The Best Stocks to Invest $50,000 in Right Now

TSX investors should diversify their equity portfolios by investing in a combination of blue-chip, dividend, value, and growth stocks.

| More on:
bulb idea thinking

Image source: Getty Images

Investing can be tricky, given the number of asset classes individuals are exposed to. You can invest in stocks, mutual funds, exchange-traded funds, gold, bonds, real estate, and even cryptocurrencies. However, over the long term, stocks have consistently delivered inflation-beating returns and created massive wealth for investors.

The ongoing pullback in share prices and volatility surrounding the equity market provides you a chance to generate stellar returns once investor sentiment improves.

So, let’s take a look at the best stocks to invest $50,000 right now.

Tech stocks such as Snowflake

Investors can consider buying shares of beaten-down growth stocks, such as Snowflake (NYSE:SNOW), that are trading at lower multiples in April 2023. While Snowflake stock is down 63% from all-time highs, it is well poised to grow revenue and earnings at a rapid clip in 2023 and beyond.

The company ended fiscal 2023 with remaining performance obligations of over US$3.6 billion and close to 8,000 enterprise customers. Snowflake’s dollar-based net retention rate stood at 158%, suggesting existing clients increased spending by 58% in the last four quarters.

Moreover, Snowflake has estimated its total addressable market to touch US$248 billion by 2026, allowing it to grow sales at a consistent pace in the near term. In fiscal 2023, its sales stood at just over US$2 billion.

Blue-chip stocks such as Toronto-Dominion Bank

Investing in dividend-paying, blue-chip stocks is always a sound strategy, as you can benefit from a steady stream of passive income as well as capital gains. One such TSX stock is Toronto-Dominion Bank (TSX:TD), which currently offers a dividend yield of 4.7%.

In the last 20 years, TD stock has returned 905% to investors after adjusting for dividends, showcasing the resiliency of the banking giant. In this period, it has managed to navigate through several economic downturns, including the dot-com crash, the financial crisis, the COVID-19 pandemic, and the current bear market.

High dividend stocks such as Enbridge

Investors can also consider investing in high-dividend stocks such as Enbridge (TSX:ENB). An infrastructure giant, Enbridge offers you a dividend yield of 6.7%, which is quite tasty.

In the last 28 years, Enbridge has increased its dividends by 10% annually, which is remarkable for a cyclical company. A majority of its cash flows are backed by inflation-linked, long-term contracts, making the company relatively immune to fluctuations in commodity prices.

In recent years, Enbridge has also expanded its base of renewable energy assets, and this segment now accounts for 3% of adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).

Undervalued growth stocks such as Neighbourly Pharmacy

Undervalued growth stocks such as Neighbourly Pharmacy (TSX:NBLY) have the potential to deliver game-changing returns over time. Part of a recession-resistant sector, Neighbourly Pharmacy is focused on acquiring retail pharmacies in underserved Canadian regions.

The stock is priced at one times 2024 sales and 27 times forward earnings, which is very reasonable for a quality growth stock. Further, its improving profit margins also allow NBLY to pay shareholders an annual dividend of $0.18 per share, indicating a yield of 0.9%.

Analysts tracking NBLY stock expect shares to surge over 40% in the next 12 months.

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 Aditya Raghunath has positions in Enbridge. The Motley Fool recommends Enbridge and Snowflake. The Motley Fool has a disclosure policy.

More on Tech Stocks

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

NVIDIA’s Historic Stock Split: Too Late to Invest?

Open Text Corp (TSX:OTEX) is a Canadian AI stock that uses NVIDIA (NVDA) chips.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

“Goldilocks Conditions”: How AI Adoption Is Fuelling Stock Market Gains

Conditions look just right for the "Goldilocks Effect," and AI stocks are fuelling the way. But this could be the…

Read more »

Shopping and e-commerce
Tech Stocks

Why Shares of Shopify Are Powering Higher

After analysts issue upgrades, Shopify stock is climbing back from its double-digit decline after its first-quarter earnings release.

Read more »

Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow 

Shopify stock fell 25% after reporting disappointing guidance. Should investors buy the dip and hold the stock for the long…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

3 Canadian Growth Stocks I’d Buy Under $30

These under $30 Canadian growth stocks are well-positioned to capitalize on mega trends such as e-commerce, the electrification of vehicles,…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why This Tech Stock Just Jumped 18%

This tech stock just saw shares surge after announcing it was being acquired, but more growth could still be in…

Read more »

Group of people network together with connected devices
Tech Stocks

Prediction: My 2 Top TSX Stocks to Beat the Market in 2024 and Beyond

Looking for stocks set to beat the market in 2024 and well beyond? Here are two tech stocks set to…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer TSX Stocks I’d Buy Right Now Without Hesitation

Three TSX stocks that continue to overcome massive headwinds and beat the market are no-brainer buys right now.

Read more »