The Best TSX Stocks to Invest $7,000 in January 2024

Are you looking for TSX stocks to invest $7,000 in? Here are three top picks!

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I have a hunch this is just the first article you’ll be reading this year that talks about stocks you can invest $7,000 in this year. The reason that number should keep popping up throughout the year is because that’s the new contribution room limit given to Canadians for their Tax-Free Savings Accounts (TFSA). If you’ve already maxed out your TFSA prior to this year, it’s time to add new capital. If it’s your first time opening a TFSA, make sure you’re aware of your true limit.

In this article, I’ll discuss three of the best TSX stocks to invest $7,000 in January 2024.

A massive global stock

Shopify (TSX:SHOP) is the first stock that I think investors should consider buying in their TFSAs in January 2024. This company is a massive player in the global ecommerce market. It’s estimated that more than one million merchants currently use Shopify’s platform to power their online stores. Because of the breadth of Shopify’s offerings, it can cater to merchants of any size. That includes first-time entrepreneurs to large-cap enterprises like Netflix.

Once Canada’s largest company by market cap, Shopify had a very rough year in 2022. However, shareholders were rewarded for their confidence in the company the following year. In 2023, investors saw Shopify’s stock price gain 111%. Although some investors may feel like they’ve missed out on a massive opportunity, I’d argue the opposite. Shopify stock still sits far below its all-time high. With the global e-commerce industry continuing to grow over the coming years, Shopify could still be at the start of its story.

An underrated stock for your portfolio

Another stock you should consider investing in today is Alimentation Couche-Tard (TSX:ATD). This may be one of the most underrated companies in the country. One reason for that could be that Alimentation Couche-Tard operates a boring business, as some may say. However, its presence around the world is a lot bigger than you think. Alimentation Couche-Tard operates more than 14,000 convenience stores across 25 countries and territories. As the company grows, its investment profile becomes even more attractive.

In 2023, Alimentation Couche-Tard stock gained nearly 30%. That outpaces the broader market by more than four times. Over the past five years, this stock has gained 131%. With such strong recent performances to back this company, I think investors could hold shares of this stock for a long time and likely be happy with their decision.

A dividend stock worth holding

A TFSA is a great way to build wealth for your retirement. One way that you could take advantage of the tax-free nature of that account is by investing in dividend stocks. That could help you supplement your income or pension, depending on what stage of life you find yourself in. If I could only buy one dividend stock in my TFSA this year, I’d choose to invest $7,000 in Fortis (TSX:FTS).

Fortis is well known for its long history of raising its dividend. In fact, with a 50-year dividend-growth streak, it currently holds the second-longest streak of its kind in Canada. Being a utility company, Fortis can take advantage of a very predictable and stable source of revenue. With that, Fortis can easily allocate capital and plan for dividend raises much in advance of the actual payout. For example, this outstanding dividend stock has already announced plans to raise its dividend through to 2028.

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 Jed Lloren has positions in Fortis and Shopify. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool recommends Fortis and Netflix. The Motley Fool has a disclosure policy.

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