After rising over 7.3% within the fourth quarter, the S&P/TSX Composite Index has continued its uptrend, climbing 5.8% within the first quarter of this yr. Strong quarterly performances and easing inflation seem to have improved traders’ sentiments, driving fairness markets increased. Nevertheless, considerations over international progress amid a chronic rate of interest surroundings and central banks’ reluctance to decrease rates of interest sooner are causes of concern.

Given the unsure outlook, traders ought to look so as to add a mixture of progress, defensive, and dividend shares to their portfolios. In the meantime, listed below are my three high picks.

goeasy

goeasy (TSX:GSY) has witnessed strong shopping for over the past 12 months, with its inventory worth rising round 70%. Together with the development within the broader fairness markets, strong quarterly performances drove goeasy’s inventory worth. In 2023, the subprime lender had round $2.7 billion in mortgage originations. So, its mortgage portfolio elevated 30% to $3.7 billion. Amid the growth of the mortgage portfolio, the corporate generated $1.3 billion of income, 23% increased than the earlier yr.

Supported by steady credit score and cost efficiency, goeasy’s web charge-off charge stood at 8.9% in comparison with 9.1% within the earlier yr, whereas provision for future credit score losses declined to 7.28%. Whereas its effectivity charge, which measures the corporate’s capability to manage its overhead prices, improved 340 foundation factors to 30.2% this yr.

Additional, goeasy is growing modern merchandise, strengthening its digital infrastructure, and including new distribution channels to increase its mortgage portfolio and drive effectivity and profitability. In the meantime, the corporate’s administration tasks its mortgage portfolio to develop by 65% from present ranges to succeed in $6 billion (the midpoint of its steerage) by 2026. Income might develop at an annualized charge of 12.9% over the following three years. Additionally, its working margin might enhance from 38.1% in 2023 to 41% by 2026. So, its progress prospects look wholesome.

goeasy additionally pays quarterly dividends and has elevated its dividends for the earlier 10 years, with its ahead yield at the moment at 2.94%. In addition to, GSY’s valuation seems low cost, with its NTM (subsequent 12 months) price-to-earnings a number of at 9.5. Contemplating all these elements, I’m bullish on goeasy.

Waste Connections

Waste Connections (TSX:WCN) is a defensive inventory that collects, transfers, and disposes non-hazardous strong wastes. It operates in secondary and unique markets in the USA and Canada, thus going through much less competitors and having fun with increased margins. Final yr, the corporate’s income and adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) grew by 11.2% and 13.6%, respectively. In addition to, its adjusted EBITDA margin expanded by 70 foundation factors to 31.5%.

Final yr, Waste Connections made a number of acquisitions that may contribute $215 million to its annualized income. Persevering with its acquisitions, the corporate acquired 30 power waste remedy and disposal amenities from Safe Vitality Providers in February. In addition to, its investments in increasing Renewable Pure Fuel (RNG) and useful resource restoration amenities might enhance its financials within the coming quarters. In the meantime, administration tasks its 2024 income and adjusted EBITDA to develop by 9.1% and 13%, respectively. It hopes to increase its adjusted EBITDA margin by 120 foundation factors to 32.7%. Given its strong underlying enterprise and wholesome progress prospects, Waste Connections could be a superb purchase.

Enbridge

I’ve chosen Enbridge (TSX:ENB), which has been paying dividends for 69 years, as my remaining choose. The midstream power firm transfers oil and pure fuel throughout North America by means of its pipeline community. It has signed long-term contracts with its purchasers, which stabilizes its financials. In addition to, its inflation-indexed contracts defend its financials from rising bills, producing wholesome money flows. Notably, the corporate has elevated its dividends for 29 consecutive years, with its ahead yield at the moment at 7.48%.

Additional, Enbridge is increasing its footprint within the pure fuel utility enterprise by buying East Ohio Fuel Firm. Moreover, the corporate is buying two different pure fuel utility property in the USA, which might make it the most important pure fuel utility firm in North America. Together with these acquisitions, the corporate continues to increase its midstream power enterprise and hopes to place $8 billion of capital into service by the tip of subsequent yr. Given its strong underlying buYsiness, wholesome progress prospects, and strong monetary place, Enbridge could be one other worthwhile addition to your portfolio.