The Best TSX Stocks to Invest $5,000 in December 2023

The last month of the year is an excellent time to shop for stocks on the TSX. One earnings season just finished, and trading has been brisk lately. If you have $5,000, purchase volume leaders Canadian Imperial Bank of Commerce (TSX: CM) and Kinross Gold (TSX: K).

The Big Bank is a no-brainer buy and a generous dividend payer, while the gold producer can be your safety net. Both stocks are the best buys in December 2023.

Wise buy

CIBC has gained momentum since its earnings release on November 30, 2023. At $57.70 per share, the bank stock is back in positive territory (+10.4%). Moreover, the dividend yield is an eye-popping 6.24% after the Board approved a 3.4% dividend hike.

In Q4 fiscal 2023, revenue declined 0.1% to $5.8 billion versus Q4 fiscal 2022, while net income increased 3.7% year over year to $1.5 billion. CIBC raised its provision for credit losses (PCL) by 24% to $541 million. For the full fiscal year (12 months ended October 31, 2023), net income dropped 23% to $5 billion from a year ago.

CIBC’s President and CEO, Victor Dodig, said, “In a more fluid economic environment in 2023, our bank delivered solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses.”

Dodig adds that the bank will enter the new fiscal year with a robust balance sheet and strong credit quality. Management intends to simplify the bank and focus on driving growth, particularly in the mass affluent and private wealth segments. Capital Markets and Direct Financial Services was the strongest of the four core business segments in fiscal 2023.

Besides the positive financial results in Q4 and the full fiscal year, CIBC’s dividend history remains a primary consideration for income investors. The bank’s dividend track record is now 155 years.

Top-tier gold producer

As of this writing, the basic materials sector (-5.75%), where mining stocks belong, is the second-worst performer after utilities (-6.45%). However, Kinross Gold outperforms the sector and the broader market (+4.59%). At $8 per share, investors are up 48.8% year-to-date and partake in the 2.03% dividend yield.

The $9.8 billion senior gold mining company operates mines and projects in Canada, Brazil, Chile, Mauritania, and the United States. In August this year, Kinross broke ground in Alaska with the Manh Choh project near the Native Village of Tetlin. During the commemorative groundbreaking ceremony, its president and CEO, Paul Rollinson, said, “Manh Choh is a key part of Kinross’s future.”

Regarding the company’s year-to-date performance, Rollison said, “It has been a great nine months at Kinross, and we have delivered another strong quarter.” In the nine months ending September 30, 2023, gold production increased 18% to 1,606,507 gold equivalent ounces.

Moreover, net earnings ballooned 154.5% to $350.9 million compared to the same period in 2022. Other positive factors for Kinross are debt reduction, expansion projects, and progress in its pipeline.

Formidable combo

A Big Bank and a top-tier gold producer form a formidable combination in a stock portfolio. CIBC and Kinross Gold should deliver healthy returns over the long run.