Top TSX Stocks to Buy With $5,000 in November 2022

Got $5,000? Here are three top TSX stocks to buy if you’ve got a long time horizon and you want to grow rich.

| More on:
Canadian Dollars

Image source: Getty Images

So far, the month of November has been strong for TSX stocks. Over the past 30 days, the S&P/TSX Composite Index has climbed 10% back over 20,000 points. It has not traded above that level since late August 2022.

It is difficult to tell if this is another bear market rally (meaning there could be more downside), or if this is new bullish momentum rising from a very challenging year. Does anyone really know?

All I can say is that history shows that stocks tend to be a very good asset class for long-term investors. Bull markets tend to rise higher and longer than bear market declines. The longer you own a stock, the higher your chances of positive return.

If you’ve got $5,000 and five or more years to invest, here are some top TSX stocks to have on your radar this November.

A top TSX income stock

Brookfield Renewable Partners (TSX:BEP.UN) is one the world’s leading pure-play renewable power stocks. If you are looking for exposure to a very long-term trend, the transition to green energy is certainly one to consider. Trillions of dollars will have to be spent to match the current demand for fossil fuel energy.

Brookfield Renewables is on the forefront. It has an enviable portfolio of hydropower assets that provide very consistent earnings. Likewise, it is investing in wind, solar, battery, hydrogen, nuclear, and distributed generation projects/technologies around the world. It operates 23 gigawatts (GW) of power today. However, it has over 100 GW in its development pipeline.

After falling 11% this year, this TSX stock looks attractive with a 4.3% dividend yield. Brookfield Renewables has a great history of 6% annual dividend growth. For inflation-beating income and growth, this is an ideal stock for the long-term investor.

A top value stock

It has been a downright ugly year for Enghouse Systems (TSX:ENGH). This TSX stock is down 36% this year. However, if you don’t mind being a contrarian, it is a very interesting stock.

Enghouse has a long history of growing by smart acquisitions. It buys undervalued communications software businesses, fixes them up, and reaps the cash. In the past, it has re-invested its cash in more accretive acquisitions. This TSX stock was a major winner during the pandemic, but sales have been declining ever since.

Fortunately, the company has $230 million in net cash and a fortress balance sheet. A recession could present some great value-priced acquisition opportunities. Any announcement around a major acquisition could propel this stock significantly higher. At 10 times free cash flow, Enghouse stock is cheap, and it earns a nice 2.4% dividend yield while you wait.

A top TSX growth stock

Aritzia (TSX:ATZ) has been one of the best-performing stocks on the TSX this year. It is not without reason. Despite all the economic doom and gloom, Aritzia has consistently been beating market expectations and producing strong financial/operational results.

Aritzia has become a top women’s retailer in Canada and its U.S. expansion strategy is gaining momentum. Year to date, it has grown revenues and earnings by 56% and 37%, respectively. The company has a very strong, cash-rich balance sheet, so its growth strategy is not likely to slow anytime soon.

Unfortunately, this TSX stock is not cheap. One may want to wait for any sort of pullback to add it. However, given the size of its U.S. market opportunity (plus international), there is lots of growth ahead for this well-managed stock.

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 ARITZIA INC, Brookfield Renewable Partners, and Enghouse Systems Ltd. The Motley Fool has positions in and recommends ARITZIA INC and Enghouse Systems Ltd. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

concept of real estate evaluation
Dividend Stocks

BRE Stock: Should You Buy the 10.5% Yield?

BRE stock (TSX:BRE) offers investors the opportunity for a rebound in a real estate sector that should see high prices…

Read more »

A bull outlined against a field
Stocks for Beginners

Top 5 Sectors to Watch in a Bullish Market

Do you want growth in a bull market? These aren't just the sectors to watch but the stocks that should…

Read more »

little girl in pilot costume playing and dreaming of flying over the sky
Dividend Stocks

For a Shot at $6,228/Year in Passive Income, Buy 755 Shares of This TSX Stock

Looking for passive income? You'll need to look beyond only dividends. Which is why EIF stock could be one of…

Read more »

crypto, chart, stocks
Dividend Stocks

Why Waste Connections Stock Keeps Going Up

Waste Connections stock (TSX:WCN) continues to hit all-time highs. But is more on the way, or is an investment wasteful?

Read more »

Two seniors walk in the forest
Dividend Stocks

Passive Income Investors: The Best Bargain to Buy in June

Passive income investors shopping for stocks to own this month will be hard-pressed to find two better options that can…

Read more »

Stocks for Beginners

Undervalued Canadian Stocks to Watch in June 2024

Are you looking for value? These undervalued Canadian stocks are in the prime position for future growth and income for…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Avoid These TFSA Pitfalls to Keep More of Your Money

Investors continue to make many mistakes in a TFSA, so let's look at how to overcome them with these tips,…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

All-Time Highs, Next-Level Gains: 2 Top TSX Growth Stocks to Watch

These growth stocks may be at all-time highs, but that's not just over the last year. To the contrary, these…

Read more »