As the TSX Composite Index continues on its upward trend in 2024, certain sectors are growing. So many of us might think it’s time to sell, take our returns, and go elsewhere. Yet I would urge you to reconsider when it comes to investing in these two growth stocks on the TSX today.
Both of these companies are already in stable sectors, while proving their worth again and again. So if you have just $2,000 to spend, I would put it into these growth stocks on the TSX today.
Goeasy stock
When it comes to growth stocks, there haven’t been many that have done as well as goeasy (TSX:GSY) on the TSX today. Goeasy stock is currently up by 50% in the last year alone. And yet, the company potentially has even more room to grow.
The non-prime lender has seen a surge in loan originations even during this high interest rate and inflationary environment. This likely comes from Canadians seeking out the best price possible for debt and loans that are coming due.
Furthermore, analysts are confident this should continue in the future, even amidst new regulations set to come down this summer. These would change the annual percentage rate (APR) allowed by lenders to 35%. The company has already been moving over to this method, and believes it will cut out those loaning at higher levels.
Meanwhile, the stock still trades at a high value. Shares are down from 52-week highs of $180, providing a potential upside of at least 10% in the near future. But to reach all-time highs it has even more room to grow.
So GSY stock now offers a dividend yield at 2.84%, which was recently boosted, with a payout ratio of 26.5%. This leaves room for more buybacks, more dividend increases, and more investments. So even though there are decades behind this stock, it’s set up for even more growth in the future.
Topicus stock
Another clear winner among growth stocks has been Topicus (TSXV:TOI). Topicus stock is a spin off from Constellation Software (TSX:CSU). The company does the same as its parent company, buying up software companies on the cheap and putting them back out after they’ve been refurbished.
And the company, under Constellation’s management, has done quite well. Acquisitions are up, as are revenue, investments, all of it. The only difference? It operates in Europe. So if you’re a CSU investor, there should be no reason that you’re not investing in Topicus stock considering it’s simply providing more diversification.
Given CSU stock’s track record, this investment is like getting in on the ground floor back almost 20 years ago. And already this year, Topicus stock has seen shares grow by 35% as of writing. Yet again, you could still see it rise even further to hit 52-week highs of $129 right now.
And while the company doesn’t offer a dividend right now, this growth stock is using cash wisely with those acquisitions. Yet should it continue in CSU stock’s footsteps, we could see a dividend added in the future. So this is certainly another growth stock to continue at least watching, if not investing in with that $2,000 on the TSX today.
