Written by Jed Lloren at The Motley Fool Canada
Many investors have become hesitant when it comes to buying stocks. This is due in large part to the state of the market. For much of this year, stocks have performed very poorly. In fact, the TSX has fallen about 12% year to date. It’s even worse in the United States, with the S&P 500 falling over 23%.
However, during times like these, it’s important that investors keep buying stocks. Doing so could help set you up for a comfortable retirement in the future — that is, if you buy strong companies. In this article, I’ll discuss three TSX stocks I’d buy until I’m blue in the face.
This outstanding bank stock
Bank of Nova Scotia (TSX:BNS) is the first stock that I would keep buying. This is one of the largest banks in Canada in terms of assets under management, revenue, and market cap. What initially attracted me to Bank of Nova Scotia is its focus on international growth. In 2021, nearly a third of its earnings came from sources outside of Canada. Well positioned in the Pacific Alliance, Bank of Nova Scotia could continue to see a lot of growth in that part of its business in the coming years.
Another thing that attracted me to this stock is its long history of paying dividends. In fact, Bank of Nova Scotia has managed to pay a portion of its earnings in each of the past 189 years. That’s very impressive if you consider how many recessions have occurred over that period. With a forward dividend yield of 6.19%, it’s an excellent time to be buying shares of this company.
A bet on renewable energy
As a relatively younger investor, I have the luxury of making bets on industries that could take longer to develop. The renewable energy industry is an example of this. Although the space is starting to gain a lot of attention around the world, it’s safe to say that it could be a lot bigger in the next decade than it is today. Companies like Brookfield Renewable (TSX:BEP.UN) continue to expand asset portfolios and could be a central figure in the utility sector in the next decade.
As of this writing, Brookfield Renewable’s portfolio has a generation capacity of 21 gigawatts (GW). It also has an additional 69 GW of generation capacity at various points along its development pipeline. In terms of its stock, Brookfield Renewable offers a very attractive dividend. It has also grown that dividend at a compound annual growth rate of 6% over the past 11 years. All these characteristics makes Brookfield Renewable a stock I’d be happy to continue buying in the future.
An interesting growth stock
Finally, I would continue buying shares of Topicus.com (TSXV:TOI). As far as additions to my portfolio go, this may be one of the newer ones. However, I believe it’s also one of the most interesting stocks in my portfolio. A former subsidiary of Constellation Software, this company acquires vertical market software businesses in Europe. What attracted me to it is the fact that it can work so closely with one of the most successful companies in its industry, while taking advantage of a highly fragmented European tech industry.
This year, Topicus has acquired more than 20 businesses. That suggests that it’s following an aggressive growth strategy. With Constellation Software in its back pocket, I have confidence that this stock could continue to grow over the next decade.
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Fool contributor Jed Lloren has positions in BANK OF NOVA SCOTIA, Brookfield Renewable Partners, and Topicus.Com Inc. The Motley Fool has positions in and recommends Topicus.Com Inc. The Motley Fool recommends BANK OF NOVA SCOTIA and Constellation Software. The Motley Fool has a disclosure policy.