Sometimes, the best stocks to buy are ones that you already own. This is often because you should have built up quite a bit of confidence after holding the stock in your portfolio for some time. However, this becomes especially truer if your portfolio is already quite large. Investors should try to keep up with all the news items surrounding the companies they own. If you hold too many companies in a portfolio, it may be difficult to do that. In this article, I’ll discuss three top TSX stocks I’ll be buying in 2022.
Adding to my top stock
I have no doubt that I’ll be adding to my Shopify (TSX:SHOP)(NYSE:SHOP) position in the new year. As of this writing, Shopify comprises my largest position among all TSX-listed companies. However, I feel like investors could still do well buying shares at these prices. Therefore, I would have no issues adding to the position.
Shopify is a global enabler of the e-commerce industry. It provides merchants with a platform and all the tools necessary to operate online stores. In Q2 2021, Shopify made headlines by surpassing Amazon in quarterly customer traffic for the first time in history. That speaks to its amazing growth rate and ability to contend as top player in a massive and growing industry. Last week, I’d declared Shopify as my top stock for the new year. I believe it could be Canada’s first $1 trillion company.
Not giving up on this top stock
This year has not been the greatest for Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) stock. As of this writing, the renewable utility company has seen its stock fall 20% this year. However, that doesn’t really trouble me after the stock gained more than 200% from 2019 to 2021. Its valuation may have gotten ahead of itself, and investors have collectively decided to push it down to more reasonable levels.
Brookfield Renewable operates a diversified portfolio of assets capable of generating 21,000 MW of power. This makes it one of the largest producers of renewable energy in the world. It also shows that Brookfield Renewable has been able to solve the issue of scaling, which challenges many utility companies. After the completion of its current construction projects, Brookfield Renewable estimates that it will more than double its current generation capacity. That would solidify its position atop the renewable utility industry.
Buying this top dividend stock
At its latest earnings report, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) announced that it would be raising its dividend by about 11%. That’s great news for the company, as it comes at a time of major uncertainty for the broader stock market. This announcement also keeps Bank of Nova Scotia on the list of Canadian Dividend Aristocrats.
Another aspect of this company that interests me is its growth potential. Bank of Nova Scotia has managed to establish a presence within the Pacific Alliance. That’s an area that includes the regions of Chile, Columbia, Mexico, and Peru. It’s currently estimated that the Pacific Alliance will grow faster than Canada and the U.S. over the coming years due to a growing middle class. If that happens, Bank of Nova Scotia could see major growth.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns BANK OF NOVA SCOTIA, Brookfield Renewable Partners, and Shopify. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Amazon and BANK OF NOVA SCOTIA.