40 Best Stocks In Canada (Apr 2024): The Ultimate List

Choosing the best stocks in Canada is a tall order. There are over 1,600 companies listed on the TSX. It can be overwhelming to choose from all of these stocks.

But if we limit ourselves to the stocks that are not just great picks right now but should remain excellent TSX stock choices for the foreseeable future, it will be a pretty good list.

And with this evergreen lens, I’ve prepared a list of the best stocks in Canada spread out across multiple industries.

How We Chose the Best Stocks In Canada

I’ve chosen companies that don’t just offer a healthy competitive edge and have distinct characteristics that help them stand out from their peers.

Still, they offer a return potential that reflects this competitive edge. Naturally, that has resulted in many leaders, but the list isn’t solely composed of the blue-chip stocks in Canada. It also includes disrupters with great long-term potential.

Long-term stability has been an essential consideration for the stocks on this list, so you will not find things like crypto stocks that may be short-term stars, but long-term holding may not result in very consistent returns, especially if you manage to buy high.

Best Dividend Stocks In Canada

There are several companies in Canada that you may consider investing in primarily because of their dividends, even when they offer several other positives as well, including capital appreciation-based return potential.

1. Enbridge Stock

As the largest energy company in Canada and one of the largest in North America, in addition to being a pipeline company, Enbridge is a premier blue-chip energy stock you can invest in.

It offers generous dividends and has a stellar dividend history, and after growing its payouts for over 25 years, it’s an aristocrat from the stringent US standards as well.

As an aristocrat, it has grown its payouts during some of the most financially tight years.

It’s a resilient company, and even though its capital appreciation potential is low due to the sector-wide trend, it’s not non-existent. However, reliable high dividends are its primary attraction.

2. Canadian Imperial Bank of Commerce (CIBC) Stock

CIBC is usually the second most generous dividend stock among the big five banks and one of the oldest dividend payers in the country, though its dividend hike schedule is in line with the rest.

Like all other Canadian banking stocks, the conservative approach of CIBC ensures that the payout ratios remain relatively safe, even during financially strenuous years.

Its twice-a-year payout growth trend is not very consistent, but it does help it stand out as a dividend stock. It also offers decent capital appreciation potential, especially for a bank, making a perfect complement to its usually juicy yield.

3. BCE Stock

There are three large telecom companies in Canada, and BCE stock stands at the top – Both by market cap and, on most occasions, in dividend yield.

It’s a generous dividend stock, and its total dividend yield (for the year) didn’t fall below 4.6% once in the last decade.

The payout ratio usually remains safe, and the dividend growth, while not on par with the banks, stays well ahead of inflation.

Thanks to the highly consolidated industry, the telecom giant has little competition but a lot of room to grow, especially alongside the 5G penetration of Canada.

4. Capital Power Stock

Capital Power is a relatively small fish in the utilities, especially power generation “pond” in Canada.

It leans on the conventional side of power generation, but it’s on track of being completely off-coal by 2024, and in 2021, it was already generating 21% of its power using renewables.

The company offers a decent combination of steady growth and relatively stable dividends, but it’s also often overvalued.

The reliability of its income and, by extension, its payouts come from the contracted nature of its revenues. The longer-term the contracts are, the more stable its revenues are likely to be.

5. SmartCentres REIT Stock

SmartCentres is evolving. After becoming the shopping center/retail space giant in the REIT space (with a heavily Walmart-anchored portfolio), the REIT is now focusing on the more stable and long-term mixed-use asset class.

A lot of the REIT’s capital is tied to futuristic communities in desirable places, and if they are up and running as planned, the REIT will become an even more solid bet than it is right now.

It offers a healthy yield at a payout ratio that’s safer than most REITs, and it’s a strong candidate from a capital preservation perspective.

The high yield and sustainability make it a perfect choice for passive income.

6. Fiera Capital Stock

Fiera is one of the most generous dividend aristocrats (by yield). It’s a Montreal-based capital markets company that caters to a geographically diverse selection of individual and institutional customers.

Compared to its market valuation, the company’s assets under management (AUM) number is quite phenomenal, as well as the growth pace.

Its dividends are the primary reason to consider investing in this company, but it does offer reasonable capital preservation potential.

7. MCAN Mortgage Stock

As a federally-regulated mortgage investment company, MCAN’s stability comes from more than just its conservative investment approach.

