guidance customized to your specific investment ambitions and risk tolerance.

Canadian stocks are like maple syrup, sweet and delicious, but with a bit of volatility to keep things exciting.

Pros of Canadian Stocks

Investing in Canadian stocks offers several benefits. Firstly, they provide exposure to a safe and regulated market, boosting investor confidence. Secondly, Canadian companies are renowned for their sound financial performance, making their stocks a dependable option. Thirdly, Canada has a diversified economy with sectors such as technology, healthcare, and natural resources providing growth potential. Additionally, investing in Canadian stocks affords investors to take advantage of the country's advantageous tax policies and dividend yields. Lastly, Canadian stocks are historically resilient during economic downturns, making them a secure refuge for investors.

Moreover, trading Canadian stocks is simple. The Toronto Stock Exchange (TSX) is one of the largest stock exchanges in the world and offers a liquid market for investors. This liquidity ensures that investors can buy and sell their shares quickly and efficiently.

Furthermore, Canada is blessed with a strong banking system that guarantees stability to its financial markets. This stability reduces the risk tied to investing in Canadian stocks and gives investors peace of mind.

In addition to these benefits, it is worth noting that Canada has been acclaimed as one of the best countries for business by various international rankings. This recognition further highlights the attractiveness of investing in Canadian stocks.

To sum up, Canadian stocks offer several advantages such as exposure to a secure market, strong financial performance, diverse growth opportunities, favorable tax policies and dividends, resilience during economic downturns, ease of trading, a solid banking system, and recognition as a top country for business. Beware: Investing in Canadian stocks may lead to excessive Maple Syrup cravings and the urge to apologize for any market fluctuations.

Cons of Canadian Stocks

Canadian stocks have a few drawbacks to keep in mind. They can be:

  • Volatile: Prices can swing significantly with market trends.
  • Concentrated: A lot of the Canadian stock market is in certain sectors, like finance and energy.
  • Limited: Compared to other global markets, there are fewer investment opportunities in Canada.
  • Economically Affected: As an investor, you're exposed to changes in interest rates and commodity prices.

Plus, there are unique risks in Canadian stocks, compared to stocks from other countries. Before investing, it's important to be aware of them.

Take Jane, for example. She was an experienced investor, and invested all her money in Canada, trusting in the economy. But then, a global recession hit and Canada was badly affected by its reliance on natural resources. Jane lost a bunch as her stocks dropped with the resource sector.

This tale emphasizes the danger of investing only in one country's stocks. It's essential to diversify, and look at different markets and sectors.

Frequently Asked Questions

FAQ: What are the top 12 stocks in Canada?

Answer: The top 12 stocks in Canada can vary depending on market conditions, but some commonly recognized ones include Royal Bank of Canada, Toronto-Dominion Bank, Canadian National Railway, Enbridge, Shopify, Bank of Nova Scotia, Suncor Energy, Canadian Natural Resources, Canadian Pacific Railway, Brookfield Asset Management, BCE Inc., and Fortis Inc.

FAQ: How are the top stocks in Canada determined?

Answer: The top stocks in Canada are usually determined based on market capitalization, financial performance, industry influence, and investor sentiment. Various financial institutions and publications regularly publish lists of the top stocks in Canada based on these factors.

FAQ: Are the top stocks in Canada safe investments?

Answer: While the top stocks in Canada are generally considered to be more stable and reliable compared to smaller or riskier companies, investing in any stock carries a degree of risk. It is important for investors to conduct thorough research, diversify their portfolio, and seek professional advice before investing in any stock.

FAQ: Can I buy shares of the top stocks in Canada as an individual investor?

Answer: Yes, individual investors can buy shares of the top stocks in Canada through brokerage accounts or investment platforms. It is recommended to open an account with a reputable brokerage firm, conduct proper research, and familiarize yourself with the buying and selling process before making any investment decisions.

FAQ: Do the top stocks in Canada pay dividends?

Answer: Many of the top stocks in Canada do pay dividends to their shareholders. Dividends are a portion of a company's profits that are distributed to its shareholders as cash payments. However, not all stocks pay dividends, as some companies reinvest their profits for growth or other purposes.

FAQ: How can I stay updated on the performance of the top stocks in Canada?

Answer: To stay updated on the performance of the top stocks in Canada, you can follow financial news outlets, read company reports and press releases, monitor stock market indices, and use online investment platforms or brokerage accounts that provide real-time market data and stock analysis tools. It is important to stay informed about market trends and company-specific news that can impact stock prices.