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

Some of the best TSX stocks to buy right now can provide juicy income and growth potential for years. Here are several to consider in December.

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Finding the right investments for your portfolio is something that all investors struggle with at one point or another. Fortunately, the market gives us plenty of options to buy some of the best TSX stocks to invest in — coincidentally, some of the best TSX stocks to invest in right now.

Start with a great long-term pick

One of the main objectives of any investor is to establish a well-diversified portfolio of investments. That portfolio needs to include some defensive picks that can provide both income and growth for the long term.

One such example to consider is Fortis (TSX:FTS). Fortis is one of the largest utilities in North America. The company boasts 10 operating regions located across Canada, the United States, and the Caribbean.

Those facilities provide Fortis with a recurring and stable source of revenue. That revenue stream allows the company to invest in growth and pay out a very handsome dividend. As of the time of writing, that dividend works out to an impressive 4.35% yield.

And that’s not all. Fortis also provides investors with a healthy annual uptick to that dividend. In fact, Fortis has provided a generous annual uptick to that dividend for an incredible 50 consecutive years. Fortis has plans to continue that cadence through the next few years while also continuing to invest in growth.

That fact alone makes Fortis one of the best TSX stocks to invest in right now.

Banking on growth

It would be nearly impossible to mention a list of the best TSX stocks to invest in without mentioning at least one of Canada’s big banks. The big bank that investors should consider looking at right now is Canadian Imperial Bank of Commerce (TSX:CM).

CIBC isn’t one of the largest of the big banks; it’s one of the smallest. As a result, CIBC has a much smaller international footprint than its peers. That also means that CIBC’s domestic mortgage book is larger when compared to its peers.

That risk, in a year filled with rising interest rates, has put pressure on the banks and more so on CIBC. As a result, the share price has dipped 14% over the prior two-year period.

But it’s not all bad news.

Canada’s big banks have historically fared much better than their American peers during times of financial volatility. In other words, long-term investors can expect not only CIBC to recover from its current lows but also to move into a position of growth.

That part is already evident. The stock is recovering nicely from its lows and has already surged 14% in the past month.

In terms of a dividend, CIBC boasts a quarterly payout that carries a yield of 5.91%. For income-seeking investors looking for the best TSX stocks to invest in, that yield is hard to ignore.

Energize your portfolio

Another one of the best TSX stocks to invest in right now is Enbridge (TSX:ENB). The energy sector behemoth operates the largest and most complex pipeline network on the planet. And while that pipeline network generates the bulk of its revenue, Enbridge also posts a massive natural gas utility and a growing renewable energy segment.

In short, Enbridge is a well-diversified defensive pick that would do well in any portfolio.

Turning to income, Enbridge really shines. The company pays out a quarterly dividend, which currently works out to an insane yield of 7.88%. This means that investors who are looking for some of the top TSX stocks to buy and purchase 104 shares for under $5,000.

That’s not enough to retire on, but it is enough to grow your investment by more than a few shares every year through reinvestments.

Oh, and like Fortis and CIBC, Enbridge continues to provide investors with healthy annual upticks to that dividend.

The best TSX stocks to invest in right now

No stock is without some risk, and that’s why the importance of diversification cannot be stressed enough. Fortunately, all three stocks mentioned above offer defensive appeal, growth potential, and very juicy yields.

In my opinion, one or all of the above stocks belong as part of any well-diversified portfolio.

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 Demetris Afxentiou has positions in Enbridge and Fortis. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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