The Canadian stock market has tried hard this year to return to all-time highs. Many individual TSX stocks have rebounded well in 2023, but the market as a whole has struggled to maintain momentum. The S&P/TSX Composite Index has been on three runs of 5% or more in 2023, yet is barely positive on year. The index continues to trade close to 10% below all-time highs that were set in early 2022.
If you can handle the market’s volatility, now could be an excellent time to be investing in stocks. The TSX remains full of discounted companies to choose from.
Investing for the long haul
If you plan on investing in stocks today, I’d urge you to consider your time horizon. It’s anybody’s guess as to where the market will be trading at the end of the year, or how much longer this volatility will last. As a result, investors looking for short-term gains right now have their work cut out for them.
Long-term investors, on the other hand, don’t need to be as concerned with the short-term noise in the market. What’s much more important is choosing the right company to invest in. And just as importantly, patiently holding those shares for decades.
With that in mind, I’ve reviewed two dependable stocks that both happen to be trading at bargain prices today.
For anyone who’s in the early stages of building their investment portfolio, these are two top stocks to build around.
TSX stock #1: Toronto-Dominion Bank
There are several very good reasons for owning one of the major Canadian banks. Dependability and passive income are two of the main reasons why I’d have one of the Big Five on my watch list.
At a market cap that’s nearing $150 billion, Toronto-Dominion Bank (TSX:TD) is the second-largest bank in the country. TD Bank also boasts a growing presence in the U.S., which currently ranks in the top 10 based on total asset size.
The Canadian banks are the perfect place for a passive-income investor to be putting money to work right now. The Big Five own some of the longest payout streaks on the TSX. And with the major banks all currently trading below all-time highs, yields have shot up this year.
At today’s stock price, TD Bank’s dividend is yielding just shy of 5%.
TSX stock #2: goeasy
Investors who are looking to add some growth to their portfolios don’t want to miss out on this discount.
goeasy (TSX:GSY) has quietly been one of the top-performing Canadian stocks over the past decade. Shares took a massive hit in 2022, dropping 40%. Still, the growth stock is up a market-crushing 300% over the past five years.
As a consumer-facing financial services provider, the high interest rate environment has understandably hurt demand for goeasy. And with rates remaining far above pre-pandemic levels, investors may need to be patient while the stock gets back on track. But over the long term, as rates eventually begin declining, there’s no reason to doubt goeasy’s ability to return to its market-beating ways.
This is not a growth stock that goes on sale often — especially not like this. Don’t miss your chance to load up on one of the top growth stocks around.