As the market continues to rally, with interest rate hikes looking like they might be behind us, investors are wondering about getting back in the market. The TSX today remains above $20,000, something that hasn’t happened since September of this year. And that could spell perhaps the beginning of a bull market.
But I would understand if you want to start slow with your savings. You’ve amassed some to put into investing but perhaps want to wait for other opportunities as well. So, if you have just $1,000 you want to put towards investing, then here are some choices I would go to first.
Canadian banks have been coming out with their earnings reports, and Royal Bank of Canada (TSX:RY) showed impressive signs of strength. Fourth-quarter results brought in $4.13 billion, up from $3.88 billion a year before. Further, it raised the dividend from $1.35 per quarter to $1.38. This came as the company reported a profit at $2.90 per diluted share for the quarter, up from $2.74 the year before.
Pretty much everything increased for RBC stock, with revenue totalling $13.03 billion for the quarter, up from $12.57 billion in 2022. Further, the bank’s provisions for credit losses jumped to $720 million from $381 million the year before.
RBC stock now looks like it’s in a strong financial position, with even more cash available through dividends. And it also looks to be one of the banks already showing signs of improvement. So, I would certainly consider it, especially with a 4.55% dividend yield as of writing.
Another great option for investors these days is TFI International (TSX:TFII) — especially in this improving market. TFI stock will likely continue to see further use of its fleet of trucks across North America. As inflation and interest rates relax, we’ll likely see more spending. And that spending will need more shipping.
While TFI stock has missed its earnings estimates in the last few years, management is confident in the pick up of the economy in the near future. For now, earnings during its most recent quarter saw operating income drop to $200.6 million from $318.4 million. Further, net income came in at $133.3 million compared to $245.2 million the year before.
Even so, TFI stock managed to approve an increase of its quarterly dividend by an incredible 14%! If that’s not future confidence, I don’t know what is. Investors can now latch onto a dividend yield of 1.2% as of writing.
Speaking of supply-chain demand, Magna International (TSX:MG) is another investment to consider these days. That comes as there is finally a pick-up in electric vehicle production. Further, with interest rates lower and inflation as well, consumers may finally be able to look for a car once more.
And that’s exactly what Magna stock is hoping for, as seen through its continued acquisitions and expansion. The company continues to set up warehouses and assembly lines across the country. Furthermore, Magna stock has also been creating partnerships to bring electronic components to its arsenal of products.
So, with a 3.43% dividend yield and shares up 12% in the last month or so, now could certainly be a good time to get back into Magna stock — especially while it trades at just 14.99 times earnings as of writing.