Investing on the TSX with a modest sum of $1,000 can be a great way to grow your wealth over time. But even if you have that cash set aside, what can you do with it?
Today, we’re going to show investors how to get started with that $1,000. But go a bit beyond the basics of opening a Tax-Free Savings Account (TFSA) or choosing diversified stocks. So, let’s get into it.
Beyond the basics
First up, exchange-traded funds (ETFs) offer an excellent entry point for new investors. They provide diversification, reducing risk by spreading investments across various sectors. For example, BMO Equal Weight Banks Index ETF gives you exposure to Canada’s major banks. This ETF has a relatively low management fee and includes stable, dividend-paying stocks.
From there, investing in high-dividend stocks can generate passive income. Here, NorthWest Healthcare Properties REIT is a strong contender. It offers a monthly dividend yield of around 6.98%. This REIT focuses on healthcare real estate, providing stability and a steady income stream.
For potential long-term growth, consider the technology and financial sectors. CGI has shown significant growth, with shares up 1,397% over the past two decades. If you want lower risk, Toronto-Dominion Bank (TSX:TD) offers a blend of growth and stability. Its strong online presence and strategic credit card partnerships offers this in spades. Despite economic fluctuations, TD has shown resilience with a 5.1% dividend yield and a decade-long growth of 223%.
A major tip
If you really want some long-term growth, look for companies that are supported by some of the best names in investing. One such name is Mark Leonard. This is the man behind Constellation Software, Topicus.com, and Lumine Gropu (TSXV:LMN).
Lumine Group has demonstrated robust financial performance, significantly narrowing its losses. In the first quarter of 2024, the company reported a loss per share of US$3.53, a substantial improvement from the US$9.61 loss per share in the same period in 2023.
Lumine Group is also actively expanding its portfolio through strategic acquisitions. Recently, it acquired the Axyom Cloud Native 5G Core Software and RAN Assets from Casa Systems and the Device Management and Service Management Platform businesses from Nokia.
What’s more, Lumine Group operates in the communications and media software sector, a field poised for significant growth as digital transformation accelerates globally. The company’s focus on acquiring and integrating high-potential software businesses positions it well to capitalize on this trend. Plus, the company’s business model of being a “buy-and-hold forever” acquirer provides stability and long-term growth prospects, which is appealing to investors looking for sustained value creation.
Bottom line
For those with $1,000 to invest, Lumine Group offers a compelling opportunity on the TSX Venture Exchange. Its strategic acquisitions, improved financial performance, and promising market position make it a stock worth considering for both novice and seasoned investors — especially if they’re looking to diversify their portfolios with high-growth potential stocks.