And thanks to its amazing financials, the stock is almost always quite attractively valued, even after vigorous price hikes.

While it’s not on the list yet, MCAN is highly likely to become a dividend aristocrat in the future.

The yield is the primary attraction of this mortgage company, and it hasn’t fallen below 7% even once in the last decade.

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Best Energy Stocks In Canada

As the sixth-largest oil exporter in the world with the third-largest reserves, Canada has a healthy collection of energy companies.

8. Canadian Natural Resources Stock

Canadian Natural Resources is the largest independent natural gas and oil producer globally. It has a decent selection of assets in North America, including light crude, heavy crude, NGL, and oil sands.

But the portfolio also includes off-shore assets near Europe and Africa. It has an incredibly long reserve life and a strong balance sheet.

Despite its heavy reliance on oil, the stock has been relatively stable, even compared to pipelines.

It usually offers a healthy yield along with cyclical growth, which can get quite high alongside the demand for oil (like its post-pandemic growth of over 500%).

9. Suncor Energy Stock

Suncor lost its dividend aristocrat status after a very long time in 2020 when it had to cut its dividends.

But it still reigns as the oil sands king of the sector. And that’s not the only valuable part of its business.

Suncor controls an extensive network of retail stations (over 1,500) and has a 200 MW wind power plant.

Over 7 billion barrels of proven reserve ensure the company’s future (despite heavy oil’s higher refining costs) as long as there is a healthy demand for crude.

10.  Pembina Pipeline Stock

Pembina is one of the few energy stocks in Canada that you can buy not just for their dividends but steady and relatively reliable capital appreciation, albeit a slow one.

The company made an impressive recovery from the 2015 fall, which puts it a step ahead of the sector curve anyway.

And if you add its compelling yield and the safety it gets from the pipeline and business model, it is a resilient energy stock pick.

11.  Parkland Stock

As Canada’s and Caribbean’s largest independent fuel retailer and marketer, Parkland comes with a well-defined competitive edge.

It has an extensive network of convenience stores and retail fuel stations spread out over 25 countries.

And this reflects in its powerful capital appreciation potential as well as the company’s modestly generous dividend growth.

Parkland can prove to be a substantial long-term holding, especially if its network keeps expanding.

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Best Bank Stocks In Canada

Canada’s banking sector is counted among the safest and most stable banking sectors in the world.

Thanks to the conservative approach and robust regulations, the banks tend to weather financial crises with more equanimity than the banks of several other countries.

And though this reflects in the pace of growth, the overall return potential of most Canadian banks remains powerful enough.

12.  Royal Bank of Canada Stock

The Royal Bank of Canada is not just the largest bank by market cap; it’s the most valuable company in Canada and has retained that status for a very long time.

It’s also the top retail bank in Canada in several different categories and has a decent international presence.

Like almost all other Canadian banks, the primary reason many investors are attracted to the Royal Bank of Canada is its safe and healthy dividends.

It’s also one of the best growth stocks in the banking sector. It has a presence in over 27 countries and serves 17 million domestic and international clients.

13.  Toronto-Dominion Bank Stock

Even though it’s second in line when it comes to market cap, Toronto Dominion leads the Canadian banking sector in many areas, including the total number of retail clients (26 million).

It also has an impressively large online customer base, which is a strong indicator of a future-facing bank.

TD’s international presence is a bit different from Royal Bank’s, as it’s far more US-leaning. In terms of long-term growth potential, stability, and dividends, the bank is quite similar to its larger peer.

But if its digital presence keeps outpacing other Canadian banks at the current pace, it may emerge as the top bank in the country, especially considering the steadily shrinking market cap difference between TD and RBC.

14.  National Bank of Canada Stock

If you are looking for a Canadian bank stock whose return potential leans more heavily towards capital appreciation instead of dividends, the National Bank of Canada would be the perfect pick.

It’s one of the top growth stocks among the big five banks. Its rapid growth can be attributed to its lighter weight compared to the other giants in the banking industry.

National Bank of Canada mainly relies upon its domestic business and presence for revenue, and the largest chunk of its Canadian revenue comes from Quebec.

However, the bank does generate some of its revenue from its international clients. The bank caters to about 2.7 million customers with a network of over 400 branches in the country and 79 international branches.

