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3 Top TSX Stocks to Buy for 1st-Time Investors

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It took just nine odd months for stocks to fully recover from the pandemic crash. Even if you missed the epic rally, it’s no big deal. TSX stocks might continue to rally, as the pandemic will not be as dreadful as it was this year. Here are three top stocks for beginners to bet on in 2021.

B2Gold

Gold and gold miner stocks witnessed a huge downward pressure last month when the vaccine news broke. But will gold lose its sheen after the pandemic? No! Investors who want to bet on the yellow metal can consider Canadian miner B2Gold (TSX:BTO)(NYSE:BTG). It has returned a remarkable 700% in the last five years.

It operates with three mines in Mali, Burkina Faso, and Chile. Higher gold prices and higher production more than doubled B2Gold’s earnings this year. Not just in 2020, the company has delivered strong profitability and growth in the last several years.

BTO stock has corrected almost 30% since late October and is a worthy opportunity for long-term investors. As the company manages to increase earnings, the stock price and dividends will likely keep on increasing.

It has a strong balance sheet and high-quality mines, which differentiates it from peers. Importantly, the yellow metal is still trading higher than last year and might continue to benefit miners.

Air Canada

The country’s biggest airline company Air Canada (TSX:AC) stock is my second pick. Indeed, that’s strange, as AC could be a risky bet for first-timers. But if one has a longer investment horizon, it is worth the risk.

With the pandemic’s end in sight, Air Canada stock has almost doubled since late October. It still has a long way to go to reach its pre-pandemic levels. But Air Canada’s Q3 earnings highlighted that the worst is behind and is ready for a grand recovery in 2021.

Higher revenues and lower cash burn should continue to drive the stock higher for the next few months. A probable government bailout, which should have come by now, could be another driver for Air Canada stock in the short term. In the long term, its operational efficiency and controlling market share should drive its profitability and growth.

Air Canada stock certainly looks overvalued after its steep rally. Cautious investors can wait for a pullback or consider buying in a couple of slices.

Shaw Communications

Shaw Communications (TSX:SJR.B)(NYSE:SJR) is a classic defensive pick and will provide stability to your portfolio. It is a $12 billion telecom company with home phone, wireless, and broadband operations.

It pays monthly dividends and yields 5% at the moment. That means if one invests $5,000 in Shaw Communications stock, they will receive $250 per year in dividends. The payouts will increase every year, as the company’s profits increase.

Telecom companies like Shaw are stable companies. One can hardly see large swings in their stock prices. Shaw Communications earns stable earnings and thus pay stable dividends. You might not see superior, market-beating returns from Shaw, but you can expect long-term stability and dividends.

First-time investors can start with these three top TSX stocks. The diversified portfolio will generate stable dividends and will also offer the potential for high growth.

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Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

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