August has been a mixed month for Canadian stocks. While the S&P/TSX Composite Index is up for the month, it is only slightly so. Of course, markets are trading over concerns about the rising Delta COVID-19 variant, geopolitical concerns in the Middle East and Asia, rising inflation, and monetary policy.
In order to overcome these concerns, a great investing strategy is to have a diversified portfolio and think long-term. The market always finds reasons to worry.
However, if you position your portfolio in good quality companies and choose to invest with a long-term time horizon, the day-to-day news matters much less. Here are three top Canadian stocks that give investors a nice mix of income, quality, and growth today.
A top Canadian renewable stock
Renewable energy is a long-term trend that should generously reward investors over time. As one of the world’s largest pure-play operators of renewable power assets, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a great Canadian stock for exposure to this sector.
This Canadian stock has struggled in 2021 and is down 13% year to date. Yet, this presents a pretty attractive opportunity. BEP is not a one-year investment to flip and trade.
It is a stock to hold for years and years. Today, BEP operates a 21,000 megawatt (MW) clean energy portfolio across the world. However, it has a 31,000 MW development pipeline that should fuel steady cash flow growth for years.
Today, BEP pays a decent 3.1% dividend. However, it has grown that dividend by a 6% compound annual growth rate (CAGR) since 2012. Given its opportunity to more than double operations over the coming decade, this Canadian stock can likely keep kicking out solid mid-teens total returns long into the future.
A top consumer health stock
If you are worried about another COVID-19 resurgence in the winter, you might want to consider owning Jamieson Wellness (TSX:JWEL). It is the leading provider of vitamins and wellness supplements in Canada. Chances are good you’ve seen or consumed its well-branded (and tasty) chewable Vitamin C products in-store or at home.
As autumn (and a potential COVID-19 resurgence) comes around, people are looking to give their immune systems a boost. This should give Jamieson some solid results over the next few quarters. In its recent second quarter, this Canadian stock produced revenue and adjusted EBITDA growth of 18% and 17%, respectively.
The company has been rapidly expanding in huge markets like China, Southeast Asia, and Europe. Similarly, strong retail channels, low-cost manufacturing, and a diverse distribution network have helped consistently expand margins. This stock is not cheap today. Yet, given its strong history of organic growth, it is an attractive retail/consumer staple stock to own for the long term.
A top financial stock
Canadian bank stocks are often in the news and well-discussed by market commentators. Yet, there is one little-known Canadian financial stock that has far outperformed any traditional bank. Had you bought goeasy (TSX:GSY) five years ago, you’d be sitting on a whopping 853% gain!
This is because goeasy has been eating up the sub-prime lending market across North America. Traditional banks no longer want to touch these riskier high-interest loans. Consequently, it has left the door open for goeasy’s stream-ined loan and leasing platform to capture a big piece of the nearly $200 billion market.
In its most recent quarter, goeasy grew loan originations by $379 million. That is a 121% year-over-year increase. That translated into revenue and earnings per share growth of 34.3% and 38%, respectively.
Since 2001, this Canadian stock has grown earnings by a CAGR of 24.9%! Despite incredible growth, this goeasy only has a market cap of $3 billion. That means its stock still has ample room to keep climbing. For a great compounder of capital, goeasy is a solid financial stock to buy and hold for years to come.