5 Stocks You Can Confidently Invest $500 in Right Now

Do you want to take advantage of the bear market to build long-term wealth? Here are five top TSX stocks you can confidently buy right now!


Image source: Getty Images

Whether you like it or not, bear markets are the best time to buy stocks. It may feel like the worst time to invest, because the world appears to be falling apart. Yet stock prices have fallen significantly, and valuations are becoming very attractive.

If you have five years or more to invest, here are five stocks that have a high probability of delivering market-beating returns ahead.

5 top stocks to buy for outperformance

Brookfield Infrastructure stock

Brookfield Infrastructure Partners (TSX:BIP.UN) stock just fell 18% over the past month. Trading for 11 times funds from operation (FFO) per share, BIP stock has not been this cheap since early 2019 (other than the March 2020 market crash).

Despite that, BIP is operating on all cylinders. Its diverse mix of utilities, ports, pipelines, data centres, and cellular towers are benefitting from elevated inflation. Last quarter, its FFO grew 30%!

BIP stock trades with a 4.3% dividend yield, and it has a great record of growing that dividend. For a low-risk stock that can compound total returns by a mid-teens growth rate, BIP is one of the best.

Brookfield Asset Management

Speaking of Brookfield, Brookfield Asset Management (TSX:BAM.A) looks to be an excellent bargain today as well. Its stock is down 39.4% this year. With a price of $54, BAM stock is trading at a near 50% discount to its intrinsic value.

Brookfield manages over $750 billion of alternative assets (everything from real estate to insurance). The company has a lot of investable cash, so the current recession could present ample opportunities to invest in or acquire cheap businesses.

BAM is planning to spin off 25% of its asset-management business late this year. Several analysts believe this could unlock a lot of value for shareholders. If you have a long investment horizon, this is a solid TSX stock to pick up now.

CN Rail

For its combination of growth and income, Canadian National Railway (TSX:CNR) is a good anchor stock for any Canadian portfolio. It operates an economically crucial transport network. It has a strong competitive moat and great pricing power.

CN has compounded stock returns by an average of 13% annually for the past decade. It has a new chief executive officer focused on excellence and efficiencies. That could help drive even better results ahead.

CN has grown its annual dividend rate by around 14% a year. Right now, this stock yields a dividend close to 2%. It’s not the cheapest railroad, but it is a very a high-quality business you will be glad to own for decades ahead.

Northland Power

Northland Power (TSX:NPI) is a great stock for a combination of defence and growth. It has a diversified business of utilities and renewable power assets across North America and Europe.

Northland is a leader in offshore wind developments. This is one of the fastest segments of growth in the renewable power sector. Given the global energy crisis, it is benefiting from strong power pricing and a fast-growing backlog of development projects.

After a recent 13% price drop, this stock looks very attractive below $40. Not to forget, it also pays a nice 3.2% dividend.

WSP Global stock

WSP Global (TSX:WSP) has averaged a 20% average annual total return since 2014. Over the years, it has grown into a leading consulting, engineering, and design firm around the world. The company has a great track record of making smart acquisitions that expand its capacity, service coverage, and/or expertise.

It has an aggressive three-year growth plan that is targeting strong organic and acquisition growth ahead. It is uniquely positioned in the environmental space, which clearly has ample opportunities for growth ahead. Its stock is down 18% this year and now may be a perfect time to pick up this high-quality business at a slight discount.

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 Robin Brown has positions in Brookfield Asset Management Inc. CL.A LV, Brookfield Infrastructure Partners, NORTHLAND POWER INC., and WSP GLOBAL INC. The Motley Fool recommends Brookfield Asset Management, Brookfield Asset Management Inc. CL.A LV, Brookfield Infra Partners LP Units, Canadian National Railway, and WSP GLOBAL INC. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

A worker gives a business presentation.
Stocks for Beginners

2 Reasons to Buy Onex Stock Like There’s No Tomorrow

Onex (TSX:ONEX) stock has been a strong performer over the years, both in terms of growth and dividends that investors…

Read more »

Canadian Dollars
Stocks for Beginners

The Best Stocks to Invest $5,000 in Right Now

Are you looking to put some cash into the stock market? Here are three picks to put on your watch…

Read more »

A person looks at data on a screen
Stocks for Beginners

3 Warren Buffett Stocks to Hold Forever

Warren Buffett sold some shares in Apple (NASDAQ:AAPL), and the market had questions.

Read more »

Dividend Stocks

Got $1,000? Buy These Hot Growth Stocks Before They Take Off

These growth stocks just reported earnings that should have investors eager for more over the next year and beyond. They're…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Stocks for Beginners

Badger Stock is Up 80% Since June, With Far More Room to Run

Badger stock (TSX:BDGI) has soared 80%, but has even more room to grow as finances support its expansion strategy this…

Read more »

You Should Know This
Stocks for Beginners

Forget the Magnificent 7: “GRANOLAS” Stocks Are up Big and Are Far Less Risky

Magnificent 7 stocks are looking volatile, which is why it might be time to get a heaping spoonful of GRANOLAS…

Read more »

grow dividends
Stocks for Beginners

Forget Nvidia: Buy This Unstoppable Growth Stock Instead

Nvidia (NASDAQ:NVDA) stock surged this week reporting strong guidance and strong results, but I think it's already priced fairly.

Read more »

calculate and analyze stock
Stocks for Beginners

Up 30% This Year, Thomson Reuters Stock Still Has an Ace up its Sleeve

TRI (TSX:TRI) stock has seen shares explode 30% in the last year, but if you think the company is now…

Read more »