One of the smartest ways to build wealth is to save regularly and invest in TSX stocks regularly. You don’t need large sums of money to begin investing. Today, there are many low-cost or no-cost trading platforms. That means you don’t need large scale finances to justify the cost of buying a stock or even a portfolio of stocks.
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Save and buy stocks regularly
Simply, save 10% or 20% of your income, and you will be amazed at how quickly you can accumulate several thousand dollars to invest. Dollar-cost averaging is a way of regularly building a TSX stock position over time.
Every quarter, you could plan to add to a certain stock. By buying at different points in the market you can avoid timing the market and avoid making risky pricing/valuation bets. If you have a few thousand dollars, here are two smart TSX stocks to consider building a position in today.
A top TSX financial stock
Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM) is great anchor stock in any portfolio. With $750 billion of assets under management, it is one of the largest managers of alternative and real assets (real estate, infrastructure, renewables, etc.) globally. This TSX stock provides a natural diversification hedge because of its diverse array of businesses, sectors, and geographic exposure.
Brookfield looks attractive here for several reasons. Firstly, it has historically utilized bad economic environments to acquire assets at very cheap valuations. It did this in 2009, which helped fuel +17% annual compounded returns for the next 13 years.
Secondly, the company is planning to spin out its asset management business from its capital investment business. It will be a more streamlined entity, particularly for accounting purposes. Many analysts believe this action could help unlock significant value for shareholders.
This TSX stock is down 17.7% in 2022. At a nearly 40% discount to its projected plan value, the stock looks like a bargain (so long as it can unlock that value in the public market). Regardless, Brookfield has very smart managers, high-quality assets, and many levers for unlocking growth and value over the coming years. It is a very solid, steady-growth stock to buy and hold for a long time.
A top TSX technology stock
Like Brookfield, Calian Group (TSX: CGY) has an interesting assortment of businesses. It operates in healthcare, training, advanced technologies, and cybersecurity. For years, the company has been a major services provider to the Canadian military. However, it has significantly diversified its customer base in the past three years.
Since 2020, the company has been focused on accelerating growth and profitability. Earnings per share has been growing at a 23% annual compounded growth rate. Likewise, net earnings margins have improved from the 5% range closer to 8%.
Last quarter, it delivered record gross margins of 30% and it saw earnings per share rise 11% to $1.47. Calian has a cash-rich balance sheet that it can continue to deploy into smart, diversifying acquisitions.
Given geopolitical challenges across the world, it should see a nice uptick in military spending for its training and technology services. This TSX stock pays a near 2% dividend. It only trades for a modest price-to-earnings ratio of 13. For a combination of high-teens growth, a nice dividend, and a cheap valuation, Calian is a great TSX growth stock to consider buying today.
