10 Best Companies to Invest In Canada

Do you think it is time to pack up and leave the Toronto Stock Exchange? Nobody would blame you if you did with all this uncertainty, volatility, and general chaos happening at home and abroad. Sure, you can cash out your chips and put your profits into a reliable savings account that is below the rate of inflation. Or, you can just, you know, ride the storm, find new opportunities, and add to your portfolio.

No matter where you invest, it is a tough market out there – North America, Europe, and Asia. It can be hard to navigate equities, particularly with so much uncertainty surrounding trade and fiscal and monetary policy. Despite its own problems, Canada is a quasi-safe haven destination for traders, even if growth might be anemic. There are guaranteed investment opportunities in the financial market, but you just need to know where to look. That’s why we prepared the best in a list for aspiring investors.

Here are the ten best companies to invest in for long-term returns:

1. Hydro One (TSE:H)

Hydro One is one of the best Canadian companies to invest in. In a volatile market, many investors seek refuge in a stock that provides value and will not experience double-digit gains or losses. One such stock that has successfully weathered the storm has been Hydro One. Despite the controversy when it was sold by the province of Ontario a few years ago, traders have been bullish on the utility stock since then – and why not?

Hydro One has traded mostly between $20 and $24 a share, and it offers a dividend yield of just under four percent. The company is on a solid financial footing, plus Bay Street sees a $0.35 earnings per share in its next earnings report in November.

2. Suncor Energy (TSE:SU)

If you bought Suncor Energy when the crude oil market bottomed out, then you are likely enjoying incredible returns from one of the best companies to invest in. While this stock might have added considerable gains to your portfolio in the last couple of years, the long-term potential for Suncor is what is attractive to investors.

In addition to crude, Suncor has invested in all types of energy, from natural gas to renewables. Plus, it is investing millions in infrastructure upgrades across the country. Even when there is another steep downturn in crude prices, Suncor has the ability – and solid financials – to survive.
A 4.22 percent dividend helps, too!

3. Dollarama (TSE:DOL)

There has been weakness in Dollarama stock as of late, which analysts attribute to a decline in same-store sales, uncompetitive prices, and an expansionary economy. During the recession and even in the aftermath, Dollarama was the place to go for consumers to save money on all kinds of items. As of late, however, the prices at Dollarama are comparable to other stores. Plus, the trade war has impacted the dollar store.

That said, Dollarama is still considered a value stock, serving as the second-largest retail store for products costing $4 or less. It provides a conservative 0.4 percent dividend yield, and it recently neared its all-time high of $55.

4. TD Bank (TSE:TD)

Deciding which Canadian financial institution to invest in can be difficult. For the passive investor, it is hard to determine which of the Big Five banks to park your money in. Bank of Nova Scotia, Royal Bank of Canada, Bank of Montreal, TD Bank, or the Canadian Imperial Bank of Commerce (CIBC)?
They have all their positive aspects, but TD Bank may be the best long-term pick.

With all the media hype surrounding the financials darling, Scotiabank, TD Bank has been a reliable institution. It recovered rather quickly from the recession as the bank was not as susceptible to fragilities in the global economy as its competitors.

You may not make a quick buck on TD Bank, but you can enjoy long-term returns with a four percent dividend yield. This is one of the best companies to invest in for those who value safe and guaranteed returns.

5. Nutrien (TSE:NTR)

Potash, an ingredient used in agriculture to grow plants, has seemingly been in a bear market for years. Potash prices continue to be depressed, but for how much longer? Despite the lackluster movement in potash futures, Nutrien is an attractive stock.

The company was formed after Agrium and PotashCorp merged, forming a corporation with $40 billion in market capitalization. The stock is performing well, trading in between its 52-week highs and lows at $65 a share. But what is appealing is the 3.77 percent dividend yield.

Since the population is only growing, food supplies will need to adapt to meet the demand. This is where potash, and thus Nutrien, enters the picture.

6. Canadian Tire (TSE:CT)

The Canadian retail giant recently soared to a record high of $167, an impressive feat considering how we are all shopping at Amazon and Walmart these days. So, what is going on?

Canadian Tire has adapted to the changing market landscape, investing in e-commerce and new technologies. It has also partnered with well-known brands and diversified its inventories. It has a lot going on in its favour that it might weather a recession, too. A 2.89 percent dividend is also pretty good.

7. BlackBerry (TSE:BB)

BlackBerry CEO John Chen realized his goal of reaching $15 a share. Since then, however, BlackBerry has been on a downward spiral, plunging to as low as $6 a share. After reporting a disappointing earnings report, investors hit the sell button. Does this spell the end of the former technology titan? Not quite.

BlackBerry is still in the middle of its overhaul, shifting away from hardware and concentrating primarily on its software. Moreover, the Waterloo, Ontario-based firm has an impressive portfolio of patents that would warrant a huge price-tag if another company wanted to buy BlackBerry. From artificial intelligence to enterprise security, BlackBerry has a diverse set of patents at its disposal.

This alone makes the Canadian business worth the gamble.

8. Roadman Investment Group (TSE:LITT)

An over-the-counter penny stock, Roadman Investment Group is an appealing investment opportunity for one thing: mushrooms.

No, not the vegetable kind that you use to make beef stroganoff. We are talking about medicinal mushrooms. With medicinal mushrooms projected to become an $11 billion business in the next five years or so, Roadman made several investments in companies that are integral to medicinal mushrooms.

If mushrooms do become a force in health care, then Roadman stands to gain.

9. Barrick Gold (TSE:ABX)


Gold prices are trading at their best levels in six years, buoyed by US-China trade uncertainty, market volatility, and central banks easing monetary policy. While nearly all gold mining stocks have benefited from the surge in the yellow metal, Barrick Gold has done well, and it could go even higher.
Recently turning down an acquisition offer from Newmont Mining, Barrick decided to stay the course – and that has been a gamble that has paid off. With a recession around the corner and interest rates falling again – Barrick has a large debt load – gold prices could rise even higher; some analysts forecast $2,000 an ounce.

In the meantime, you get to receive a few pennies in dividends.

10. Enbridge (TSE:ENB)

While not exactly a new kid on the block that is poised for a 5,000 percent gain, Enbridge still has an opportunity to balloon after experiencing weakness. Why is Enbridge on this list? Natural gas.

Enbridge’s business model is natural gas distribution. With the rest of the world transitioning into natural gas as a key energy source, Enbridge could see a dramatic climb in revenues to facilitate not only the distribution of the so-called bridge fuel, but it can also generate it, too.

Like Barrick, you can wait it out by taking advantage of its 6.17 percent dividend yield.