2 Easy TSX Stocks for Beginners in April 2023

You don’t need to think twice about loading up on these two Canadian stocks in April.

| More on:
edit Colleagues chat over ketchup chips

Image credit: Photo by CIRA/.CA.

After a hot start to the year, the Canadian stock market has since returned most of its gains earned in January. The S&P/TSX Composite Index jumped more than 5% in January but is now trading about flat on the year.

A key investing theme in 2022 was volatility. And unfortunately, I don’t think we’ll see that change in 2023. The Bank of Canada may have decided not to increase interest rates during its last announcement, but both interest rates and inflation remain far higher than pre-pandemic levels. There’s still a long road to recovery for investors, which is why I’m banking on more volatility in the short term.

Keeping a long-term mindset

Volatility or not, though, I’m certainly not planning on staying on the sidelines this year. As a long-term investor myself, I’m not overly concerned with the market’s movements on a day-to-day or month-to-month basis. Instead, I’m focused on finding top-quality companies that I’m comfortable with holding for the long term.

With that, I’ve reviewed two top TSX stocks that any long-term investor would be wise to have on their radar. Through thick and thin, these are two companies you can count on. 

TSX stock #1: Toronto-Dominion Bank

It may not feel like it, but now could be an incredibly opportunistic time to be investing in Canadian banks. With the recent U.S. bank failures, Canadian bank stocks have unsurprisingly also taken a hit.

However, it’s important to remember that U.S. banks have far different regulations than Canadian banks. I’d argue that much of the recent selloff within the Canadian bank sector can be attributed to short-sighted investors. The Canadian banks managed to weather the 2008 financial crisis far better than U.S. banks and there’s good reason to believe the same will happen this time around. 

At a market cap just shy of $150 billion, Toronto-Dominion Bank (TSX:TD) is Canada’s second-largest bank. And with a growing presence in the U.S., TD Bank is well on its way to establishing itself as a leader south of the border, too.

Shares are down about 10% year to date and more than 20% over the past 12 months. As a result, the stock is now trading at a much more attractive valuation. 

In addition to a discounted price, the dividend yield has also jumped up with the recent selloff. Passive-income investors can now earn a yield of close to 5% at today’s stock price.

If you’ve had one of the Big Five on your watch list, now is an opportunistic time to pull the trigger.

TSX stock #2: Constellation Software

Long-term investors looking for more of a growth-oriented stock pick should have this market-beating tech stock on their radars.

With Constellation Software (TSX:CSU) up close to 15% year to date, Canadians can’t exactly pick up shares at a discount. However, this is not a growth stock that has gone on sale often over the past decade.

In addition, not many TSX stocks have outperformed this tech stock over the past five- and 10-year periods. Shares are up a market-crushing 180% over the past five years and have returned more than 1,500% over the past decade.

If you’re looking for a dependable market beater, there aren’t many better options than Constellation Software.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

bulb idea thinking
Tech Stocks

This Growth Stock is on the Rise and Ready to Blow

WELL stock climbed 98% before falling on recent earnings, but is now back up 16% since that drop. So now…

Read more »

Tech Stocks

Secure Your TFSA for Retirement: Top Stocks to Invest in Now

Here's how you can diversify your TFSA portfolio and hold quality stocks across multiple sectors, lowering overall risk.

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Could This Undervalued AI Company Be Canada’s Next Big Thing?

Open Text (TSX:OTEX) stock could be the next tech stock to surge from its use of artificial intelligence, making it…

Read more »

Businessman holding AI cloud
Tech Stocks

Unlocking Profit Potential: 5 AI Stocks to Watch in 2023

AI stocks such as Nvidia and Microsoft have the potential to deliver outsized gains to investors in the upcoming decade.

Read more »

Technology, internet and networking, security concept
Tech Stocks

Top Cybersecurity Stocks for June 2023

Canadian investors should look to snatch up top cybersecurity stocks like Absolute Software Corp. (TSX:ABST) to start the month of…

Read more »

online shopping
Tech Stocks

Shopify Stock Rose 22% Last Month: Is it Still a Buy in June 2023?

Shopify (TSX:SHOP) stock rose 22% in the last month but is down from 52-week highs. So, is it time to…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

Psst … 2 Tech Stocks I’d Buy Before Shopify

Shopify (TSX:SHOP) stock is great -- don't get me wrong. But these two tech stocks are great too, with more…

Read more »

Technology, internet and networking, security concept
Tech Stocks

1 Top Canadian Cybersecurity Firm on the Frontline Against Cyber Threats

Here’s the best Canadian cybersecurity stock you can buy now to benefit from the expected significant surge in demand for…

Read more »