Canadians don’t need to break the bank to be investing today. The TSX is loaded with top-quality stocks trading at must-buy prices.
This well-rounded basket of companies can provide investors with a mix of growth, passive income, and stability. Not only are all five stocks currently trading below $500, but Canadian investors can own the entire basket for less than that right now.
Descartes Systems
Descartes Systems (TSX: DSG) is one of the few Canadian tech stocks that has set new all-time highs in 2024. Shares peaked at the end of January and are not far off from setting new highs again this year.
The $10 billion company has been a dependable market beater in recent years. The stock has quietly crushed the market’s returns over the past five years, with shares up more than 150%.
Don’t let the fact that shares are trading near all-time highs keep you from investing today. Descartes Systems is not a growth stock that goes on sale often, so you may be waiting a while if you’re hoping for a discounted price.
Shopify
Investors hoping to take advantage of Shopify’s (TSX: SHOP) fire-sale price may want to act quickly. The tech giant is up 70% over the past year and is now down only 50% from all-time highs that were set in late 2021.
Owning shares of Shopify is not for the faint of heart. It’s been an incredibly volatile past several years, and I wouldn’t expect that to change anytime soon. The reason for enduring such extreme levels of volatility is for the chance to earn market-crushing returns.
Shares of Shopify are up more than 300% over the past five years.
Fortis
If you plan on investing in high-growth companies like Descartes Systems and Shopify, owning a few dependable dividend stocks like Fortis (TSX: FTS) in your portfolio would be a wise idea.
Utility stocks tend to be low-volatility investments, as well as excellent passive-income drivers. Fortis certainly fits that description.
At today’s stock price, the utility stock’s dividend is yielding 4.5%.
Sun Life
The financial sector is another area of the Canadian stock market to look for high-yielding, dependable investments.
Sun Life (TSX: SLF) is yielding 4.3% at today’s stock price. It’s not the highest yield dividend investors can find on the TSX, but the company is amongst the most dependable around.
Sun Life has been a stalwart in the insurance and wealth management space for decades. The stock’s strong market position has led to many years of market-beating returns, on top of the dividends going out to shareholders.
Brookfield Renewable Partners
The last pick on my list offers investors a top dividend and a chance to earn market-beating returns. Shares are also trading at an opportunistic discount right now.
The renewable energy sector as a whole has been on the decline since early 2021, which partially explains why Brookfield Renewable Partners (TSX: BEP.UN) is trading close to 50% below all-time highs. Still, shares have outperformed the S&P/TSX Composite Index over the past five years, and that’s not even including dividends.
While the recent decline in price has hurt shareholders in the short term, it has sent the dividend yield surging. At today’s stock price, the dividend yield is above 6%.
Good luck trying to find another stock on the TSX that has delivered market-beating returns over the past five years that’s also currently yielding above 6%.
