The S&P/TSX Composite Index has continued its stagnant performance in April. The TSX came in 77th among 93 global exchanges in the first quarter of 2018. The red-hot Canadian cannabis market, which powered growth in many portfolios in the latter half of 2017, has been hit hard in 2018 thus far.
However, investors should not give up on the Canadian stock market after this early slump. Today, we will focus on my top four stocks for investors to scoop up in the spring.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD)
TD Bank has dropped 4.5% in 2018 as of close on April 11 but is still up over 6% year over year. In late March, TD Bank CEO Bharat Masrani recently warned that global trade tensions could spark conditions that may lead to recessions in some countries. NAFTA negotiations have progressed well lately, and TD Bank will be itching for an agreement, as it relies heavily on its sizable U.S. footprint.
TD Bank hiked its quarterly dividend by 11.7% to $0.67 per share, representing a 3.5% dividend yield. The U.S. Tax Cuts and Jobs Act is expected to be a big boon for TD Bank going forward. The U.S. is also projected to lead the G7 in GDP growth in 2017. With the largest U.S. footprint out of any Canadian bank, TD Bank remains a very attractive target that may come at a bargain after a steep fall in late March.
Jamieson has surged over 13% month over month as of close on April 11. The Toronto-based sports nutrition and supplements company should definitely be on your radar. The supplements industry is geared up for massive growth heading into the next decade with an aging population in the developed world expected to fuel revenue.
Jamieson last declared a fourth-quarter dividend of $0.08 per share, representing a 1% dividend yield. This is a premier addition to hold for the long term.
Badger Daylighting is a Calgary-based provider of non-destructive hydrovac excavation services. Badger stock spiked on its 2017 fourth-quarter results and is up over 4% month over month as of close on April 11.
For the full year in 2017, Badger reported adjusted EBITDA of $125.4 million, representing a 20% increase from 2016. Net profit more than doubled to $65.9 million compared to $28.9 million, and the board of directors hiked its dividend by 18% to an annual dividend of $0.54. Badger stock was pummeled by short sellers in 2017, but its recent results hold promise.
Tucows is a Toronto-based company that provides internet content solutions, and it’s the second-largest domain registrar in the world. Tucows stock has plunged over 15% in 2018 thus far. Shares began the year near all-time highs before suffering a sharp correction and falling victim to a short-selling campaign. However, 2017 was a banner year with net revenue soaring 74% from 2016 to $329.4 million, and adjusted EBITDA climbed 37% to $41.3 million. Tucows stock has climbed over 800% dating back to April 2013.
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. Tom Gardner owns shares of Tucows. The Motley Fool owns shares of Tucows. Tucows and Badger Daylighting are recommendations of Stock Advisor Canada.