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Best REITs and Real Estate Stocks In Canada

Canada is home to a healthy number of REITs, many of which offer rich return potential.

15.  Canadian Apartment Properties REIT Stock

Canadian Apartment Properties REIT is the leader of the pack and usually the largest REIT by market cap (by a decent margin).

It’s one of the few residential REITs in Canada and has a portfolio of over 70,000 residential suites spread out over eight provinces in the Netherlands, but thanks to population density, Ontario alone contains nearly half the portfolio of this REIT.

This REIT is a good choice for its capital appreciation potential because even though it does offer dividends and is an aristocrat, the yield is rarely top tier.

16.  Granite REIT Stock

Another REIT that’s more about growth than dividends is Granite. It has a lucrative portfolio of light industrial properties (logistics and warehouses), which has perfectly positioned it as a partner for e-commerce businesses at a time when e-commerce is booming.

It has a very healthy and geographically diversified portfolio, spread out over five countries: Canada and US in North America and Germany, the Netherlands, and Austria.

The REIT also boasts a powerful tenant portfolio, the top ten of which are responsible for about half the revenue generated by the REIT.

17.  Dream Industrial REIT Stock

Dream Industrial offers one of the best combinations of capital appreciation potential and yield, not just among the REITs but on the TSX in general.

The growth pace is enough to double your capital in about half a decade, and the yield has remained higher than 7% for six years out of the last nine.

The REIT has a portfolio of over 239 assets and boasts a decent occupancy rate.

And since industrial leases tend to be relatively long-term, a high occupancy rate promises healthy Funds From Operations (FFO), which reflects the good financial health of the dividends.

It’s also focusing on distribution and logistics properties, the most coveted within industrial properties.

18.  FirstService Stock

FirstService is the largest manager of residential communities in North America and is responsible for managing over 1.7 million residential units in about 8,500 properties.

Its second business segment, which generates almost as much revenue as its property management segment, caters to both residential and commercial real estate customers.

Growth is the primary reason to consider this stock since its dividend yield is usually less than 1%.

19.  StorageVault Canada Stock

StorageVault dominates a specific real estate market segment in Canada, storage spaces. It’s the largest owner and operator of storage spaces in the country and has consolidated seven brands under its banner.

The portfolio was about 96,000 storage units by the first quarter of 2022. The competitive edge of being the only player of its size in a relatively stable market space has been reflected in the stock’s growth as well.

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Best Financial Stocks (Other Than Banks) In Canada

The financial sector in Canada makes up about one-third of the whole market by weight, and there are several great options outside the banking sector as well.

20.  Brookfield Asset Management Stock

Brookfield is one of the largest asset management companies in the world.

By the first quarter of 2022, the company had over $690 billion in assets under management, and the portfolio of assets covered market segments like renewable and power transition assets, infrastructure, real estate, and private equity.

Both the company’s assets and its clients are spread out across the globe (over 30 countries).

21.  Sun Life Financial Stock

While it’s not among the top ten (like another Canadian company Manulife), Sun Life is a much more promising financial stock than its Canadian peers.

The company has a presence in about 27 different markets around the globe and about $1.44 trillion in assets under management (by 2022).

One factor that has contributed to Sun Life’s consistent financial and stock growth is its future-facing policies and operations, including advances in the digital forefront.

22.  Intact Financial Stock

As Canada’s premier Property and Casualty (P&C) insurance company, it controls about one-fifth of the total market.

The company has a serious competitive edge in the local market, and it also has an impressive presence in the UK and Ireland.

It operates through a wide range of brands, each with its own loyal customer base and rich target pool. The company operates directly as well as through brokers.

23.  Goeasy Stock

Goeasy has carved out a powerful place for itself in the personal loans market, primarily by catering to the market segment (people with bad credit) that are not actively targeted and served by conventional lenders, i.e., the big banks.

It has a straightforward business model and a quick turnaround time for loan approval, which results in a healthy number of happy customers.

The company has also expanded into the home financing space. It has an impressive network of over 450 locations across 190 cities in the country, which is akin to a small bank.

The company’s dividend growth has been generous for the past five or so years.

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Best Industrial Stocks In Canada

The industrial sector in Canada is quite diverse and includes businesses from several very different industries, many of which have little to no overlap with one another.

