Best Stocks To Buy Right Now In Canada 2023: Top 10 Picks & Reviews

Noah Edis
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Reviewed by Randolph Vialva, MBA
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Shopify

Shopify

Editor’s Choice as the Best Overall Stock

4.8 stars - votes

TD Bank logo

Toronto Dominion Bank

Best Dividend Yield Among Major Financial Stocks

4.75 stars - votes

RBC bank

Royal Bank of Canada

Best Financial Stocks for the Highest Market Cap

4.6 stars - votes
Best Stocks To Buy Right Now In Canada

Stock markets are always on the move, and trying to predict the future can be difficult. However, if you know where to look, you can find stocks with good probabilities for success in the coming year. This article will discuss the best stocks to buy in Canada for 2022.

We’ve used several indicators, such as market trends, analyst recommendations, and company financials, to identify some of the best stocks to buy in Canada. We will also provide reviews of each of our top 10 picks. Let’s get started!

10 Best Stocks to Buy Right Now in Canada 2022

As an investor looking for the best Canadian stocks in 2022 from the Toronto Stock Exchange (TSX), you may consider the following ten picks:

Why Should You Buy Stocks in Canada

There are a few reasons why you should consider buying stocks in Canada, such as 

  • Economic stability: The Canadian economy has been doing well in recent years, and according to several forecasts, the growth will continue in the coming years. This is good news for investors, as it means that there will be more opportunities for companies to grow and generate profits. Despite the slowdown due to the pandemic, many sectors have bounced back quickly, and the overall outlook remains positive.
  • Less volatility: The Canadian stock exchange is not as volatile as other markets, such as the US or European markets. Although many analysts consider the Canadian stock exchange a low-return investment option, the risk with stock trading is lower too. And, with the economy moving positively, you will likely see steady growth over time.
  • Canada-based businesses: Many large companies in the Canadian stock markets have their headquarters in Canada. This gives you the added benefit of investing in businesses that you are familiar with and that has a good reputation.
  • Strong regulations: The Canadian government has established strong regulations to protect investors. For example, the Canadian Securities Administrators (CSA) is responsible for regulating the securities industry in Canada. This organization helps to ensure that companies comply with the rules and treat investors fairly.

Read more: Best Stock Trading App Canada

Shopify

Shopify

  • Significant year-on-year growth trend
  • Strong prospect for eCommerce industry
  • Solid business fundamentals
TD Bank logo

Toronto-Dominion Bank

  • Market reputation and vast branch network
  • Full range of banking products with digitalization
  • High dividend yield
RBC bank

Royal Bank of Canada

  • Very strong fundamentals as a company
  • Considered one of the safest banks in North America
  • Low P/E indicating an undervalued stock price and good history of paying dividends
Descartes Systems Group
  • Stable revenue growth in recent years
  • High emphasis on technological innovations in supply chain management
  • Innovative eCommerce warehouse management solutions
BCE Bell Canada Enterprises

Bell Canada Enterprises

  • Strong reputation for wide network and cost efficiency
  • Continuous emphasis on growth
  • High and stable dividend yield
Power Corporation of Canada

Power Corporation of Canada

  • Solid performance of many companies under the holding
  • Solid dividend payout history
  • A+ credit ratings for Senior Debts in S&P
manulife

Manulife Financial

  • Full range of insurance services with digital advancements
  • Low P/E ratio and high dividend yield indicating growth opportunities
  • Excellent market reputations
BMO bank logo

Bank of Montreal

  • Comprehensive banking products 
  • Digitized products
  • Consistent net income growth in recent months
TFI International

TFI International

  • Excellent B2B client base
  • Vast network of warehouses 
  • Stable price over the past months
nuvei

Nuvei

  • Strong innovations in the digital payment industry
  • Data and analytics products to support businesses and B2C clients
  • Continuous global expansion

Top 10 Best Stocks To Buy Right Now In Canada January 2023

Best Stocks To Buy Right Now In Canada

Shopify

Shopify

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Read Shopify Reviews

Headquartered in Ottawa, Ontario, Shopify (TSE: SHOP) is one of Canada’s best-performing stocks in recent years. Since its inception in 2006, Shopify has made it easy for global entrepreneurs to open an eCommerce platform to sell products in no time. 

