Sitting on Cash? These 3 TSX Stocks Are Great Buys

Are you looking for stocks to spend some money on? Here are three great TSX stocks to buy today.

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The stock market can be an excellent way for the everyday person to generate life-changing amounts of wealth. Given the plethora of information available to the average person today, success in the stock market has never more accessible. However, to achieve the kinds of success that investors strive for, it’s important to pick the right stocks, continue investing regularly for years, and remain educated in the companies you hold in your portfolio.

In this article, I’ll discuss three TSX stocks that could make great additions to your portfolio if you’re sitting on some cash.

Start with one of the best Canadian stocks

If you’re sitting on some cash, I think it would be a great idea to consider investing in Constellation Software (TSX:CSU). On the surface, this is a very expensive company to invest in. As of this writing, a single share would cost investors nearly $2,700. However, I think this is one of the best places to hold your money.

Constellation Software has been making investors richer for nearly two decades. The company held its initial public offering (IPO) in May 2006. Since then, Constellation Software stock has gained more than 14,600%. That means an investment of $10,000 made at its IPO would be worth more than $1 million today. With a gain of nearly 40% over the past year, I believe Constellation Software stock still has a lot of room to continue rewarding shareholders in the future.

This stock could appeal to all investors

Brookfield Renewable (TSX:BEP.UN) is the second TSX stock investors should consider buying today. As its name suggests, this company is a producer of renewable utilities. In fact, with a generation capacity of 25 gigawatts (GW), it operates one of the largest such portfolios in the world. Brookfield Renewable has another 110 GW of potential generation capacity at various points of construction. Upon the completion of those projects, Brookfield Renewable should be able to cement itself as a leader within its industry.

This is a very interesting stock to consider because of the capital appreciation and dividend growth that it offers. Since inception, Brookfield Renewable stock has generated an annualized return of about 15%. The TSX, for comparison, has generated an annualized return of 7% over the same period. In terms of its dividend, Brookfield Renewable has managed to increase its distribution at a compound annual growth rate of 6% over the past 11 years. Whether you’re in the market for the stock growth or the dividend, Brookfield Renewable may be for you.

One of my favourite stocks in the world

Finally, I believe Shopify (TSX:SHOP) would make a great addition to a stock portfolio today. The global e-commerce industry continues to grow, and Shopify is one of the companies leading the way. It provides merchants of all sizes with a platform and many of the tools necessary to operate online stores. Because of the wide range of solutions Shopify offers, it can cater to everyone from the first-time entrepreneur to large-cap companies.

Shopify shareholders have been on quite the rollercoaster ride over the past few years. From 2015 to 2021, Shopify stock gained more than 6,000%. However, when tech stocks across the globe crashed last year, Shopify wasn’t immune. It lost more than 83% of its value. However, since hitting its lowest point in 2022, Shopify stock has gained more than 130%. That was helped by its most recent earnings presentation, which pleased institutional investors. Still trading about 60% lower than its all-time high, I believe this is an unbelievable deal for investors today.

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 Jed Lloren has positions in Brookfield Renewable Partners, Constellation Software, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Renewable Partners and Constellation Software. The Motley Fool has a disclosure policy.

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