The stock market has shown resilience and trended upward over the past year, even amid recession concerns. Additionally, moderating inflation and anticipated rate cuts are expected to further boost equity markets in 2024 and beyond.
If you plan to invest $50,000 or even less in equity, it’s wise to choose a diversified basket of stocks with strong fundamentals and solid growth prospects. This approach helps reduce risk and gain exposure to high-growth sectors with secular tailwinds.
With this backdrop, here are the five best Canadian stocks to buy now with $50,000.
goeasy
goeasy (TSX: GSY) stock is a must-have in your portfolio to create enduring wealth. Its ability to consistently grow its revenue and earnings at a high double-digit rate and commitment towards enhancing shareholders’ value through higher dividend payments acts as a catalyst.
The company benefits from its leadership in the Canadian subprime lending market and a large TAM (total addressable market). Furthermore, goeasy’s omnichannel offerings, geographical expansion, diversified funding base, and solid underwriting capabilities position it well to generate stellar earnings in the coming years, which will likely boost its share price and future dividend payments.
Brookfield Renewable Partners
Adding a few renewable energy stocks to your portfolio is a wise move, given the sector’s strong growth prospects and increasing adoption of clean energy. Brookfield Renewable Partners (TSX: BEP.UN) stands out as a top stock in this sector, poised to capitalize on energy transition opportunities. Its highly diversified asset base and significant installed capacity position it well to benefit from the rising demand for green energy.
Moreover, its highly contracted portfolio and inflation-indexed revenue provide visibility and stability to its cash flows. The company’s 34,000 megawatts of operating renewable power capacity and approximately 157,000-megawatt development pipeline position it well to grow its funds from operations (FFO) at a double-digit rate. The expansion of FFO will likely bolster its share price and enable the company to offer higher dividend payments.
Constellation Software
Investors should add a few tech stocks to their portfolio to significantly enhance overall returns in the long term. Constellation Software (TSX: CSU) is one such high-quality Canadian tech stock to consider. Thanks to its diversified portfolio and ability to offer tailored solutions, Constellation Software remains well-positioned to capitalize on evolving technology and demand trends.
Constellation Software will also likely benefit from its broad portfolio of software businesses and large customer base. Its strategy of consistently acquiring and integrating small- to mid-sized vertical market software (VMS) companies will further drive its financials and bolster CSU stock in the long term.
Shopify
Within the tech space, one could also consider adding Shopify (TSX: SHOP) stock. This leading e-commerce company is well-positioned to capitalize on the shift in selling models towards omnichannel platforms. This would enable Shopify to deliver durable revenue growth and generate significant returns in the long term. Shopify’s discounted share price supports the bull case, which presents a good buying opportunity near the current levels.
The company’s ability to grow its gross merchandise volumes will likely drive its top line. Moreover, its strategic pivot towards an asset-light business model augurs well for long-term growth. Additionally, Shopify’s focus on improving its take rate, launching new products, integrating artificial intelligence (AI) technology into its products, and prioritizing profitable growth bodes well for its prospects.
Dollarama
Last but not least, investors could add a few high-quality defensive stocks to their portfolios for stability and growth. Dollarama (TSX: DOL) stands out as the top stock offering growth, income, and stability. This discount retailer consistently generates solid revenue and earnings regardless of economic cycles. Further, Dollarama also enhances its shareholders’ value through uninterrupted dividend payments.
Dollarama’s value pricing strategy could continue to drive traffic and sales in the future. Moreover, product expansion, an extensive and growing store base, and a direct sourcing strategy will likely support the company’s financials and share price.