24.  Canadian National Railway

The Canadian National Railway, with its 20,000-mile-long network of railroads connecting three North American coasts, is the premier railway line in Canada.

It’s the largest by market cap and only has one serious competitor. The company is responsible for hauling about 300 million tonnes of cargo across North America and plays a crucial part in the supply chain for thousands of businesses.

It also has several complementary businesses like trucking, with one of the largest fleets in Canada.

As a hundred-year-old company with a business model that’s not becoming obsolete any time soon, Canadian National Railway is a compelling long-term stock you can hold in your portfolio, mostly for its growth but partly for its dividends as well.

25.  Thompson Reuters Stock

Thompson Reuters is among the oldest aristocrats in Canada. It has its roots in the newspaper business, something that’s still part of its corporate mix but contributes only a little to its revenue.

Most of the company’s revenue comes from its professional services and the solution it offers to target industries (including legal and accounting). The company also offers consultancy and markets itself as the answer company.

The stock saw two different phases in the last two decades: A period of long stagnation followed by a powerful but sustainable growth phase.

Its dividends are impressive due to its history though not so much for the yield it offers.

26.  Waste Connections Stock

As a solid waste management company with an impressive presence in North America (43 US states and six Canadian provinces), Waste Connections offers a lot of stability as an essential service/utility company.

The bulk of its revenue is generated from the US, where the bulk of its assets and customer connections are.

The extensive portfolio of its services which include commercial waste management and recycling, as well as special waste disposal, might help it emerge as a green waste management partner of businesses in North America, further solidifying its future.

27.  WSP Global Stock

WSP Global is a professional service firm that offers technical expertise and strategic advice to clients from several different sectors and market segments.

It has an impressive network of employees (professionals) spread out across the globe. It caters to both public and private sector clients and makes more money from its engineering and design services than pure consultancy.

The company has seen impressive growth over the years, both organic and through acquisitions, and the stock has followed course.

28.  TFI International Stock

TFII has emerged as one of the largest and most rapidly growing transportation and logistics companies in Canada.

It has already grown its network of operators (operating companies), its fleets, and the facilities under its purview to epic proportions, and its logistics network spans three countries now: Canada, the US, and Mexico.

As a crucial cog in the e-commerce machine that’s constantly growing, TFII has already established a place for itself despite the presence of giants like UPS, which reflects its strength and potential.

29.  Toromont Industries Stock

As one of the largest CAT heavy equipment dealers in the world, Toromont Industries has tapped into an almost evergreen market, especially in the current, connected world.

That’s because even if the heavy equipment it supplies is not needed in the local markets due to weak economic conditions, Toromont can broaden its reach to the international market without facing any serious competition.

The company has diversified its business to include several other segments as well, including refrigeration.

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Best Tech Stocks In Canada

Tech stocks are some of the most rapid growers in Canada, a trait that often comes with a high price tag.

30.  Shopify Stock

Shopify is one of the largest tech company in Canada by market cap, and for a brief time, it enjoyed the top spot on the TSX as well, as the most valuable stock in Canada.

In addition to its growth, its status as one of the largest global e-commerce platforms and subscription-based revenues, which offer financial stability as long as there are enough renewals, are also compelling reasons to invest in this tech giant.

31.  Constellation Software Stock

Constellation Software set the benchmark for consistent growth in Canada. From a price tag of $20s in the year 2006 to over $2,000 per share in 2021, the company has grown at a blazing pace.

A lot of this growth can be chalked up to its smart acquisitions and the widespread reach of its underlying businesses.

32.  CGI Stock

CGI is one of the largest IT and consulting companies in the world. It offers a diverse range of services, ranging from business consulting to infrastructure services, and caters to about twelve distinct industries.

The diversity of its operations is one of CGI’s many strengths. Apart from Canada, it has an impressive presence in Europe and caters primarily to five countries.

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Best Utility Stocks In Canada

Utility stocks offer a perfect blend of stability, dividends, and modest but long-term growth potential.

This is also why they are some of the most favourite defensive stocks. And the utility companies that overlap with green power are also compelling ESG and future-facing investment choices.

33.  Brookfield Infrastructure Partners Stock

Brookfield Infrastructure is part of Brookfield Asset Management and represents one specific business segment.

The company owns infrastructure assets pertaining to different businesses, chief among them are transport, utilities, midstream (energy), and data.

