© Reuters. Best stocks to buy in May: 3 perfect picks for long-term investors
Along with finding the best stocks to buy, the most important aspect of long-term investing is having discipline and patience. That’s why, as May begins and some of the best Canadian stocks have sold off lately, this is the perfect opportunity for long-term investors to buy them while they’re cheap.
When stocks begin to lose value, particularly rapidly, this undoubtedly creates a significant opportunity. However, being disciplined and patient partly means that you don’t buy just any stock right away or seek out the cheapest investments possible.
Instead, the first step is to understand why the market is selling off and assess what impact, if any, this will have on the long-term potential of the best stocks in Canada.
Once you’ve determined that this is a great opportunity and that the headwinds the market is facing will only be short-lived, you can then focus on finding the best Canadian stocks to buy long. term.
With that in mind, if you’re looking for the best stocks to buy in May, here are three ideal picks for long-term investors.
A High Dividend Growth Stock One of the best stocks you can buy today if you’re looking for a very reliable stock that won’t be highly volatile is North West Company (:TSX:). And after the stock recently sold off slightly, it creates the perfect opportunity for investors to buy this Canadian dividend aristocrat.
North West has grocery stores and supermarkets in remote communities, primarily in northern Canada and Alaska. Therefore, the stock is perfect for this environment, and although it offers the lowest growth potential of the three stocks on this list, it is by far the most reliable. Plus, it’s a high-quality, dividend-growing stock.
So, after its recent pullback, and with the stock now offering an impressive yield of around 4.2%, it is definitely one of the best stocks you can buy in May.
If you are an investor looking for a little more upside potential from your investments, investing in cryptocurrencies right now, while they are in disfavour, is a great idea. That’s why Galaxy Digital Holdings (TSX:GLXY) is one of the best Canadian stocks you can buy in May.
Galaxy is one of the best crypto stocks to buy simply because it provides investors with so many opportunities. Since the stock has several different operating segments, it has diversified its business well, offering more resilience but also more opportunities for massive growth.
Additionally, Galaxy’s core investment division, which finds and invests in emerging blockchain companies and new technologies, offers incredible long-term growth opportunities.
If you’re looking for high-quality stocks to buy in May, crypto stocks like Galaxy are definitely the ones to consider.
One of the best Canadian tech stocks to buy in May Finally, in addition to cryptocurrencies, other tech stocks continue to be among the best investments to buy in May. And right now, of all the tech stocks in Canada, one of the best to buy is Magnet Forensics (TSX:MAGT).
Magnet Forensics is a developer of digital forensics software to help acquire and analyze digital evidence of cyber crimes. In fact, the company provides digital investigative solutions to over 4,000 companies and public safety agencies.
This is an industry with enormous potential for growth, especially as our lives continue to be affected by technology every day. The industry is estimated to grow tenfold between 2020 and 2026. And by the end of 2026, the total damage from digital crimes is estimated to exceed US$10 trillion.
Naturally, this is an area where a high-quality growth stock like Magnet has a major lead, which is why it’s one of the best stocks to buy in May. In its recent earnings report, Magnet reported a 35% increase in revenue compared to the same quarter a year earlier.
Therefore, although the stock is trading at a very low price, it is definitely one of the best stocks to look for and potentially buy in May.
The post Best stocks to buy in May: 3 perfect picks for long-term investors appeared first on The Motley Fool Canada.
Dumb contributor Daniel Da Costa holds positions at Galaxy Digital Holdings Ltd. and THE NORTH WEST COMPANY INC. The Motley Fool holds positions and recommends Magnet Forensics Inc. The Motley Fool recommends THE NORTH WEST COMPANY INC.
This article first appeared on The Motley Fool