Wed. Sep 27th, 2023
    Top Diverse Canadian Stocks for Long-term Investment

    When constructing an investment portfolio, it’s important to start with a variety of Canadian stocks that span different sectors, industries, and market caps. As a new investor, diversification can help minimize risk and provide potential for long-term growth. Here are four diverse Canadian stocks worth considering for a long-term investment strategy.

    Firstly, Constellation Software (TSX:CSU) is an ideal portfolio anchor, although its share price may seem steep at around $2,800. Despite the higher cost, Constellation has delivered exceptional total returns of 27% annually over the past five years. The company focuses on acquiring and operating small niche software businesses, reinvesting its cash into further acquisitions. With its strong management team, Constellation is dedicated to compounding long-term shareholder wealth.

    If Constellation Software is out of reach, two of its spin-out companies, and Lumine Group, offer more affordable options. These companies present opportunities for growth in their respective markets.

    Moving on to dividend stocks, Brookfield Asset Management (TSX:BAM) and Brookfield Infrastructure Partners (TSX:BIP.UN) are both attractive choices for income investors in Canada. Brookfield Asset Management manages a vast portfolio of assets worth three-quarters of a trillion dollars globally, earning fees and a share in the profits. With plans to distribute 90% of its cash flows, BAM offers steady growth and a current yield of 3.56%.

    Brookfield Infrastructure Partners is one of the world’s largest diversified infrastructure businesses, boasting assets such as railroads, ports, and data centers. These assets generate stable and predictable income, making BIP a robust investment option. With its ability to capitalize on counter-cyclical opportunities, BIP has a track record of consistent dividend growth. Currently yielding 4.8% and trading near its lowest valuation in five years, this dividend stock exhibits strong potential.

    Lastly, Alimentation Couche-Tard (TSX:ATD) represents an affordable growth stock that has delivered impressive returns, with a 136% increase in its stock price over the past five years. Operating a network of convenience stores and gas stations worldwide, Couche-Tard has capitalized on its brand, operational expertise, and strategic acquisitions to fuel growth. With a price-to-earnings ratio of 17, this stock is reasonably valued.

    In conclusion, diversifying your investment portfolio with a mix of Canadian stocks can be a smart approach for long-term success. Consider Constellation Software, Brookfield Asset Management, Brookfield Infrastructure Partners, and Alimentation Couche-Tard as viable options for investing. Each offers unique advantages, whether it’s growth potential, dividend income, or a combination of both.

    – Constellation Software investor relations
    – Brookfield Asset Management investor relations
    – Brookfield Infrastructure Partners investor relations
    – Alimentation Couche-Tard investor relations