Canadian investors have enjoyed a strong bull run to start the first five months of the year. The S&P/TSX Composite Index is up 15% since the beginning of 2021, and I don’t see the growth is slowing down anytime soon. The country’s reopening could see TSX stocks continue the bull run through the end of the year.
At the market’s current price, I can understand why some Canadians may be hesitant to invest in TSX stocks. Not only is the market up 15% this year, but it’s also now up more than 30% over the past 12 months.
After the market’s incredible performance over the past year, there’s no shortage of high-priced growth stocks trading on the TSX today. That doesn’t mean there aren’t deals to be had, though. There are still lots of market-leading companies trading at affordable prices right now.
With just $100, Canadians can own both of these top TSX stocks.
Sun Life Financial
I won’t try to argue that insurance companies are the most exciting TSX stocks to own. In fact, I’d argue the opposite. But there’s nothing wrong with a boring investment that you can count over the long term.
Insurance has been around for years and likely will continue to be. That’s why as a long-term investor, there’s a solid bull case to make for owning a market-leading insurance company. It’s also an industry that you can count on regardless of the economic condition. Whether we’re riding a strong bull run or going through a recession, consumers and businesses will both continue to have the need for insurance.
At a market cap of $37 billion, Sun Life Financial (TSX:SLF)(NYSE:SLF) is Canada’s second-largest insurance provider. The TSX stock is mainly known for its insurance side of the business, but the company also offers its global customers a range of financial and wealth management services.
Sun Life won’t deliver market-crushing growth on a yearly basis, but it has managed to be a market beater for patient investors. Shares are on par with the market over the past five years. But over the past decade, Sun Life stock has more than doubled the returns of the S&P/TSX Composite Index. And that’s not even including the TSX stock’s 3.5% dividend yield.
For investors looking to take on more risk by investing in a growing industry, WELL Health (TSX:WELL) is a better fit for your portfolio.
The telemedicine industry exploded during 2020, which should not come as a total surprise. The pandemic drove up the demand for virtual doctor visits to record numbers last year. That demand has slowed in 2021, but I’m still bullish on the long-term trend of a rise in telemedicine.
Shares of WELL Health were up a monster 400% last year, easily outpacing the returns of the market.
Telemedicine is a growing industry which we really saw take off in 2020. Shares of WELL Health have cooled off this year, as the stock is barely positive since the beginning of 2021. That’s not a surprise, though, as many telemedicine stocks are trading well below all-time highs that were set last year during the height of the pandemic.
Shares are down just over 10% from all-time highs today. It’s trading an opportunistic discount that long-term investors will definitely want to take advantage of. And on top of that, the stock is trading at a very affordable price below $10 a share right now.
If you’re as bullish on the growth of telemedicine, as I am, you’ll want to take advantage of this TSX stock’s discounted price.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.