4 TSX Stocks I Own and Will Buy More of if They Fall

These are my four top choices of TSX stocks that may dip in the future, but will pay me back in full in the years to come.

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When I first started even thinking about writing this article, my first thoughts were, “Oh this’ll be so easy.” TSX stocks are down so much, it’s an easy win to find stocks that will soar upwards in the year to come.

But then I started to think. What about when those TSX stocks start coming down?

It’s bound to happen eventually. While TSX stocks certainly climb in the long term, it’s inevitable that there will be at least dips in them as well. The key is to find stocks that will continue to climb at a steady pace, with few dips along the way.

So, with that in mind, here are the four TSX stocks I would buy again and again, especially when they fall.

NorthWest Healthcare

NorthWest Healthcare Properties REIT (TSX:NWH.UN) has been so good to me. While it’s a relatively new stock, it’s one of the TSX stocks that’s performed incredibly well over the last few years. This comes from a combination of investing in real estate, healthcare properties, and expanding their properties around the world. But really, for me it comes down to the amazing 6.14% dividend yield I’ve been enjoying each month for the last few years.

Right now, shares of NorthWest are actually on part with where they were back in January but have risen 8% in the last two months. So, if another dip happens during this rebound, you can bet I’ll pick more up. Because even with inflation easing, I could certainly use more passive income from TSX stocks like this one.

TD stock

Another of the TSX stocks I’ll buy more of is Toronto-Dominion Bank (TSX:TD)(NYSE:TD). TD stock has turned a few thousand into over $10,000 in just the last few years for me. Again, that comes from a combination of growth in its core business coupled with the reinvestment of dividends — dividends that have seen huge growth after being on pause during the pandemic.

But what everyone seems to forget is that TD stock may be down, but don’t count it out! It has provisions for loan losses to help it recover from the drop in new loans from rising interest rates. It will come back, just as it has the last several decades.

And it’s just so cheap. Shares are still down 10.45% year to date, you can grab a 4.27% dividend yield, and at just 10.49 times earnings.

CP stock

I’ve been loving Canadian Pacific Railway (TSX:CP)(NYSE:CP) recently, and, honestly, I almost want it to drop just so I can buy more. In this case, it’s not for the dividend. Instead, it’s bound for greatness thanks to its huge US$31 billion purchase of Kansas City Southern.

This is why I want more and more and more. CP stock is one of the TSX stocks that’s going to explode in the next few years, just as it has over the last decade. It will have more money coming from brand-new revenue sources, all while investing in its infrastructure, including hydrogen-fueled railway cars.

CP stock is actually up 14% year to date and 16.8% in the last two months alone. So, hey, CP stock, feel free to have a bit of a dip, so I can buy more, please!

Lightspeed Commerce

It may surprise you to know I’d actually buy more Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD), but it’s true. The tech stock was part of the drop in this sector of TSX stocks during the early days of 2022 but fell even before. That’s thanks to the short-seller report that came out. But honestly, the company is doing so well. Just look at the numbers.

First-quarter revenue grew 50% year over year during the first quarter of 2023, with in-store shopping and dining leading the charge. That’s while inflation, interest rates and slower e-commerce fueled a drop in e-commerce-focused stocks. It’s actually one of the few TSX stocks that will do well, even if e-commerce remains as it is. But it won’t. E-commerce will make a comeback, allowing for Lightspeed stock to see massive growth in this year and beyond.

So, sure, shares are down 41% year to date, but since July 26, shares have climbed an incredible 31%. There’s a rebound happening, and anyone wanting in should choose now as the time — even if it dips again.

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 Amy Legate-Wolfe has positions in Canadian Pacific Railway Limited, Lightspeed Commerce, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and TORONTO-DOMINION BANK. The Motley Fool recommends Lightspeed Commerce and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

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