Most Popular 2022 Stocks Among Canadian Investors

While the markets aren’t doing so hot right now (with the TSX down ~12% year to date), one trend remained consistent over the last few years: DIY investing has become more and more popular.

As the new generation of investors look to friends, family, and online resources to decide what to invest in, Blossom is here to help. Blossom is a community of over 2,500 Canadian investors sharing portfolios, trades and ideas verified through their brokerage accounts. To help you decide on your next investment, we’ve compiled a list of the top 8 most popular holdings among Blossom investors to share with you.

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1. Toronto-Dominion Bank ($TD)

Number of holders on Blossom: 187

We’ve seen the TD logo around town, and maybe you use them as your bank, but what makes this bank the most popular stock amongst investors on Blossom?

Toronto Dominion Bank, or better known as TD Bank, is a banking corporation which focuses on providing financial products and services to customers. Originally founded in Canada, TD has since paved it’s way into becoming a powerhouse in the banking world, expanding in America and International grounds. TD Bank’s overall success is reflective in the company’s performances in the most recent years. During the COVID-19 pandemic, the company delivered record earnings and consistently outpace its peers through strong diversification in service offerings. In the most recent Q3 2022 earnings, the company reached a net income of $3.81 billion, which was up from $3.62 billion in the previous year. Compared to other banking stocks, TD remains the second largest by market cap on the S&P/TSX Composite Index, making it a fan favourite among Canadian investors.

2. Vanguard S&P 500 Index ETF ($VFV)

Number of holders on Blossom: 146

The second most popular holding amongst Canadian investors came at no surprise to us. The Vanguard S&P 500 Index ETF tracks the performance of the 500 largest companies listed on stock exchanges in the US. The fund is composed of 78% large cap companies (meaning the company has a market cap of more than $10 billion) with a 26.4% exposure to Information Technology. Another added bonus of $VFV is its low cost. With only a 0.09% management fee and a management expense ratio of 0.09%, its definitely on the low end compared to the average 1.98% fee you might be charged by a mutual fund in Canada

Overall, $VFV is a fantastic pick for investors looking for low fee, passive investing options that track the large cap US stock market.

3. Enbridge ($ENB)

Number of holders on blossom: 119

In third place is Enbridge, an energy company that provides energy transportation, distribution, and related services in North America and internationally. Enbridge focuses on operations within the crude oil and liquid pipeline sector, and is actively involved with natural gas transmission and midstream businesses.

The year 2022 has been a remarkable year for the energy supply chain. Due to the ongoing Russia-Ukraine conflict, the US and most of Europe have imposed sanctions against Russian oil and gas, which previously accounted for a significant amount of the oil supply. As a result, Enbridge’s strategic importance has increased, as it operates the largest oil and gas pipeline from Canada to the US. It’s expected that Enbridge cash flow’s per share will increase by 8% by the end of 2022 and it’s dividend’s per share by 5-7%. In addition, the company is expected to take over the North American LNG export market and grow 190% by 2040.

4. Telus Corporation ($T)

Number of holders on blossom: 115

Considered one of the Big Three in the telecommunications industry in Canada, Telus is a wireless service provider that currently tends to over 9 million customers nationwide. The company offers services including internet, television, landline phone services and most recently, insurance.

The Canadian telecommunications market runs as an oligopoly meaning the Big Three (Telus, Bell, Rogers) consume majority of the market shares. Canadian consumers pay a premium for data and wireless connectivity in comparison to the rest of the world, and the Canadian government has no plans on disrupting the market any time soon. Within the Big Three, Telus has gained the reputability of being a strong dividend stock. They’ve continuously shown growth as the company’s track record has seen compound annual growth at a rate of 6% of over 23 years, from 1999 till 2022, and are expected to continue this growth until 2026. Furthermore, the Telus stock is currently trading at a P/E ratio of 21. Despite being lower than last year’s ratio of 28, the current P/E ratio is still higher than it’s previous of 16 - 17 prior to the pandemic. Finally, Telus has recently expanded its ventures into the healthcare industry providing personal and professional healthcare solutions to customers. Completing their acquisition of LifeWorks in early September, Telus’ jump into the telehealth space is an attractive aspect to it’s business for retail investors.

