What Canadian Stocks Can I Trade?

Oh, Canada! The land of poutine and maple syrup also has stocks. American companies get a lot of interest on major stock exchanges. However, their Northern Canadian neighbors also have interesting stocks available. In the article below, we will analyze multinational Canadian stocks that are also available on major US stock exchanges (NYSE and NASDAQ). We will take a look at a variety of industries.

Do Canadian Stocks Include Banks?

Canadian Stocks

Let’s begin our Canadian stocks analysis with possibly some of the safest investments available.

Unlike in the US, it’s not as easy to open a financial institution in Canada.

Hence, Canadian banks constantly compete with each other for clients.

They’re highly regulated and there are very few. Let’s take a look at some that are dually listed in Canada and the US.

Royal Bank of Canada (NYSE: RY or TSE: RY)

First, Canada’s market cap leader. RBC has over $1T in assets under management (AUM) worldwide, which includes 36 total countries. Their worldwide services include:

  1. Personnel and Commercial Banking (49%)
  2. Wealth Management (20%)
  3. Insurance (6%)
  4. Investor Treasury & Services (3%)
  5. Capital Markets (22%)

RBC is constantly growing as well as consistently pleasing its customers. Not only are they the North American Bank of the year for the second straight year, but they also have the best customer service in Canada. Serving high net-worth customers is this Canadian stocks goal.

Market cap: $162.84B

2021 revenue: $45.99B (up from $45.54B in 2020)

Current stock price: $114.15

All-time high: $119.41 (January 2022)

Dividend: 3.33% annual ; $0.95 quarterly

Canadian Stocks: Toronto-Dominion Bank (NYSE: TD or TSE: TD)

Did you know TD was apart of Canadian stocks? TD is Canada’s second-best bank and they are not too far behind RBC. I used to work for TD and I am still their client. Their online platforms are superior to RBC and other major Canadian banks. However, I always found they tried too hard to please customers. Many clients had their main accounts at RBC.

TD is only in 15 countries around the world and they have less than half of RBC’s AUM. In my opinion, TD is a better option for the middle-class. They are not as well recognized for the upper class and they need to work on that. Furthermore, TD must expand its global footprint with high net-worth customers.

Market cap: $153.32B

2021 revenue: $38.28B (down from $39.93B in 2020)

Current stock price: $83.95

All-time high: $86.02 (February 2022)

Dividend: 3.35% annual ; $0.70 quarterly 

What’s next for Canada’s biggest banks? Crypto mining is legal in Canada. Banks have the potential to get into this space. The majority of Canadians have a positive view of banks. However, do they have the same view of their privacy? If banks can partner with crypto miners and blockchain operators in Canada, a whole new industry can be created. More on this later.

Shopify (NYSE: SHOP or TSE: SHOP)

Canadian Stocks

Shopify was once upon a time the market cap leader in Canada. It began as an online snowboarding equipment company. Fortunately, the CEO realized the potential for e-commerce and expanded its services.

They went public in 2015. Thanks to Shopify, users can create their online store to sell their merchandise. They also facilitate payments for its users. 

Today, Shopify allows anyone in the world to create an e-commerce platform and to tell their merchandise with a few clicks. Regardless of the currency or the language, the platform is there to help its users; especially for cross-border sales.

Shopify also offers its users smart analytics to have an overview of their business and its potential. Support for other channels (Amazon, eBay) and technical tools are also offered. Over 300M users use the platform in 175 countries and with 133 currencies.

Since its IPO, Shopify kept growing…until November 2021. Since it’s lost almost half its market cap. The recent tech sell-off hit this stock more than others. It’s already valued more than what it’s worth.

Many believe it’ll bounce back and now is a good time to buy. The leading e-commerce platform has a lot of room to grow and exceed expectations.

However, Shopify released its earnings on February 16th. Despite beating both revenue and EPS forecasts, the stock tumbled almost 20%. What was the cause? Shopify is forecasting a slowdown in its growth once the pandemic ends. This news might not justify the steep drop. Will the stock bounce back?

Market cap: $89.43B

2020 revenue: $2.92B (up from $1.57B in 2019)

Current stock price: $729.83

All-time high: $1762.92 (November 2021)

Dividend: N/A

Canadian Stocks: Brookfield Asset Management (NYSE: BAM or TSE: BAM.A)

Canadian Stocks

BAM is the Canadian equivalent of Berkshire Hathaway but at a lower price and market cap.

