What Are the Best Stocks to Buy in 2023?
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Buying stocks online is becoming increasingly popular. Stocks investors can make a large return on their investment. In fact, an annual return of 10% isn't rare.
But which are the best stocks to buy right now?
In this article, discover the stocks to watch, the best profit stocks as well as the growth stocks for long-term investment in Canada and internationally.
The best stocks to buy right now: what you need to know
- The best stocks to buy for regular income are regular dividend stocks
- The best stocks to buy for long-term capital gain are growth stocks
- The cannabis sector is one of the best to invest in stocks
- Buying and selling stocks can be done directly online and in a simple way
Want to buy stocks? Qtrade makes it easy.
Top stocks of 2022
There are several stocks that may catch your attention in 2022 and represent an interesting investment for your stock portfolio.
- Shopify stock: this is the largest market cap in the Canadian market. Since its introduction in 2015, Shopify stock has recorded a 4,740% increase. This e-commerce specialist in the world has benefited from the Covid-19 crisis to increase its profits.
- Lightspeed POS stock: this fintech offers a cloud-based platform to small and medium-sized businesses. Its stock, listed for the first time in 2019, has returned 371% in two years. In 2021, the company grew its sales by 79% and analysts expect another 72% increase for 2022.
- Constellation Software stock: this is one of the best-performing stocks on the TSX with a return of over 11,000% since its introduction in 2006. According to the current analyst consensus, this stock is expected to grow sales by 8.2% in 2022.
- Dye & Durham stock: another technology stock to watch, with strong fundamentals including 2022 sales expected to exceed $340 million with EBITDA of $200 million. Thanks to the recent integration of new acquisitions, the group expects to increase its business and profitability in the medium and long term.
- Score & Gaming stock: the online sports betting company should benefit from the legalization of this type of gambling in several US states. Revenues recorded by the group in 2021 have largely exceeded expectations and sales are expected to increase by 100.5% for 2022.
- Aphria share: this company specialized in the cannabis sector, which is a very promising sector that we will talk about in detail below, is benefiting from a favourable consensus from analysts with a forecasted sales increase of 37% in 2022.
- Nuvei stock: fintech Nuvei Corp, which offers payment technology solutions, is also on a roll, thanks to the addition of cryptocurrency payment solutions, which should boost its profitability in 2022.
- Well Health Technologies stock: this stock is part of the health technology sector that was one of the most prolific during the Covid-19 pandemic. As a result, the stock has gained 7,500% in value since its 2016 IPO. Although it does not pay a dividend, it is a growth stock to watch with sales expected to rise 46% in 2022.
- Docebo shares: this company, which operates internationally in the technology field, has also taken advantage of the Covid-19 pandemic to boost its growth. It now enjoys a very strong cash flow that should allow it to generate even more profits in the years to come.
- Brookfield Renewable Partners stock: in addition to offering a dividend with a yield close to 18% per year, this company offers an interesting growth stock. The company is taking advantage of the boom in clean energy solutions and is looking to increase its dividend soon.
What were the best dividend stocks for 2021?
If you are an investor who mainly wants to buy stocks in order to generate regular income, it is worth looking at the companies that paid the best dividends in 2021 including:
- Fortis shares: the dividend of this company has increased steadily for more than 47 years and therefore represents a solid and reliable investment solution. The dividend currently has return of 3.67% with a payout ratio of 73%.
- Canadian Tire Corporation stock: this consumer products company has a 16-year dividend growth record with a current yield of 2.36%. While this yield does not make it one of the most attractive stocks from a dividend standpoint, it is more than made up for by its strong growth potential.
- Royal Bank of Canada stock: if you're looking to invest in the financial sector, RBC stock is probably an excellent choice. Although it has suspended the increase of its dividend which offers a current return of 3.59% due to the current crisis, it should keep offering an interesting return in the years to come.
- Manulife Financial Corporation stock: this insurance company offers a payout ratio of 42% which will allow it to increase its dividend for a long time. The stock's current yield is 4.3%, making it an attractive yield stock.
- Canadian Natural Resources stock: this energy giant currently offers a dividend yield of 4.5%, despite a high payout ratio of over 90%. This stock's dividend has also increased for 20 consecutive years.
- TFI International shares: specialized in the field of logistic transport, this company offers a rather expensive share but whose dividend is increasing rapidly with an average of 10% per year for 4 years.
- Telus shares: well-positioned to take advantage of the 5G boom, this telecom operator offers a dividend that has been rising for 17 years. The 4.73% yield offered by this stock is indeed very appreciable.
- Exchange Income Corporation stock: over the past 16 years, this company has increased its dividend 14 times and currently offers a yield of 5.87%. In addition, it is a monthly dividend.
- Labrador Iron Ore stock: this mining company pays special dividends to its shareholders, which have increased significantly over the past year. The current yield on this special dividend is 7.39%.
