The Motley Fool

Here’s How I’d Spend $10,000 on the TSX Today

Image source: Getty Images

The S&P/TSX Composite Index climbed 72 points on May 26. Canadian stocks have managed to stage a solid rally after the sharp correction we saw in March and early April. However, the TSX still has a long way to go to recoup its losses.

Many investors may still be sitting on the sidelines with cash after the bout of spring volatility. Today, I want to discuss how investors could spend $10,000 in their portfolio before we kick off the month of June.

Splurge on TSX tech stocks

Canadian markets possess a small technology sector relative to their counterparts south of the border. However, there are a good mix of high performers and promising underachievers to target right now.

Kinaxis is an Ottawa-based tech company that specializes in supply chains and operations planning software. Shares of Kinaxis have climbed 67% in 2020 as of close on May 26. The stock has soared 114% year over year.

Kinaxis possesses an immaculate balance sheet and its supply chain planning software has attracted customers from top companies like Uniliver, Toyota Motors, and Ford.

Earlier this month, I’d suggested that a $2,000 investment in BlackBerry could be worth a fortune at the end of this decade. The company posted a solid fourth-quarter earnings report in the face of the COVID-19 pandemic.

BlackBerry also boasts an excellent balance sheet and has established a footprint in exciting sectors like cyber security and automated vehicle software.

Two monster dividend stocks to own

While tech stocks above offer a nice shot at long-term growth, TSX investors should also be on the hunt for income. Below are two of my top dividend stocks.

Enbridge is the largest energy infrastructure company in North America. Earlier this month I’d discussed why this energy behemoth looked like a steal. Shares of Enbridge have climbed 8% month over month as of close on May 26. Enbridge currently offers a quarterly dividend of $0.81 per share, which represents a monster 7.4% yield.

Fortis is a St. John’s-based utility holding company. Utilities are an essential service, and therefore a stable option for income investors on the TSX. Shares of Fortis have climbed 5.9% year over year at the time of this writing.

The company last increased its quarterly dividend to $0.4775 per share, representing a 3.6% yield. Fortis has delivered dividend-growth for over 45 consecutive years.

Look to healthcare stocks

Healthcare stocks looked like a great bet heading into the early part of this decade. That has not changed in the wake of the COVID-19 pandemic.

On the contrary, this crisis has only strengthened the case for investment in healthcare-linked properties. Fortunately, there are some nice options on the TSX.

Jamieson Wellness is a Toronto-based company that develops, manufactures, distributes, sells, and markets natural health products in Canada and worldwide. It has steadily grown its footprint in Asia which has powered its growth in recent quarters.

Shares of Jamieson have climbed 22% in 2020 so far. Moreover, it offers a quarterly dividend of $0.11 per share, which represents a modest 1.4% yield.

Knight Therapeutics operates as a specialty pharmaceutical company in Canada and around the world. Biopharmaceuticals were the fastest-growing subsector in healthcare in the previous decade. Shares of Knight Therapeutics have climbed 9% over the past three months.

Knight is sitting on a promising amount of cash and boasts high growth potential after the exciting acquisition of Grupo Biotoscana late last year. In Q4 2019, Knight saw its revenue soar 280% year-over-year to $47.5 million in revenue.

Speaking of promising stocks to pick up in May . . .

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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 Ambrose O'Callaghan owns shares of FORTIS INC. David Gardner owns shares of Ford. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BlackBerry, BlackBerry, and KINAXIS INC.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.