With about $690B of AUM, BAM is a very interesting stock to own.

Bruce Flatt has been CEO since 2002 and shareholders have maintained trust in him throughout the years. 

BAM’s alternative worldwide investments include:

  1. Real Estate (Office, Retail, Multifamily, Hospitality, Logistics and Alternatives)
  2. Renewables (Hydro, Wind, Solar and Transition)
  3. Infrastructure (Utility, Transport, Midstream and Data)
  4. Private Investments (Infrastructure, Business, Industrials and Healthcare)
  5. Credit and Insurance (Growth, Opportunity and Lending)

They offer services to retail and institutional clients. Their objective is long-term investing. In 2019, BAM acquired Oaktree Capital to further diversify its holdings. Thanks to that acquisition, they can now invest in distressed securities. Investors’ returns depend on the company’s own investments. Their diversified investments allow them to spread the risk evenly. 

Market cap: $88.61B

2021 revenue: $62.75B (down from $67.82B in 2020, but up over the last years)

Current stock price: $56.45

All-time high: $62.46 (October 2021)

Dividend: 0.99% annual ; $0.14 quarterly 

Railway Companies to Trade

Canadian Stocks

We’ll focus on two main Canadian stocks railway companies: Canadian National Railway (NYSE: CNI or TSX: CNR) and Canadian Pacific Railway (NYSE: CP or TSX: CP).

They’re both in the top 10 for market cap in Canada. CP recently entered thanks to the acquisition of Kansas City Southern in December 2021.

The deal was approved by US regulators and was worth $31B. Thanks to this acquisition, a large part of Mexico can be part of CP’s network.

One final step remains in this deal. They must win approval from the Surface Transportation Board, which will release a verdict no earlier than in the second half of 2022.

Which Is the Better Of the Canadian Stocks?

Merger aside, which Canadian stocks company looks better? CN is the largest of the two. It currently spans from Yellowstone in Canada to New Orleans with 20,000 miles of tracks.

It’s used for freight transportation across both countries. Over the last few years, revenues and profits have been stagnant. There’s definitely a lot of room for improvement with costs. To grow, CN has to keep innovating and finding new ways to extend its business. 

Fun fact: Bill Gates is CN’s largest shareholder (11.6%)

Market cap: $87.92B

2020 revenue: $10.31B (down from $11.24B in 2019)

Current stock price: $125.48

All-time high: $136.22 (October 2021)

Dividend: 1.58% annual ; $0.58 quarterly 

CP is also a freight operator. Both companies operate in the same industry. However, CP has been growing at a faster pace and is more attractive to investors. Revenues are lower, but margins are higher.

The cherry on top is the merger. It will allow CP to catch up to its rival and connect all of North America. Moving goods across borders will become easier for this Canadian giant. However, the deal is not done yet. If it closes this year, the stock will have a healthy growth opportunity. Keep a close eye for news!

Market cap: $68.49B

2020 revenue: $5.75B (down from $5.87B in 2019)

Current stock price: $73.60

All-time high: $83.07 (May 2021)

Dividend: 0.81% annual ; $0.15 quarterly 

Rogers Communications Inc (NYSE: RCI or TSX: RCI.A and B)

Telecommunications

One of Canada’s current telecommunications leaders and Canadian stocks is Rogers. It’s a technology and media company mainly conducting business in Canada. Hence why it’s apart of our Canadian stocks.

It provides wireless, media, and cable services. 61% of revenues are from its wireless sales. Rogers also has many partnerships with sports teams in Canada.

Rogers offers financial services thanks to Rogers Bank. They offer 3 credit cards via Mastercard.

In March 2021, Rogers made public their offer to buy Shaw Communications (NYSE: SJR), one of their competitors, for $26B. In theory, this would make them the biggest telecommunication company in Canada.

However, the deal comes with a lot of criticism. This deal would limit competition in Canada.

As someone who used to live in Montreal, I can assure you that prices are already outrageous. This deal might increase current prices and would allow Rogers to do as they wish across the country. 