The last one shows that the company is entering into what will be the most important commodity in the future.

The assets are spread out across the globe and cover four main regions: North and South America, Europe, and the Asia Pacific.

The company offers solid growth potential and a sizeable yield, and the diversification of its assets (both from a geographic and asset class perspective) endorses the company’s long-term stability.

34.  Fortis Stock

As the second oldest dividend aristocrat in Canada, the company is on the verge of becoming a dividend king by the stringent US standards (50 years of consecutive payout growth).

But its stellar dividend history is not the only thing that solidifies it as a premier dividend stock.

With 3.4 million electric and gas customers under ten utility operations in the US, Canada, and the Caribbean, the company’s revenue are tied to safe and evergreen utility operations.

99% of the company’s assets are regulated, endorsing the company’s stability even more.

But the best part is that on top of incredibly safe dividends, the company also offers some capital appreciation potential, especially if you hold it for the long term.

35.  Brookfield Renewable Partners Stock

Another one of Brookfield Asset’s subsidiaries that have landed among the best stocks in Canada is Brookfield Renewables.

The company is focused on acquiring and operating renewable energy assets around the globe and, so far (2022 first quarter), has accumulated $58 billion worth of assets, with a total production capacity of 21 GW, most of which is in North America.

Hydropower makes up the bulk of the asset mix so far, but the company’s wind and solar portfolio are also rapidly growing.

Since renewable energy is one of the key elements of net zero by 2050, and Brookfield Renewable could be poised to capitalize on this growth.

36.  Algonquin Power & Utilities Stock

Algonquin covers the whole spectrum of electrical power (as a utility). It not only produces electricity using a mix of sources that leans heavily towards renewables but also takes care of the distribution.

Its utility mix is also quite diverse and includes natural gas and water distribution. The company is also rapidly expanding its renewable power generation portfolio.

The company usually offers a very attractive mix of high yield and potential capital appreciation, making it one of the best stocks in Canada.

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Other Best Stocks In Canada

There are four other stocks that didn’t fall into the sector classifications and above but are among the best stocks in Canada.

37.  Telus Stock

Like BCE, Telus is one of Canada’s three telecom giants. It’s a financially stable company in a stable but growing division.

Currently, it caters to a diverse mix of clientele/customers, which include wireless customers (the largest market segment) and Cable customers.

As 5G becomes more commonplace and starts penetrating further into the country and in regions Telus dominate, the company can see a lot of organic growth.

Currently, it’s the best growth stock out of the three giants and also offers a healthy dividend yield.

38.  Franco-Nevada Stock

The one and only gold stock on this list of best stocks in Canada is not truly a gold stock, at least if that definition is reserved for gold mining companies.

Franco-Nevada keeps all about dividend royalties, which gets its financial stake in different gold operations.

The beauty of this business model is that it offers a lot of the gold market’s upside while shielding the company from many problems inherent to the gold mining sector.

It’s a well-established dividend aristocrat, but its yield is rarely high enough to become the reason to buy this company.

39.  Metro Stock

Metro is one of the local supermarket leaders. Its headquartered in Montreal, and a hefty portion of its presence is in Quebec, where it’s rooted in the community, giving it an edge over outside competitors.

But the best part about Metro’s business model is its focus on food stores and pharmacies, with a network of about 950 and 650 locations, respectively.

These two businesses thrive regardless of the broader market conditions.

It’s one of the ten oldest aristocrats in the country and an aristocrat by US standards as well.

40.  Air Canada Stock

Closing the list is the country’s premier airline. Air Canada has clear dominance in the international and even domestic air travel in-country, and it’s rapidly expanding its cargo segment.

The stock has been in trouble ever since the pandemic, and it may be years yet before the stock starts growing at its pre-pandemic pace, but neither the beating the stock got during the pandemic nor the stock dilution, and financial troubles can take away its competitive edge.

How To Buy Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

The best stocks in Canada are a relatively subjective topic, as different investors have different criteria for what they consider best.

However, almost all of these criteria share certain characteristics, including return potential, competitive edge, place in the industry, etc. And the stocks above tick most of the relevant boxes.

So if you only want the best the TSX has to offer, the list will give you at least some compelling options.

If you are more comfortable with baskets of assets, i.e., funds, you may consider investing in the best ETFs in Canada instead of (or in addition to) the best stocks in the country.