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With Canadian stock markets absolutely roaring full steam ahead in 2021, it can be tough knowing where to put your next investment. Certainly, we are entering a historically weaker time in the stock markets. The old phrase, “sell in May and go away” might ring true, but it may not as well.
If you are investing with a long time horizon (over three years), it doesn’t really matter. Just look out for solid companies that have good balance sheets, reliable management (i.e., they do what they say they will do), and strong long-term prospects.
This simple formula has worked for some of the world’s greatest investors, and I think it can work for you. Considering this, here are three top Canadian stocks I think are a some great ideas for your portfolio in May 2021.
Best Canadian Stocks: How to Grow Your TFSA to $150,000 by 2025
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Over the last year, Canadians have been buying the best stocks and continuing to take full advantage of the benefits offered by the Tax-Free Savings Account (TFSA).
For those eligible since the TFSA’s launch in 2009, the total contribution room as of 2021 is $75,500. The limit increased by $6,000 for 2021, and that contribution room will continue to grow following the pace of inflation over the coming years.
There are many benefits to the TFSA, whatever type of investing you want to use it for. It’s particularly attractive for dividend investors because of the tax-free status. Any dividends that are earned inside the TFSA are not subject to tax.
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Canadian investors are wondering which stocks might still be good to buy after the massive rally in the past year wiped out most of the deals created by the 2020 market crash.
Why Crescent Point Energy stock looks cheap
Crescent Point Energy(TSX:CPG)(NYSE:CPG) went from $47 per share in 2014 to less than $1 at the bottom of the pandemic rout. Since then, the stock has recovered back to the current price near $5.
The plunge from the heights of the glory days came as oil prices fell and Crescent Point struggled with debt taken on to make acquisitions before the crash. In the past few years, Crescent Point slashed its dividend and sold non-core assets to get the balance sheet under control.
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Dogecoin has been around for eight years now. However, lately, it’s exploded in popularity. This massive growth has caught the eye of several investors. So many are wondering if Dogecoin is the best cryptocurrency to buy now.
Having momentum is definitely positive when it comes to investing. However, the fact that a stock or cryptocurrency has been rallying alone is not enough to make it worth an investment.
Dogecoin has proven that investors who gamble on it can get lucky and earn big returns. However, the case for whether it’s worth an investment today is still in question.