5. Manulife Financial Corporation ($MFC)

Number of holders on blossom: 109

Manulife is well known for being one of the largest insurance companies in Canada and was actually founded in 1887 by the first ever Canadian prime minister, John A. Macdonald. The Toronto-based company is valued at just around $30.59B and remains attractively priced for strong long-term returns. Interestingly, they actually provide wealth management products and services not only to Canadians, but to the U.S. and Asia too. Given their large geographic reach, analysts have speculated that the company is well-positioned to “benefit from the growing demand for insurance and wealth management products in Asia” as retirement net inflows have increased by 24% in Hong Kong. Some analysts even consider Manulife’s stock “stable despite market volatilities.” Although they’re currently trading at a slight discount (-1.35% YTD), they’ve shown resiliency and could provide a nice income stream via their sizable dividend yield of 6.09%.

6. Algonquin Power & Utilities Corp ($AQN)

Number of holders on blossom: 94

AQN, or Algonquin Power Utilities Corp, is a renewable energy company that was founded in 1988. About 70% of their operations lie in electric, natural gas, and water waste with the remaining lying in renewable assets from wind, solar, and hydro. In the past couple decades, AQN has expanded into the utility business, acquiring three subsidiaries: Bermuda Electric Light Company, Liberty Power, and Liberty Utilities.

Although they’ve seen brighter days (currently down 33% the last year), their current yield of 7.72% and yield reset after 2023 make AQN an attractive long-term hold for investors. They also have a solid record of paying increasing dividends. Their 10-year dividend-growth rate is 9.5%, a relatively high percentage for the utility space. Overall, AQN is a good pick for investors looking for a stock with an attractive long-term payoff.

7. Vanguard FTSE Canadian High Dividend Yield Idx ETF ($VDY)

Number of holders on Blossom: 87

The Vanguard FTSE Canadian High Dividend Yield Idx ETF is the other ETF who made it onto the list. Unlike $VFV, $VDY is Canadian focused. This ETF tracks the investment returns of Canadian companies with high dividend yields and primarily invests in Canadian companies that pay dividends. According to Vanguard, $VDY “employs a passively managed, full-replicated index strategy to provide exposure of Canadian large-, mid-, and small-cap stocks, diversified across all industries.” They also have a relatively low management fee at only 0.20%. As a Canadian, $VDY is a great pick if you’re looking to your grow dividend income but may not have desire to manage your own diversified dividend portfolio (we know it can be a lot of work!).

8. Bank of Nova Scotia ($BNS)

Number of holders on Blossom: 81

The Bank of Novia Scotia, more popularly known as Scotiabank, is Canada’s third largest banking and financial services company. Canadians love to invest in banks as they’re considered one of the safest investments and Scotiabank’s fundamentals prove this theory true. Investors also love the fact that Scotiabank has consistently increased their dividend 43 of the last 45 years. Unlike other Canadian banks however, Scotiabank has exposure in other geographies besides the U.S. While other Canadian banks are heavily weighted in Canadian and American market positions, Scotiabank actually obtained half its earnings from South American markets including Mexico, Chile, Peru, and Colombia. Some analysts believe that these emerging markets have higher long-term growth potential than a developed market like the U.S.

Staying certain during uncertain times

As the markets have been treading recession levels, it’s good to see investors on Blossom favouring long-term investments. Trying to time the market during times of uncertainty and volatility is one of the fastest and surest ways to destroy wealth!

While the downturn hurts, many agree that bear markets are the best time to invest as you can get a ‘discount’ on your favourite stocks. If you’re still feeling uneasy during times like this, one great way to calm your nerves is to join a reliable investor community like Blossom. On Blossom, you can express your concerns and discuss the markets in a safe environment and get hear from other investors in the same boat as you (you can even checkout their verified portfolios to see you’re not the only one down 😜). You can also see what other investors are buying and how their investing thesis’ have changed during a time like now.

No matter what, just remember that there is no such thing as risk-free investing but by doing your due-diligence and investing with a long-term mindset, you can mitigate these risks and hopefully come out on the other side seeing green 😎

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