Billionaires with deep pockets are once again turning their attention to the TSX, snapping up shares in select Canadian companies at a rapid clip. Smart money knows that amid market volatility, undervalued gems with rock-solid fundamentals offer the best path to outsized returns right now.
Here are three top Canadian stocks billionaires appear to be keying in on right now.
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Canadian National Railway
Canadian National Railway (TSX:CNR) is a billionaire magnet, with many top billionaire investors (ahem, Bill Gates) continuing to own this stock for a very long time.
In fact, I’ve counted a dozen billionaires with large stakes in CNR stock, though there are plenty more out there as well (and thousands of 13-F filings to look through).
Despite recent dips from trade headwinds and execution hiccups, Canadian National is a top rail operator worth considering. This company’s network is vast spanning the whole of North America, with the company hauling everything from grain to intermodal freight with unmatched efficiency. Thus, for investors looking to benefit from broad-based North American economic growth, CNR stock is one of the best ways to do so.
Importantly, this is also a top dividend stock worth considering. With nearly three decades of consecutive annual dividend hikes (with a current yield that’s now around 0.5%), there’s both a growth and yield component to consider.
I think that as long-term growth continues, this compounder should provide plenty of upside for those thinking long-term.
Cenovus Energy
Oil prices are surging this week, as the Israeli and American attacks on Iran (and corresponding retaliatory strikes) stoke concerns that the straight of Hormuz could be shut down. For investors looking for top-tier operators in the oil patch to consider in this backdrop, Cenovus (TSX:CVE) is an excellent option to consider.
Cenovus Energy has at least a dozen billionaires piling in, drawn to its integrated oil and gas prowess amid a booming energy market. The company has made a number of key financial balance sheet moves I think are noteworthy. Census has been focused on slashing its debt load, selling non-core assets, and just closed an $8.6 billion MEG Energy buy that supercharges synergies at Christina Lake.
Notably, Cenobvus’ key fundamentals also continue to shine. The company brought in robust cash flows from its oil sands operations in recent quarters, using some of its free cash flow to buy back shares. Given how bullish analysts are on this company, and particularly its fortified balance sheet, I think there’s plenty of reason to buy Census right now as its margins continue to improve due to rising oil prices.
Brookfield Corp
Last, but certainly not least, we have a top pick of Bill Ackman and others to talk about in Brookfield Corp. (TSX:BN).
Brookfield is the parent company of a range of affiliated partnerships and private equity holdings. With this company, investors gain exposure to some of the best infrastructure assets in the market, and one of the leading alternative asset managers out there.
I think the company’s more than $1 trillion in assets should propel buying in this fee-based empire over time. Spanning real estate, infrastructure, and renewables, Brookfield has delivered 24% distributable earnings growth in 2024. That’s impressive, as are the company’s elite fundamentals.
Deploying massive capital into Oaktree and Just Group deals, AI-power plays via Westinghouse/Bloom, Brookfield’s durable cash flows are on full display. This isn’t a stock that’s cheap at the moment, but that’s not reason to watch this stock here. On any major pullbacks, I’d be a buyer of the quality that Brookfield provides.