If there’s a single word that defines the market in 2023, it’s volatile. Fortunately, that market volatility means some top stocks can be bought at a discount right now.
Here’s a look at those top stocks to buy, even if you only have $1000 to invest.
A top stock, with a great defense
One of the top stocks to buy right now is also one of the most defensive stocks on the market, Fortis (TSX: FTS). For those who are unfamiliar with the stock, Fortis is one of the largest utilities in North America.
Fortis boasts 10 operating regions across Canada, the US, and the Caribbean.
The regulated nature of Fortis’ business means it can generate a stable revenue stream, invest in growth, and pay dividends. As of the time of writing, that dividend works out to a respectable 4.35% yield.
Fortis has also provided investors with an incredible 50 consecutive years of annual dividend increases, and shown no signs of discontinuing that tradition.
For prospective investors with $1000 to invest, it works out to 18 shares, which is a great starting point for a long-term portfolio.
How about a big bank stock?
Canada’s big banks are often noted as some of the best long-term investments on the market. There’s a good reason for that view as the banks offer stable revenue, serious growth potential, and the juicy quarterly dividend.
One bank that investors looking at top stocks to buy should consider is Canadian Imperial Bank of Commerce (TSX: CM). CIBC is one of the smaller big banks, but that smaller size comes with a big opportunity.
CIBC’s larger domestic mortgage book (compared to its peers) has made it a more volatile target over the past year. As such the stock is down an incredible 20% over the trailing 12 months. This makes it an excellent opportunity for investors to pick up a great stock at a huge discount.
As of the time of writing, CIBC trades near its 52-week low and boasts a P/E ratio of just 9.8. That discount has also inflated the bank’s dividend. That yield currently stands at 7.22%, which is the highest among its big bank peers.
For those investors looking for top stocks to buy with just $1,000, that translates into nearly 21 shares. That’s not enough to retire on but it is a great start to a future portfolio. And thanks to that inflated dividend and discounted share price, a $1,000 investment is enough to purchase another share just from the reinvestments.
Here’s an energy-sector titan every investor needs
Another one of the top stocks to buy right now is Enbridge (TSX: ENB). Enbridge is a true energy infrastructure behemoth. The company boasts a massive pipeline network, a growing renewable energy portfolio, and the largest natural gas utility on the continent.
Those segments combined make Enbridge a well-diversified stellar option for any investor to consider. But what really sets Enbridge apart is the defensive appeal of its portfolio and stellar dividend.
Enbridge’s pipeline network is one of the best defensive moats on the market. Not only does Enbridge operate the largest and most complex pipeline system on the planet, it also hauls massive amounts of crude and natural gas.
To illustrate that volume, consider this. Enbridge hauls nearly one-third of all North American-produced crude. The company also hauls one-fifth of the natural gas needs of the entire U.S. market.
And that’s not even the best part. The amount that Enbridge charges for the use of its vast pipeline network is not based on the volatile price of commodities. This means that Enbridge has some protection against the volatile price of oil.
That’s one of the reasons why Enbridge boasts one of the best-paying dividends on the market. As of the time of writing, that yield works out to an incredible 8.04%. The company has also provided investors with annual upticks for three decades.
In other words, Enbridge is one of the top stocks to buy right now and hold for decades.
