The TSX today continues to fluctuate very close to the $22,000 mark, with news on inflation helping raise the index further. Instead of reaching the 3.1% inflation rate expected for February, we went down by 0.1% to 2.8%. This was great news, and perhaps led some investors to wonder if it’s not time to get back into the markets.
While nothing is certain, even a small stake such as $2,000 could help you achieve greatness not just in 2024, but beyond. For that you’ll want a mixture of dividends and growth. And there are two stocks I would certainly consider for this in 2024, as well as your future investments. So let’s get into these two stocks to consider right now.
CIBC
When it comes to investing, some of the best options for long-term holders are the Big Six Banks. But above them all, it looks like Canadian Imperial Bank of Commerce (TSX:CM) is one of the best options out there. Despite performing quite poorly over the last year or so.
Of course, this comes down to its overexposure to the housing sector. This will likely continue to hamper earnings as the company deals with loan losses. However, if you’re a long-term investor, you should be drooling over its share price right now.
That’s because CIBC stock is well known for having a high dividend yield, currently at 5.36%. This has already come down from earlier this year as shares have climbed higher. In fact, shares of CIBC stock are up 16.5% in the last year, yet still trade at just 10.3 times earnings. Meanwhile, that dividend is still higher than its five-year average of 5.2%. So overall you’re getting a great deal for a superb dividend.
CIBC stock has proven in the past that it can come back from 52-week lows during a downturn and hit former highs within one year of those lows. So if you want even more growth, CIBC stock has a strong presence and is likely to see a turnaround quite soon. With dividends while you wait.
Topicus
On the opposite track, there are actually a few tech stocks that investors can consider for long-term gains. One of those is Topicus (TSXV.TOI), a spin off of software acquisition powerhouse Constellation Software (TSX:CSU).
If you’ve read my work before, you’ll know exactly why I like Topicus stock. The company is like a brand new CSU stock, with a focus on Europe. The same management team, the same goals, just in a new location. And this has proven to help drive growth both for Topicus stock, as well as CSU stock.
The company has done quite well in the last year, with shares up 35% in the last year alone. This strong growth trajectory has continued, unperturbed by the rest of the market, with analysts expecting this trend to continue for the near and distant future.
The driver is its acquisition strategy to buy up essential software businesses across Europe. A focus on the essential software market with mission-critical software has been successful in the past, and will continue in the future. Especially for businesses that rely on these software programs for daily operations.
Overall, Topicus provides strong recurring revenue as well as a stable growth strategy. So if you’re looking to get in on a CSU stock at basement prices, this is certainly one to consider.
