Taking control of your finances can be one of the greatest decisions of your life. By making the right moves financially, the everyday person could put themselves in a position to experience a very comfortable retirement. In my opinion, the stock market is the greatest way to achieve financial independence. Fortunately, the Canadian stock market offers a plethora of great companies to invest in.
In this article, I discuss three of the best TSX stocks to invest in today.
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Start with this TSX stock
If you’re only interested in one TSX stock to add to your portfolio today, I would suggest considering Constellation Software (TSX: CSU). This may be one of the greatest Canadian stocks around, and the everyday person might have never heard of it. That’s because this company’s business isn’t consumer-facing. It mainly operates in the background, acquiring vertical market software businesses and helping those acquisitions become exceptional business units.
Since its initial public offering (IPO), Constellation Software stock has gained more than 15,000%. Even though the stock has already gained so much since 2006, I believe investors could still reap massive rewards here. Over the past year, Constellation Software stock has gained more than 43%. That outpaces the TSX by a large margin and suggests that the stock could continue its excellent run for many more years.
This company helped build the country
There aren’t many public companies that can claim that they’ve helped Canada become the country it is today. However, that’s a claim that Canadian National Railway (TSX: CNR) could make. Founded in 1919, this company operates nearly 33,000 km of track. Its rail network spans from British Columbia to Nova Scotia. What makes an investment in Canadian National so intriguing is that there currently isn’t a viable way to transport large amounts of goods over long distances if not via rail. That should keep this company relevant for years to come.
Canadian National Railway should interest investors because of its reliability. As mentioned previously, the railway industry is still heavily relied upon for its ability to transport goods across the country. That gives companies like Canadian National a very steady business. The company has managed to translate that into a very stable dividend that has grown at a compound annual growth rate of more than 10% over the past 26 years.
One of my favourite stocks
There are many investors that have decided to move on from Shopify (TSX: SHOP); however, I think it’s still a great stock to hold in a portfolio today. This company continues to be one of the largest players in the global e-commerce industry and it has every opportunity to continue growing in the future.
Shopify stock has been on quite a rollercoaster ride since its IPO in 2015. At one point, this was the biggest company in Canada. Unfortunately, it wasn’t able to keep that ranking, as Shopify stock fell more than 80% in 2021 and 2022. Since then, however, Shopify stock has shown signs of a recovery, gaining more than 100% since last October. With its founder still leading the company, and the e-commerce industry continuing to increase its penetration of the global retail space, I believe Shopify could become much bigger than it is today.