- Dream Industrial share: finally, this share of the industrial REIT sector proposes a dividend with a current yield of 4.95%, also with a monthly payment and a payout ratio of 49%.
What are the best cannabis stocks?
The cannabis sector is currently one of the best sectors to invest in the stock market and has some particularly interesting stocks including:
- Canopy Growth stock: this was the first company in the cannabis industry to be listed on the Toronto Stock Exchange. Canopy Growth is the first company in the cannabis industry to be listed on the Toronto Stock Exchange and has the largest market capitalization and market share in the industry.
- Aphria stock: this company is one of the stocks to watch in 2022 and beyond. It recently acquired its competitor Tilray and is therefore benefiting from the growth and volatility of this market.
- Hexo: this Canadian company has the advantage of low production costs with a large number of patents and is the leader of this market in Quebec.
- Aurora Cannabis: this company was also one of the first to take advantage of the cannabis market in Canada and differentiates itself from the competition with its product diversity and low production costs.
What are the best long-term stocks?
If you are considering investing in the stock market with a long-term investment horizon, here are some stocks you might consider buying:
- Palantir Technologies stock: this NYSE-listed stock is a technology stock that has seen strong growth since its IPO in 2020. It is making investments in the highly promising fields of artificial intelligence and Big Data.
- GoodFood Market stock: this TSX-listed company now has more than 300,000 active subscribers on its two platforms, and its revenue growth projections continue to improve.
- Newegg Commerce stock: this NYSE-listed company, based in the U.S, operates an online trading platform for electronic products while providing logistics services to small organizations and individuals. It also offers financial services for sellers, which allows it to multiply its revenue streams.
- Bank of America stock: this U.S. financial company is one of the leading financial services banks in North America. With more than 4,300 bank branches and 17,000 ATMs as well as an online platform, the bank has more than 40 million customers and operates in stable segments. The growth potential of this stock is still very strong today and should delight investors looking for stability.
- The Coca-Cola Company stock: the Coca-Cola stock is listed on the NYSE and has a very broad and comprehensive portfolio of brands in the beverage industry. This stock remains an attractive long-term investment opportunity as it operates in a core industry and has sufficient cash flow to further expand its revenue streams through new acquisitions.
- Telus Corporation: this TSX company mentioned above is a long-term investment opportunity in the telecom sector, but especially in the 5G sector, which is expected to grow significantly in the coming years.
What are the best foreign stocks?
While the Canadian market is full of interesting stocks to invest in right now, there are also a few foreign and international stocks to add to your portfolio. Here are the international stocks to watch right now:
- Nubank stock: this neo-bank is currently the largest in the world with a capitalization of $50 billion. Nubank has found success by targeting Latin American markets where the population has little access to traditional banking services and has become the most inclusive bank in Brazil. Its recent IPO in 2021 should allow it to gain value quickly.
- Apple stock: the world's largest market capitalization remains an interesting stock to have in your stock portfolio. At the beginning of 2022, this technology giant surpassed $3 trillion in capitalization. Analysts believe that this value can still rise thanks to the group's strong R&D and innovation capabilities. Moreover, the company is diversifying more and more in sectors as varied as health or Metaverse and could further increase its sources of profits.
- Atlassian share: this software publisher specialized in project management tools plans strong external growth through strategic acquisitions. It is positioned on several market segments with notably strong profitability from the B2B segment. According to analysts, this company should take advantage of the democratization of telecommuting to market even more of its products and its stock market share has therefore great chances to increase in value.
- ASML stock: this Dutch company is one of the most important in the field of manufacturing machines for the semiconductor industry, which can be found in many industrial areas. The group suffers from very low competition with high barriers to entry, which protects its market share. ASML should therefore benefit from the strong increase in demand for semiconductors in the coming years and is already valued at more than 330 billion dollars.
- Roche stock: the pharmaceutical sector also remains an interesting stock sector to invest in. Roche is one of the largest companies in this sector in the world and therefore represents an interesting opportunity. The company has the financial resources to develop new treatments quickly and to position itself effectively in promising segments with few competitors. With the growth and aging of the world's population, the need for pharmaceutical products is expected to increase, and Roche shares have every chance of benefiting from this.
- Nestlé stock: finally, you can also invest in the Swiss stock Nestlé which is a giant in the food industry in the world. The share price has been performing very well for several years and the company's growth should be supported in the long term by the increase in the world's population, which will favour the food sector as a whole.
How to buy the best stocks?
Now that you know which are the best stocks to buy at the moment, let's see how to buy them in just a few steps:
- First of all, you have to choose a financial intermediary or broker with who you will place your stock market orders.
- Once chosen, open an online account such as a cash account or margin account.
- Deposit your investment capital into this account.
- Search for the stock(s) you are interested in and place a buy order to add them to your portfolio.
Start building your portfolio of stocks or investing in a particular basket of stocks or sector using, for example, ETFs or exchange-traded funds to invest in.
Want to buy stocks? Qtrade makes it easy.