The TSX today continues to climb, rising past the $20,000 mark for the first time since September of this year. While we’re not out of the woods yet, it seems as though some analysts believe the elusive soft landing may be in our future.
With that in mind, there are some top stocks that investors should consider buying while they’re still a deal. So if you have $3,000 on hand, these are the stocks to buy on the TSX today.
For the first $1,000, I would still consider some of the dividend stocks that are on sale these days. You can grab a high dividend yield while shares are down. However, I wouldn’t necessarily go with the highest yield you can find. Instead, you want a company that offers a great yield, as well as a practical guarantee of returns.
For that, I would look to top stocks in the banking sector, specifically Canadian Imperial Bank of Commerce (TSX:CM). CIBC stock remains one of the most beaten down of the banking stocks. Shares are down 16% in the last year, with the company trading at 11 times earnings.
This follows the company reporting a huge earnings miss during the last quarter. So the next quarter should hopefully see an improvement. Meanwhile, you can grab CIBC stock for a major dividend of 6.53% as of writing. And as with past economic downturns, CIBC stock has surged back to 52-week highs within a year of hitting lows. So definitely pick up and hold this stock on the TSX today.
The second $1,000 should potentially go to a growth stock. Yet, it should be one that isn’t going to drop as investors look to take cash out and invest in other companies in a bear market. That’s why I would consider investing in a company such as Shopify (TSX:SHOP).
Shopify stock remains a strong performer this year, with shares up 75% in the last year alone. Yet, it’s still less than half of its all-time highs, still offering a pretty strong opportunity for investors. Shopify stock has also continued to focus on getting back to basics. After massive layoffs and the sale of its logistics business, the company is looking to focus back on ecommerce, with the addition of artificial intelligence (AI).
Yet, investors may once again get excited about the future of Shopify stock in a bull market. After all, its best week for sales is coming up, Black Friday to Cyber Monday. And with more cash on hand as inflation and interest rates flatten, we could see even more growth for Shopify stock.
For the last $1,000, I would look to a company that will provide protection should we enter another downturn. That could be this year, it could be 10 years from now. But no matter what, consider picking up a stock that’s going to protect you no matter what the market does.
Now, usually I would recommend Constellation Software (TSX:CSU). This is a top stock on the TSX today, and certainly if you can afford it go for it. But shares are over $3,000 right now. Therefore, go with Constellation stock’s spinoff of Topicus.com (TSXV:TOI).
Topicus stock is doing the same thing as Constellation, under its management, but in Europe. Therefore, you get a chance at major growth in the coming years, but with a focus on essential software needed for our everyday use. So that last $1,000 would certainly do well in the hands of Topicus stock. Especially as shares continue to climb, up 21% in the last year alone.