  • Significant year-on-year growth trend
  • Strong prospect for eCommerce industry
  • Solid business fundamentals
  • No diversified business portfolio
  • High transaction fees

One of the reasons for Shopify’s growing popularity as an eCommerce service platform is their continuous focus on creating the best merchant and customer experience possible. The company currently has a total market cap of $61.41 billion, making it one of the leading eCommerce service platforms globally.  

The overall growth prospect of the eCommerce industry, coupled with Shopify’s recent partnership with YouTube to bring media creators to the platform, may quickly help the stock’s price to soar both in the short and long term.

Toronto-Dominion Bank

Founded in 1955, Toronto-Dominion Bank or TD Bank (TSE: TD) is one of Canada’s leading banking service providers. TD currently has over 1,100 physical banking branches, a large ATM network of over 2,600 ATM booths, and exceptionally advanced online banking facilities. 

  • Market reputation and vast branch network
  • Full range of banking products with digitalization
  • High dividend yield and dividend raise
  • Slow quarterly earnings compared to 2021
  • Comparatively lower interest rates than many competitors

TD bank offers a full range of banking products, including loans and deposits for retail and corporate customers. TD stocks have been offering a dividend of around 3-4%, which helps investors during inflation. The P/E ratio of approximately 1:1 is also on par with industry averages. 

Considering TD’s solid fundamentals and focus on bringing innovative banking services to the customers, TD stocks are a promising dividend stock in 2022.

Royal Bank of Canada

RBC bank

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Read Royal Bank of Canada Reviews

With a market cap of $187.35 billion, the Royal Bank of Canada (TSE: RY) is one of the most fundamentally solid Canadian banks, with over 17 million clients globally. 

  • Powerful fundamentals as a company
  • Considered one of the safest banks in North America
  • Low P/E indicating an undervalued stock price and growth stock
  • Unimpressive interest rates

The Royal Bank of Canada has a very diversified banking portfolio compared to many competitors. Its stocks have been demonstrating a positive trend, benefiting from the rising interest rates amidst a turbulent economy, which indicates the bank’s strict adherence to industry regulations and customer services. 

You can confidently consider Royal Bank of Canada as one of the most stable prospective Canadian stocks to buy in 2022.

Descartes Systems Group

Descartes Systems Group

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Read Descartes Systems Group Review

Founded in 1981 in Ontario, the Descartes Systems Group or DSG (TSE: DSG) focuses on improving its customers’ supply chain solutions and logistics through technological innovations. 

  • Stable revenue growth in recent years
  • High emphasis on technological innovations in supply chain management
  • Innovative eCommerce warehouse management solutions
  • High P/E ratio compared to the industry and other competitors

DSG’s stock price has been showing consistent growth over the past five years, thanks to the company’s strong R&Ds, which are aimed at bringing the most advanced supply chain and logistic management software and cloud solutions to the market. 

As many global businesses are now pursuing supply chain automation and efficiency improvement, DSG will likely see an upsurge in demand for their products, making it one of the best Canadian stocks to buy now.

Bell Canada Enterprises

BCE Bell Canada Enterprises

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Read Bell Canada Enterprises Reviews

Founded in 1983, Bell Canada Enterprises (TSE: BCE) is one of Canada’s largest telecommunication and network equipment providers. Bell’s 4DREPLAY technology has redefined the viewing experience of many professional sports. Bell stocks are among the best Canadian dividend stocks.

  • Strong reputation for wide network and cost efficiency
  • Continuous emphasis on growth
  • High and stable dividend yield
  • Unstable middle management

Bell’s current dividend yield is 5.76, which is very competitive with similar Canadian stocks. Bell stock prices reached their 52-week high in April 2022. Since then, they have undergone several corrective adjustments, rebounding again in recent months to reach a reasonable price.

