If you’re new to investing and just starting out, now is one of the best opportunities to buy Canadian stocks all across the market while they trade undervalued.
It’s certainly easy to see why it could seem like right now is not ideal to start investing, since there is so much uncertainty in markets.
In reality, though, if you can focus on buying high-quality companies while they are cheap and committing to owning them for years, it’s actually the perfect time to buy some of the best stocks while they trade at discounts we haven’t seen in years.
If you’re looking for Canadian stocks to buy now, here are five of the best to consider today.
A utility stock for safety
First off, some of the first Canadian stocks you’ll want to consider when just starting out are highly reliable companies you can buy as core portfolio stocks, such as a company like Fortis (TSX: FTS).
Fortis is a massive utility stock with operations all across North America. It’s one of the lowest-risk stocks you can buy, which helps to protect your capital.
Furthermore, since it’s a dividend-growth stock, it also generates significant passive income and can help power long-term growth, which is why it’s an ideal stock to buy for the core of your portfolio and hold for years.
A top energy stock for dividends and growth potential
Having exposure to the energy industry is certainly important for Canadians, and one of the best and most simple stocks for new investors to buy is Freehold Royalties (TSX: FRU).
While most energy stocks can have complicated operations producing oil or gas, Freehold simply owns the land that other companies use for their production.
Therefore, because Freehold just collects a royalty, it’s a lower-risk energy stock with a much more straightforward business model.
In addition, since it’s constantly generating cash flow, it’s an ideal dividend stock that currently yields more than 7.9% today. And since it retains a tonne of capital, it’s constantly investing in future growth, which is why Freehold is one of the best Canadian stocks you can buy now and hold for years.
A top Canadian real estate stock
If you have a dream of owning a retail property one day but don’t have enough cash for a downpayment yet, a great stock to consider is Canadian Apartment Properties REIT (TSX: CAR.UN).
CAPREIT is the largest residential real estate investment trust (REIT) in Canada, owning over 55,000 rental units across Canada. Therefore, not only can you gain exposure to the real estate sector, but you can also learn a lot about the industry while you keep up to date with your investment in CAPREIT.
Furthermore, owning a residential real estate stock offers a tonne of advantages for Canadians. First off, you gain exposure to thousands of units spread out all across the country. You can benefit from the REIT’s leverage. You have a team of professionals that do all the work for you, and the REIT has historically kept its occupancy rate above 95%.
So, if you’re a new investor, Canadian Apartment Properties is certainly one of the top stocks to consider adding to your portfolio.
An infrastructure stock for reliability and passive income
Another stock that’s a low-risk, low-volatility stock and is similar in a lot of ways to Fortis is Brookfield Infrastructure Partners (TSX: BIP.UN).
Brookfield is highly defensive as it owns infrastructure assets all over the world. Furthermore, much like Fortis, it also pays an attractive yield and aims to increase that distribution every single year.
Brookfield is also constantly recycling capital and investing in new projects leading to tonnes of long-term growth potential.
If you’re a new investor and looking to build an ultra-safe portfolio, Brookfield is certainly one to consider.
A top Canadian value stock to buy while it’s cheap
Lastly, with Cineplex (TSX: CGX) finally recovering from the pandemic this year, it’s one of the best value stocks you can buy now.
Many stocks are cheap in this environment, but Cineplex stock is extremely cheap, currently trading at just 8.8 times its expected earnings next year.
Therefore, while this Canadian value stock still trades below $10, it’s easily one of the best buys that new investors can make today.