Rogers’s annual revenues have been stagnant for the last decade. The ambitious acquisition of Shaw can boost their revenues, but it is still a longshot. To grow, the company must expand across the border or overseas. Currently, they are trying to cut costs and lay off employees. This isn’t the best strategy to increase revenues.

Market cap: $26.40B

2020 revenue: $10.38B (down from $11.35B in 2019)

Current stock price: $52.36

All-time high: $55.72 (February 2019)

Dividend: 3% annual ; $0.39 quarterly 

Telus Corporation (NYSE: TU or TSE: T)

Telus is another telecom leader in Canada. Domestically, it provides the same services as the other Canadian stocks company Rogers. Additionally, Telus offers healthcare software to various Canadian companies. They also develop software for the industry. Telus also has better management.

Telus has seen steady growth in revenue over the years. Customers also seem happier with them.

Market cap: $34.51B

2020 revenue: $11.45B (up from $10.99B in 2019)

Current stock price: $25.06

All-time high: $25.19 (February 2022)

Dividend: 4.11% annual ; $0.26 quarterly 

Enbridge (NYSE: ENB or TSE: ENB)

Oil

Canada has no lack of resources or companies that can exploit them.

Enbridge operates mainly in North America. They’re responsible for 30% of the crude oil movements in North America and 20% of the natural gas consumed in the US.

However, they are aware that innovations in renewable energies are essential. Their investments include 23 wind farms, 17 solar farms, 5 waste heat recovery facilities, 1 geothermal project, 1 electric transportation facility, and 1 hydroelectric facility across Europe and North America. All these green facilities can supply about 962,000 homes.

Enbridge’s revenues were steadily increasing over the last decade. However, 2020 was less productive than 2017. Global supply chains have been chaotic since the pandemic and business hasn’t been as good. 

Market cap: $83.93B

2020 revenue: $29.17B (down from $37.73B in 2019)

Current stock price: $41.30

All-time high: $52.98  (April 2015)

Dividend: 6.54% annual ; $0.68 quarterly 

Canadian Natural Resources (NYSE: CNQ or TSE: CNQ)

Power

CNQ’s operations are less diverse than Enbridge’s. They own the largest undeveloped land base in the Western Canadian Sedimentary Basin.

North American operations include natural gas, crude oil, and oil sands.

Abroad, CNQ operates in the UK, South Africa, and Ivory Coast in the same industries.

Unfortunately, I couldn’t find many renewable energy projects. I find it’s essential for an energy company to plan for the future. CNQ’s current portfolio is good for present needs, but it is lacking growth for the upcoming years.

Investors may be reluctant to invest in an energy company due to climate change

Market cap: $61.80B

2020 revenue: $12.61B (down from $17.23B in 2019)

Current stock price: $52.69

All-time high: $54.39 (February 2022)

Dividend: 3.51% annual ; $0.46 quarterly 

Crypto

Canadian Stocks

Finally, let’s talk about crypto. Canada is currently one of the top crypto miners in the world.

There surely isn’t a lack of space or green energy available for mining. 

Hut 8 Mining (NASDAQ: HUT or TSE: HUT) is focused on mining and holding bitcoins.

To mine BTC, they use a variety of resources ranging from gas, wind, and green energy in Western Canada. They are currently averaging 302 BTC per month. Other sources of income are BTC loans. 

Next, Bitfarms Ltd (NASDAQ: BITF or TSE: BITF) is almost 100% hydro-powered. They own farms in Canada, Argentina, and Paraguay. They mined 301 BTC in January 2022. 

At the moment, crypto miners’ stock price depends entirely on the price of the coin. They must diversify their operations in order to have any kind of sustainable business that isn’t entirely dependent on mining. 

We spoke earlier about financial institutions partnering with mining companies. If they manage to do that and include BTC or ETH with bank accounts, it can be a huge step in the future.

Combining digital wallets with existing CAD or USD accounts is the next logical step. This doesn’t involve making them a national currency. Unfortunately, it might take a while until any progress is taken.

Canadian Stocks Conclusion

For those of you who didn’t know, Canadian stocks exist and they have a lot of potential. Many industries are represented and they can all be good investments. Some companies also offer attractive dividends. Many of them are dually listed in Canada and the US. Don’t forget to conduct your own due diligence before buying any stocks. 

If you want to learn more about how you can profit from the stock market, head on over to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.

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