It’s time for a mid-year portfolio review. Indeed, June is a great month to assess how investors want to adjust their portfolios to maximize their long-term returns.
Indeed, the TSX has a number of great long-term options to choose from. Here are three of the best to consider today.
Royal Bank of Canada
For investors in search of low-volatility growth stocks on the TSX, Royal Bank of Canada (TSX:RY)(NYSE:RY) remains one of my top picks. In the latest quarter, Canada’s largest company by revenue and earnings recorded staggering net income of approximately $4 billion. This represents a 171% increase in comparison to the figures reported during the same quarter last year. Furthermore, its adjusted earnings per share trumped analysts’ expectation by $0.28.
Royal Bank’s size is one of the most crucial factors that investors tend to consider. Indeed, this Toronto-based company boasts highly diversified revenue streams. It has been able to generate double-digit returns consistently for its long-term investors, which is extremely rare. This stock trades around the $125 mark and has a dividend yield of 3.4%. I believe that this is certainly an option worth considering for investors seeking a core portfolio holding.
Investors might have to break the bank to add Shopify (TSX:SHOP)(NYSE:SHOP) stock to their portfolio. However, it is expensive for valid reasons. Indeed, when it comes to growth stocks in the technology space, there are few better options on the TSX today.
The long-term outlook for the e-commerce sector remains extremely positive. More and more retailers switch to the online space from being a traditional brick-and-mortar company. I don’t anticipate this trend changing.
Accordingly, investors looking to take advantage of this growth catalyst ought to consider Shopify at these levels. The company continues to trade at a meaningful discount to its recent all-time highs. For those who believe this stock is headed back to making new highs, now would be a great time to consider adding to a position in Shopify today.
When it comes to pure-play energy stocks, Suncor Energy (TSX:SU)(NYSE:SU) has been one of my top picks for quite some. Only a few companies can measure up to this Calgary-based company as far as quality and defensiveness are concerned.
Without a doubt, Suncor’s fundamentals are top notch. Moreover, considering where energy prices are right now, one can expect this company’s cash flow position to remain strong, at least for some time.
Well, Suncor’s breakeven cost per barrel currently sits around US$35 WTI. With WTI oil recently hitting US$71.50, investors are getting a great margin of safety with this commodities player. The company has been prudent in managing its cost structure and is highly profitable right now.
Additionally, Suncor has been making incremental steps in improving its renewables portfolio. I think this company’s long-term growth potential is enhanced by such moves. Accordingly, this is a stock to invest in for the short, medium, and long term.
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Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.