Being new to stock market investing can be overwhelming, especially during volatile market conditions. As of this writing, the S&P/TSX Composite Index’s movement indicates signs of recovery. However, the Canadian benchmark index is lower than its 52-week high.
If you are beginning your journey as a stock market investor, the time is ripe for several compelling investment opportunities.
Canadian Pacific Kansas City (TSX:CP) went from being a boring railway stock to a more exciting prospect last year. Its US$31 billion acquisition of Kansas City Southern across the border was an exceptional move.
With this strategic acquisition, Canadian Pacific became the only railway in North America running from Canada to the U.S. and Mexico.
As of this writing, CP stock trades for $104.22 per share. Despite the uptick from its 52-week low of $90.84, CP stock trades considerably lower than its $112.96 52-week high. The British Columbia port workers’ strike resulted in an estimated $80 million loss of revenue.
However, the acquisition’s completion in April, and the management’s determination to recover the losses warrant considering the stock for a beginner investment portfolio.
Bank of Montreal (TSX:BMO) is another excellent stock to consider as a beginner investor. The $81.86 billion market capitalization Canadian multinational investment bank and financial services company is one of the Big Six Canadian banks.
With its acquisition of the Bank of the West across the border, BMO has established a strong foothold in California and the Midwest.
As of this writing, BMO stock trades for $114.19 per share. Like its peers in the Big Six, BMO stock is typically regarded as a safe investment. Its recent quarterly earnings report reflects its reliability in this regard.
BMO stock generated $1.45 billion in net income during the third quarter (Q3) of 2023 compared to $1.36 billion in the same period last year. At current levels, it pays its shareholders at a juicy 5.15% dividend yield.
NorthWest Healthcare Properties REIT (TSX:NWH.UN) can be another excellent beginner pick if you want stability and growth potential in your portfolio. The real estate investment trust (REIT) operates in a niche area.
The $1.64 billion market capitalization REIT owns a geographically diversified portfolio of properties in the healthcare sector. Due to most of its rental income being backed by governments, it boasts a high-quality and defensive portfolio.
As of this writing, NWH.UN stock trades for $6.73 per share. It has over 2,000 tenants and a 96% occupancy ratio.
Paying its shareholders at a massive 11.89% forward annualized dividend yield, NorthWest Healthcare Properties is an attractive prospect for income-seeking investors to consider adding to their self-directed portfolios.
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Creating a well-balanced portfolio offering reliable dividends, capital gains potential, and risk mitigation is the key to achieving success as an investor. CP stock, BMO stock, and NorthWest REIT offer all three to investors, despite recent macroeconomic challenges.
By carefully considering how much to invest, allocating capital to these TSX stocks can deliver solid returns to investors in the coming years.