Are You Interested in Getting a Start in the Stock Market? Buy These 3 Stocks!

Are you looking for stocks that could help you get started in the stock market? Here are three great picks!

A person builds a rock tower on a beach.

Source: Getty Images

Getting started in the stock market could be very intimidating. However, in my opinion, it’s one of the greatest things anyone can do for their financial well being. It’s been shown that, over the long run, stocks outperform every other asset class. That makes investing in the stock market the best way to try to achieve financial independence. In this article, I’ll discuss three TSX stocks that new investors should consider buying today.

Start with one of the Canadian banks

In my opinion, all new investors should consider buying shares of the Canadian banks. There are a couple of reasons for this. First, the Canadian banks are very important companies within the Canadian industry. If you look at the largest companies in Canada (by market cap), four of the top eight companies are all banks. In addition, new investors should already be very familiar with these companies. Generally, banks have very simple businesses and nearly everyone relies on one to hold their cash.

If I could only choose one Canadian bank to invest in, it would be Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). What interests me about this company is its focus on international growth. However, if you aren’t a growth-oriented investor, then Bank of Nova Scotia’s dividend history could interest you. The company has been paying shareholders a portion of its earnings in each of the past 189 years. It also offers investors a very attractive forward dividend yield of 5.38%.

Invest in this top company

Canadian National Railway (TSX:CNR)(NYSE:CNI) is the second stock that new investors should consider buying. With nearly 33,000 km of track, this company operates one of the largest railway networks in North America. Canadian National operates from British Columbia to Nova Scotia and as far south as Louisiana. What interests me about the railway industry is how crucial a role it plays in the economy. Currently, there’s no viable alternative to transport large amounts of goods over long distances if not via rail.

Canadian National Railway stock is also notable for being very stable. It has a five-year beta of 0.67. For reference, a stock with a beta of one would mean that it’s as volatile as the broader market. Therefore, Canadian National stock could provide some well-needed stability to your portfolio. This stock is also well known for being an excellent dividend stock. The company has raised its dividend distribution in each of the past 25 years.

Online shopping could be much bigger in the future

If you’re interested in a blue-chip stock that could generate a lot of growth in the future, I’d recommend considering Shopify (TSX:SHOP)(NYSE:SHOP) for your portfolio. It is one of the largest players in the global e-commerce industry. It supports more than one million merchants on its platform. Notable companies that use Shopify include Pepsi and Netflix.

It’s no secret that Shopify stock has struggled this year. In fact, year to date, Shopify stock has fallen 73%. However, despite those struggles, I predict that Shopify stock could still climb from here. Younger consumers are helping drive a shift towards online retail. As that demographic grows to represent a larger portion of the global consumer base, e-commerce companies like Shopify could see a massive boost in revenue.

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 Jed Lloren has positions in BANK OF NOVA SCOTIA and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends BANK OF NOVA SCOTIA, Canadian National Railway, and Netflix.

More on Stocks for Beginners

A golden egg in a nest
Stocks for Beginners

Got $5,000? 5 Stocks to Buy for Lasting Wealth

Got $5,000 to build a long-term compounding stock portfolio? Here are five top Canadian stocks to building lasting lifetime wealth.

Read more »

Dividend Stocks

3 Dividend Stocks to Double Up on Right Now

Some of these dividend stocks will take longer to recover than others, but they'll certainly pay you to stick around.

Read more »

edit Person using calculator next to charts and graphs
Stocks for Beginners

Watching This 1 Key Metric Could Help You Beat the Stock Market 

If you're looking for the best way to beat the TSX 60, look at this key metric and find a…

Read more »

Online shopping
Stocks for Beginners

Is Couche-Tard Stock a Buy?

Couche-Tard stock (TSX:ATD) may be up 11% in the last year, but quarterly results have been shrinking, leaving investors on…

Read more »

Happy Retirement” on a road
Stocks for Beginners

2 TSX Stocks That Could Help Set You Up for Life

Looking for some of the best TSX stocks to add to your portfolio? Here's a duo to consider that can…

Read more »

A close up image of Canadian $20 Dollar bills
Stocks for Beginners

Low-Risk Investors: Why IAG Stock Could Be Your Best Bet Yet!

IAG (TSX:IAG) stock operates in a stable sector, with a strong dividend and returns. And there are even more reasons…

Read more »

Dollar symbol and Canadian flag on keyboard
Stocks for Beginners

3 Canadian Stocks Tailor-Made for Beginning Investors in 2024

There are some great options to buy now for beginning investors. Here are three stocks to buy today and hold…

Read more »

grow dividends
Stocks for Beginners

Check Out This Soaring Stock up 486% in 5 Years — With More Gains Likely to Come

Shares of this stock are soaring, up 486% in the last five years. But this small-cap stock has a lot…

Read more »