The Best TSX Stocks to Invest $1,000 in March 2023

Do you have $1,000 to invest in March? Here are some ideas on how to use recent market drama to your long-term advantage.

| More on:
Woman has an idea

Image source: Getty Images

So far, March has been a wild month for TSX stocks. Essentially, the TSX Index has given up all the gains made early in 2023, and we are back to par.

Canadian banks make a large part of the TSX Index. The TSX 60 is composed of several major financial players (think RBC, TD, Brookfield, etc.). Worries about contagion from the fallout of Silicon Valley Bank have been putting significant pressure on these financial stocks.

Energy stocks happen to make up around 10% of the TSX Index. They have seriously pulled back on worries that a recession will lead to a decline in energy demand.

Buy TSX stocks for the long term when the market is jittery

While the recent market drama might be a bit scary, it might also be an opportunity. Even recently, the acclaimed investor, Michael Burry (who predicted the massive banking collapse in 2008/2009), believes this will be short-lived.

The good news is that when the entire market draws down, it also pulls down good-quality businesses. Shrewd investors who are not afraid of the drama can pick up great businesses at better valuations.

If you got a few $1,000 to invest, this might be an attractive opportunity if you can invest with a long-term mindset (five or more years out). Here are two TSX stocks that could be interesting here today.

Brookfield Asset Management: A TSX stock for income and growth

Brookfield Asset Management (TSX:BAM) stock has pulled back 11% over the past month. This is the recent spin-out from Brookfield Corporation. This is a very intriguing income stock for a variety of reasons.

First, Brookfield is a leading manager of alternative funds and assets. These are diversified across real estate, infrastructure, renewables, credit, insurance, and private equity. Current dislocations in capital, could create great opportunities to acquire assets for cents on the dollar (especially for its credit division).

Second, the company has no debt and is asset light. It just collects a very stable and predictable earnings stream from the assets it manages. Just based on current and future funds, the company has already locked in around 15-20% annual earnings growth for the next few years.

This TSX stock yields 4% right now. It plans to pay out around 90% of earnings. As earnings grow, it is likely to keep growing its dividend. For income lovers, this could be an attractive buying opportunity.

Canadian Natural Resources: A top energy stock for the long term

Oil prices recently pulled back on global economic worries. Oil is trading for its lowest price since late 2021. While that has been a bad omen for TSX energy stocks, it may be a buying opportunity for investors that can stomach a little more volatility and risk.

Canadian Natural Resources (TSX:CNQ) stock has declined by 11% since March. With over a million barrels of oil and gas produced per day, it is one of Canada’s largest energy producers. CNQ also happens to be one of Canada’s most efficient and best managed energy companies.

It has over 30 years of energy reserves. It can produce that energy at a very low cost (it is cash flow positive between US$30-40 per barrel). This provides its significant operational and financial flexibility.

Today, this TSX stock yields 4.9%. It has been a great dividend-growth stock. Given its very strong balance sheet, this should persist.

While energy demand could temporarily decline, there is a long-term deficit in production that should keep prices elevated for the near future. If you can be patient and buy in the face of selling, this high-quality income stock could pay off.

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.

SVB Financial provides credit and banking services to The Motley Fool. Fool contributor Robin Brown has positions in Brookfield and Brookfield Asset Management. The Motley Fool recommends Brookfield, Brookfield Asset Management, Brookfield Corporation, Canadian Natural Resources, and SVB Financial. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

A airplane sits on a runway.
Stocks for Beginners

Are Airline Stocks a Good Buy in March 2023?

Few companies have felt the pandemic as much as airlines. But now that markets are open, are airline stocks a…

Read more »

Woman has an idea
Tech Stocks

3 No-Brainer Stocks to Buy for Less Than the Cost of 1 Tesla Share

Are you confused as to whether to buy Tesla shares? Here are three no-brainer stocks that can give you exposure…

Read more »

Make a choice, path to success, sign
Stocks for Beginners

2 “Bargain” TSX Stocks I’m Not Touching—and What I’d Buy Instead

Are you hunting for bargain stocks to make money from the recovery rally? Remember, not all stocks trading near their…

Read more »

financial freedom sign
Stocks for Beginners

2 TSX Stocks With Millionaire-Maker Potential

Here are two of the best TSX growth stocks you can buy now to expect eye-popping returns on your investments…

Read more »

stock market
Stocks for Beginners

Want to Beat the Next Bull Market? Buy These 2 Top Growth Stocks

The market is full of top growth stocks with massive long-term potential. Here are two options to buy now before…

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Tech Stocks

Market Tremors: Buy These ETFs While Everyone Else Is Selling

The US bank crisis has triggered a sell-off raising the risk of a stock market crash. It’s time to buy…

Read more »

clock time
Dividend Stocks

How to Earn $500 in Tax-Free Monthly Passive Income

A $500 monthly investment with a 5% yield can help you build a passive income portfolio that pays $500/month.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

3 TSX Energy Stocks to Buy If Oil Moves Higher

Top TSX energy stocks to buy on current weakness.

Read more »