The TSX today continues to trade down 7% since hitting 52-week highs last year. It’s no wonder that new investors might be a bit hesitant to enter the market when it’s not exactly doing so well. However, new investors shouldn’t see this as a downward trend but as an opportunity to buy smart stocks on sale.
Smart stocks would be considered as those that have a strong outlook as well as historical growth. In this case, here are the three top smart stocks I would consider buying in May 2023.
BCE (TSX:BCE) is definitely one of the smart stocks new investors should consider. It’s the largest of the telecommunications companies, offering the fastest internet speeds as well. It currently holds about 30% of the market with about 10 million customers, and that continues to expand — especially with its streaming services that provide partnerships to media, such as HBO and Showtime.
With earnings due out on May 4, it’s a great time to pick up BCE stock in May. You can see for yourself how the company is doing and then put it on a watchlist to see if it drops a bit in the near future. This will get you a major deal on top of the existing deal with shares down 10% in the last year.
The long term, however, is what counts. BCE stock is up 38% in the last decade after falling during last year’s drop. It offers even more growth, as telecommunications infrastructure continues to expand across Canada. Plus, you can get a 6.01% dividend yield as of writing as well.
Brookfield Renewable Partners
Another smart stock to consider is Brookfield Renewable Partners (TSX:BEP.UN). While Brookfield stock has only had its renewable arm on the market for 24 years, its parent company has been in the clean energy asset game since 1899. So, there’s history there in spades.
What’s more, the company still has more history of exposure to renewable energy assets than most companies out there. It’s expanded around the world, acquiring and creating partnerships with renewable energy companies in every industry. This diversification in terms of both assets and location provide investors with a great long-term opportunity.
That’s especially considering that the world is shifting more to the use of renewable energy. Yet the stock is down about 8% in the last year. It now trades at just 1.79 times book value and has earnings coming out. The company has missed estimates over the last few quarters, but I would still count this as a strong long-term buy — especially with a 4.32% dividend yield to consider.
Finally, CGI (TSX:GIB.A) is a strong choice as well if you’re looking towards the future of tech but still want stability. Similar to the renewable energy field, the tech sector has a lot of newbies. So, it can be hard to wade through the worst to get to the best. Yet CGI stock is definitely one of the best to consider.
The main point is that the company has major partnerships with companies as large as Microsoft that use its software. What’s more, it makes acquisitions on a near constant basis to expand its offerings. Furthermore, its largest revenue stream comes from government sources around the world, providing stable revenue offerings.
CGI stock is actually up 30% in the last year, so it could indeed give you some more growth. However, there could be a drop when the world goes through a recession. Perhaps put it on your watchlist and wait for a dip. Even so, it’s still one of the top smart stocks for new investors to consider for long term.
The post Just Starting to Invest? 3 Smart Stocks to Buy for May 2023 appeared first on The Motley Fool Canada.
Before you consider BCE, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in April 2023… and BCE wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points. And right now, they think there are 5 stocks that are better buys.
* Returns as of 4/18/23
Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners, CGI, and Microsoft. The Motley Fool has a disclosure policy.