Canadian investors may see stable growth of Bell’s stock price in the coming months considering the rising demand for its 5G network equipment and phone and internet services.

Power Corporation of Canada

Power Corporation of Canada

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Read POW Reviews

Headquartered in Montreal, Power Corporation of Canada (TSE: POW) is a globally renowned holding and management services company that has a strong and high-performing portfolio of several financial, wealth management, mutual funds, and investment firms, most of which are private equity companies. 

  • Solid performance of many companies under the holding
  • Solid dividend payout history as one of the best stocks with a dividend yield
  • A+ credit ratings for Senior Debts in S&P
  • Extensive focus on the financial sector

The company operates through several subsidiaries and investment projects, including Great-West Lifeco, IGM Financial, and Groupe Bruxelles Lambert. Power Corporation has total assets surpassing $62 billion and over 30,000 employees globally across its ventures. 

Power Corporation may be a safe bet for 2022 based on their portfolio strength. You can consider it one of the highest dividend paying stocks.

Manulife Financial

With over 130 years of operational experience behind it, Toronto-based Manulife Financial Corporation (TSE: MFC) has an excellent reputation in the insurance and investment industries in Canada and several other countries.

  • Full range of insurance services with digital advancements
  • Low P/E ratio and high dividend yield indicating growth opportunities
  • Excellent market reputations
  • Pricier packages among many of the life insurance companies

You can trade Manulife financial stocks in several global exchanges, including TSX, NYSE, SEHK, and PSE. Subsidiaries of the parent company include Manulife Bank of Canada, John Hancock Financial, and Manulife Investment Management. 

Considering the low P/E ratio, strong dividend yield, and solid company fundamentals, Manulife inspires a positive outlook for the future as one of the highest dividend payers.

Bank of Montreal

The Bank of Montreal (TSE: BMO) is one of Canada’s most reputable investment banks. It operates globally and offers diversified investment and loan products. BMO also significantly emphasizes the digitalization of its banking services, including direct banking and paperless online banking.

  • Comprehensive banking products 
  • Digitized products
  • Consistent net income growth in recent months
  • High monthly fees for several retail banking products

BMO has a market cap of $67.01 billion, and its stock price has remained pretty stable over the last few years, even when the economy was less buoyant. If you are looking for stable stock in the finance industry, the Bank of Montreal is a very reasonable choice.

TFI International

TFI International

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Read TFI International Reviews

Quebec-based TFI International (TSE: TFII) offers logistics and transportation services across North America. The four core business segments of TFI International are logistics, truckload, less than truckload, and courier services.

  • Excellent B2B client base
  • Vast network of warehouses 
  • Stable past growth and price
  • Limited diversification

TFI International has a vast network of nearly 12,000 in-house drivers and over 550 facilities to store packages and warehouse products. The company currently serves more than 80 medium and large businesses and has a market cap over $12.30 billion. 

TFI stocks stand out among Canadian stocks as a potentially good buy in Canada for 2022. The supply chain and high-value logistics industries currently have excellent growth prospects.

Nuvei

nuvei

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Read Nuvei Reviews

Another Montreal-based company on our list, Nuvei (TSE: NVEI) provides cutting-edge payment technology solutions for merchants and global enterprises in Canada and other countries.

  • Strong innovations in the digital payment industry
  • Data and analytics products to support businesses and B2C clients
  • Continuous global expansion
  • Some services like crypto payment are subject to sudden changes in regulations

Since the eCommerce SaaS (Software-as-Service) industries are showing strong growth potential in the near future, there will likely be a strong and consistent demand for supporting services like payment gateways. Nuvei has always been a reliable name in the industry and you may confidently rely on Nuvei stocks.

