Got $500? 2 Top Canadian Stocks to Buy in December 2023

These two top Canadian stocks are doing well and might warrant a place in your self-directed portfolio before the year ends.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

If you are new to it, you might not think $500 is enough capital for a successful investing strategy. By identifying the right assets, you can grow your capital with even the smallest amount invested in the stock market. To do it successfully, one way is to invest in top-quality stocks that offer stability and long-term growth potential.

After considerable volatility throughout the year, the Canadian stock market appears to be gaining momentum again. Despite a November marked by a rising equity market, several high-quality TSX stocks still trade at attractive levels.

As the year ends, investor sentiment is improving, and there are several high-quality stocks available at discounted prices. When the bull market comes in, many of them can soar to greater heights while outperforming the broader market.

Today, we will look at two Canadian stocks with the potential to deliver market-beating returns in 2024.

Telus

Telus (TSX:T) is a $36.92 billion market capitalization Canadian telecommunications giant. Headquartered in Vancouver, it is one of the biggest telecommunications companies in the country, with several other subsidiaries in agriculture, healthcare, and other sectors. As of this writing, Telus stock trades for $25.31 per share, down by 12.96% from its 52-week high.

Considering how well its core mobile and internet services businesses in Canada have performed this year, the downturn is arguably overdone. After one of its subsidiaries saw its revenue decline, Telus reduced its financial guidance in 2023.

Additionally, the company also resorted to cost-cutting measures to improve its financial position. Despite weakness in one of its subsidiaries, Telus stock looks set to increase its consolidated revenue in 2023 by 9.5% compared to last year. It can be a good addition to your self-directed portfolio.

goeasy

goeasy (TSX:GSY) is a $2.32 billion market capitalization company that offers alternative financial services. Headquartered in Mississauga, goeasy operates three businesses that offer loans to subprime lenders.

As of this writing, goeasy stock trades for $139.57 per share, just below its 52-week high mark of $140.10 per share. Year to date, goeasy stock has outperformed the TSX by a massive margin. goeasy stock gained 31.77%, year to date. In the same period, the S&P/TSX Composite Index is up by just 4.79%.

After delivering market-beating returns, the company continues to perform well. goeasy is adjusting its affordability calculations, underwriting requirements, and credit thresholds across its different products to minimize the risk to itself.

Additionally, its growing loan originations, cross-selling opportunities, and omnichannel offerings can help it continue expanding its loan portfolio. Besides its immense capital gains, GSY stock pays its investors their quarterly distributions at a 2.75% dividend yield.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if goeasy Ltd. made the list!

Foolish takeaway

Between the high-yielding dividends from Telus stock and the growth potential of goeasy stock, these two companies can be excellent investments to consider for your portfolio. With the reliable dividend income from Telus stock, you can enjoy steady returns.

Due to the importance of subprime lending in today’s market, goeasy stock can grow shareholder value through capital gains. Additionally, its nine-year dividend-growth streak also makes it an attractive investment to consider.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

More on Dividend Stocks

The sun sets behind a high voltage telecom tower.
Dividend Stocks

Should You Buy Northland Power for its 5% Dividend Yield?

Northland Power stock trades 52% below all-time highs and offers shareholders a tasty dividend yield of 5% right now.

Read more »

TFSA and coins
Dividend Stocks

2 Top Stocks to Add to Your TFSA in February 2024

These two TSX stocks can be excellent holdings for your self-directed TFSA portfolio to inject stability and tax-free wealth growth.

Read more »

dividends grow over time
Dividend Stocks

Passive-Income Seekers: Invest $10,000 for $400 or More in Annual Income

Are you interested in generating passive income? Invest $10,000 for a hefty annual income!

Read more »

Canadian Dollars
Dividend Stocks

Want Decades of Passive Income? 3 Stocks to Buy Now

Want passive income that could last a lifetime? These three top Canadian dividend stocks have a good chance of delivering…

Read more »

Two seniors float in a pool.
Dividend Stocks

Retiring on Dividends: How Much Do You Need to Quit Work?

Canadians might need more than $1 million to quit work, but can still live comfortably in retirement with sustained dividend…

Read more »

Happy couple being attended by office worker at office
Dividend Stocks

New Investors: 3 Top Tips to Get You Started

New investors may be itching to get started, but first, ensure you are properly set up and do your research!

Read more »

A plant grows from coins.
Dividend Stocks

With a 7.9% Dividend, This TSX Stock Can Help You Make $1,975 Per Year

Make steady income with this high yield dividend stock. This Canadian corporation has increased its dividend for 29 years.

Read more »

grow dividends
Dividend Stocks

2 Dividend Stocks to Use as Building Blocks for Lasting Wealth

Dividend stocks that are raising their dividends over time could create lasting wealth for investors. Here are a couple of…

Read more »