Top TSX Stocks to Buy Now: A Contrarian Investor's Perspective
While newbie investors might panic during market pullbacks, seasoned contrarians see opportunity. The recent downturn in global stock markets, including the TSX, presents a chance to invest in undervalued, high-quality stocks. This article highlights two TSX stocks that stand out as excellent buys right now.
Canadian Natural Resources (TSX:CNQ)
Canadian Natural Resources (CNQ) is a major player in the Canadian energy sector, boasting an $88.33 billion market cap. Currently trading at around $42.05 per share (Note: Price subject to change), it's down over 25% from its 52-week high, offering an attractive dividend yield of approximately 5.59%. This dip, while potentially related to US tariff fears, doesn't diminish CNQ's long-term prospects. New LNG export facilities and pipelines are reducing its reliance on the US market, and its impressive 25-year streak of dividend growth offers investors a comforting level of stability.
Bank of Nova Scotia (TSX:BNS)
Bank of Nova Scotia (BNS), or Scotiabank, is another TSX giant with a $63.17 billion market cap. As one of Canada's Big Six banks, it benefits from the historically solid performance of the Canadian banking sector. Trading around $68 per share (Note: Price subject to change), BNS is down almost 15% from its 52-week high and boasts a compelling dividend yield of approximately 6.22%. While trade tensions may cause short-term volatility, BNS's shift towards focusing on its Canadian and American markets, coupled with the high dividend, makes it an attractive long-term investment.
Foolish Takeaway
Investing in dividend stocks doesn't guarantee protection from market downturns; short-term price drops are possible. However, the consistent cash flow from dividends can mitigate the impact of such declines. CNQ and BNS represent companies with strong fundamentals and a history of dividend sustainability, making them potentially sound additions to a diversified portfolio. Remember to conduct your own thorough research before making any investment decisions. The information provided here is for informational purposes only and does not constitute financial advice.
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