Criteria for Choosing the Best Stocks In Canada

Analysts spend a lot of time trying to predict which stocks will outperform the market, and there are several factors that they use to make their predictions. Here are some of the most important factors to consider when choosing the best stocks to buy in Canada for 2022.

  • Market trends: You should always consider the overall market trend. Whether the market is in a bullish or bearish trend will have a big impact on the performance of individual stocks.
  • Industry trends: If the industry is in a period of growth, then the stock is more likely to outperform the market. For example, many eCommerce stocks performed well during the difficult pandemic years.
  • Recent financial reports: You can find some reliable and insightful information about a company’s prospects by reviewing its recent financial reports. Look for companies that are reporting strong balance sheets, free cash flow, capital appreciation, and earnings.
  • Financial ratios: Financial ratios can be used to compare a company’s financial health to its industry peers. For example, Canadian companies with lower debt-to-equity ratios are generally considered to be in a better financial position.

In addition, your preference for growth stocks or dividend stocks may also play a role in determining the right stocks for you. 

How to Buy Stocks in Canada

If you’re new to investing, you may be wondering how to buy Canadian stocks or buy stocks of Canadian companies. The process to trade stocks is actually quite simple. First, you’ll need to open an account with a broker. You can choose between a discount broker or a full-service broker. Just be aware that discount brokers may offer fewer services. 

Once you have a brokerage account set up, you’ll need to deposit funds into it. You can do this by transferring money from your bank account or by using a credit or debit card. 

Once your account is funded, you’re ready to start buying or selling stocks. You can then start placing orders from your broker account.

Final Thoughts

There you have it – our top 10 picks for the best Canadian stocks in 2022. Analysts always recommend diversifying your investment portfolio with stocks from several industries and varying financial backgrounds. 

With that said, remember to do your own research before investing in any of the top Canadian stocks. This includes reading the company’s financial reports, paying attention to market and industry trends, and monitoring the stock’s price movements. You should also consult with a financial advisor to get professional investment advice.

Frequently Asked Questions (FAQs)

What are some good Canadian stocks to buy?

We have found Shopify, Toronto Dominion Bank, Royal Bank of Canada, Descartes Systems Group, and Bell Canada Enterprises to be some of the best Canadian stocks to buy in 2022. However, make sure you do your research before putting your money in the stock market and the top Canadian stocks.

What are the safest stocks to buy in Canada?

Analysts typically consider companies with strong fundamentals and market capitalizations to be safe over the long term. The Royal Bank of Canada and the Toronto Dominion Bank are among the safest stocks in Canada.

Is it profitable to buy stocks in Canada?

The Canadian stock market has historically been profitable for investors. Over the past ten years, the S&P/TSX Composite Index has gained an average of over 6% per year. However, stock markets are always subject to market conditions, so there is no guarantee of making a profit.

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ABOUT THE AUTHOR

Noah Edis
Noah Edis, BA
Business & Binary Advisor
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Noah Edis is a writer and entrepreneur with a wealth of experience in online businesses and marketing. When he's not working on his latest project, you can find him playing competitive dodgeball or pursuing his personal interest in business process automation.

ABOUT THE REVIEWER

He is an organized and creative thinking sales management professional with experience in outside and inside sales in various markets. Working as freelancer in the Greater Boston Market, he moved to St. Louis and became an Account Executive, then a Sales Manager managing and coaching 12 sales reps covering a nationwide territory. He has developed his team with a combination of consultative selling and value before price coaching mindset which has won him a President’s Cup and many other financially rewarding awards at RICOH. His most recent role as a Continuous Improvement Manager provided insight into the importance of delivering a quality product in alignment with the value and reputation of his organization. It further enhances the aspect of selling on value as opposed to price.

+ sources

Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.

  1. CSA | ACVM. Securities-administrators.ca. Published 2016. Accessed November 27, 2022. https://www.securities-administrators.ca/
  2. TMX Group. TSX.com. Published 2019. Accessed November 27, 2022. https://www.tsx.com/