After declining for most of March, the S&P/TSX Composite Index has finally started showing signs of life in the last few days. As of this writing, the Canadian benchmark index is up by 2.37% from its March 15th level. If you have been sitting on the sidelines, waiting for the bearish run to ease up, now might be the time to put money to work in the stock market.
Granted, there is no way to determine whether the market will post a bullish run just yet. Still, if you want to invest in the stock market while prices are low, now might be the right time. Despite the uptick in the last few days of trading, several high-quality stocks trade for significant discounts.
If you are looking for stocks to buy this April, I will discuss two TSX stocks I recommend loading up on this month.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is an $80.84 billion market capitalization bank headquartered in Toronto. The multinational banking and financial services company should not be a surprising pick. One of the Big Six Canadian banks, Scotiabank stock is a dominant player in the finance sector. Among its peers, it stands out due to its diversified exposure to various international markets.
Additionally, Scotiabank stock boasts an incredible dividend history. It has paid its shareholders dividends for the last 190 consecutive years. It means Scotiabank stock continued distributing profits through multiple economic crises and two world wars.
The collapse of several U.S. banks in the last few weeks triggered a selloff that did not spare Scotiabank stock either. However, it has started recovering on the stock market again.
As of this writing, Scotiabank stock trades for $67.83 per share and boasts a juicy 6.07% dividend yield you can lock into your portfolio today.
Constellation Software
Constellation Software (TSX:CSU) is a $51.55 billion market capitalization diversified Canadian software company. Headquartered in Toronto, the company has made it big by acquiring, managing, and building up various vertical market businesses in the tech sector for years. With operations diversified in several international markets, Constellation Software is unlike many other TSX tech stocks.
Acting more like a venture capital firm, Constellation Software has managed to find the perfect acquisition strategy to deliver sustainable, long-term growth to its shareholders. Due to its ingenious business model, Constellation Software stock has seen substantial growth over the years.
As of this writing, it trades for $2,432.55 per share, up by over 180% in the last five years. Unlike most tech stocks, it also pays its shareholders dividends on a quarterly schedule. At current levels, it offers payouts at a 0.22% annualized dividend yield.
Foolish takeaway
When investing in the stock market, you must create a well-balanced and diversified portfolio This is because diversification can give your portfolio more stability if one region or sector experiences downturns.
With the banking sector seemingly recovering from the dip due to the U.S. banking issue, Scotiabank stock is too attractively priced to ignore today. For more sustainable exposure to the tech sector, Constellation Software seems to be the best-positioned stock to consider.
While the stock market is not out of the woods yet, Scotiabank stock and Constellation Software stock can be excellent buys for exposure to the banking and tech sectors.
