Beginner Investors: 5 Top Canadian Stocks for 2024

Five Canadian stocks are suitable and profitable investment options for first-timers in 2024.

Young Boy with Jet Pack Dreams of Flying

Source: Getty Images

All investors have a risk tolerance, but it shouldn’t be the only consideration when entering the stock market for the first time. Beginners should heed the advice of Warren Buffett. The GOAT of investing suggests, “Never invest in a business you cannot understand.”

There are plenty to choose from on the TSX, although five Canadian stocks are suitable for novice investors. Besides the relatable, if not easy-to-understand businesses, the share prices are relatively low, except for a blue-chip stock above $20. You can make money through price appreciation or earn extra income from dividends.

Healthcare facilities

NorthWest Healthcare Properties (TSX:NWH.UN) rose to prominence at the height of the global pandemic in 2020. The $1.2 billion real estate investment trust (REIT) is a global real estate investor and asset manager focused on healthcare properties such as medical office buildings, hospitals, and clinics. Recently, it has added education, research, and life sciences.

REITs are like regular stocks so you can buy and sell them on the TSX. NorthWest Healthcare trades at $4.68 per share and pays a generous 7.7% dividend. The payout frequency is monthly.

IT services and cloud solutions

Converge Technology Solutions (TSX:CTS) is a software-enabled IT and cloud solutions provider. The $873.4 million company delivers artificial intelligence (AI), advanced analytics, application modernization, and cloud platforms to companies in North America and Europe.

Other Converge services include cybersecurity, digital infrastructure, and digital workplace offerings. This tech stock is also a rare gem, because at $4.37 per share, it pays a modest 1.4% dividend.

Full-service restaurants

Boston Pizza Royalties Income Fund (TSX:BPF.UN) earns revenue from the franchise system sales of the Boston Pizza brand and restaurants in the royalty pool. At $15.99 per share, you can partake in the $340.3 million fund’s 8.5% dividend (monthly payout).

The pizza business is profitable, evidenced by the average $32.5 million net income in the last three years. In Q1 2024, net and comprehensive income rose 27% to $8.5 million compared to Q1 2023. The impressive financial results underscore Boston Pizza’s resiliency.

Gig economy

Payfare (TSX:PAY) operates in the gig economy, projected to grow by more than 15% through 2031. Market analysts see this tech stock as a potential investment for future growth. The $294.4 million financial technology company offers digital banking and instant payment solutions to the next-generation workforce.

Top gig work platforms and marketplaces such as Uber, Lyft, and DoorDash are partners that provide gig workers with faster payouts. Expect Payfare to scale new heights following the record revenue of $186 million in 2023. Net income reached $13.1 million after three consecutive years of losses. PAY trades at $6.14 per share.

Essential communications services

TELUS (TSX:T), a $30.7 billion large-cap stock, is Canada’s second-largest telecommunications company. If you invest today ($20.32 per share), you can partake in the 7.5% dividend. This 5G stock is a dividend aristocrat owing to 19 consecutive years of dividend increases. I don’t need to expound further because everyone knows that TELUS provides essential communications services.

Invest wisely

Stock investing has risks, but it pays to understand the business before investing. TELUS, NorthWest Healthcare, and Boston Pizza have established businesses in their respective sectors, while Converge Technologies and Payfare have visible growth potential.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Payfare. The Motley Fool recommends DoorDash, NorthWest Healthcare Properties Real Estate Investment Trust, TELUS, and Uber Technologies. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Cogs turning against each other
Dividend Stocks

How Interest Rate Cuts Affect REITs

Now is a good time to investigate Canadian REITs and take a position in the form of stocks or exchange…

Read more »

Stocks for Beginners

The Best Stocks to Invest $2,000 in Right Now

Looking for the best stocks to buy now and hold for decades? Here's a trio that can provide growth and…

Read more »

dividends grow over time
Stocks for Beginners

3 Under-$10 TSX Stocks to Buy in July

These three stocks are cheaper than cheap, and could produce incredible returns as they continue to climb in the next…

Read more »

A steel grain silo storage tank with solar panel in a yellow canola field in bloom in Alberta, Canada.
Dividend Stocks

The Ultimate TSX Stock to Buy With $1,000 Right Now

Once at triple-digit prices, Nutrien stock (TSX:NTR) now offers a steal of a deal for long-term growth as well as…

Read more »

Women's fashion boutique Aritzia is a top stock to buy in September 2022.
Stocks for Beginners

Better Stock to Buy Now: Canada Goose or Aritzia Stock?

In the battle for Canada's top retailer, it looks like these companies are looking beyond our borders for even more…

Read more »

Doctor talking to a patient in the corridor of a hospital.
Dividend Stocks

3 Things You Need to Know if You Buy NorthWest REIT Today

This REIT holds a super high dividend yield at 7.2%, but before you invest here is exactly what investors need…

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Stocks for Beginners

All-Time Highs, Next-Level Gains: 2 Top TSX Growth Stocks to Watch

These two top stocks continue to climb, but there are more than enough reasons why investors should continue to keep…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Want Fast-Growing Passive Income? Here are 3 Long-Term Dividend Stocks

Looking for some fast-growing passive income options? Here are three that can provide for decades which belong in your portfolio…

Read more »