The best time to start investing in Canadian stocks is whenever you have cash that you can afford to invest. While the Canadian market is up considerably in 2024, there is never an opportune time to buy stocks.
Either the market is bullish and valuations appear high, or the market is bearish and the world seems too bad to buy stocks.
The best thing you can do is find excellent businesses, build a position at different points in the market throughout the year(s), and then hold on if the business keeps delivering.
If you are looking for some starter stocks for a new portfolio, these four Canadian stocks look like good additions today.
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A dividend stock for beginners
Pembina Pipeline (TSX: PPL) is a worthy Canadian stock if you want a safe and solid dividend component. Pembina is an important provider of energy infrastructure in Western Canada. Most of its infrastructure has long-term contracts.
These contracts help cover and ensure the cash flow to pay its dividend. As its asset base grows, so too should its cash flows and dividend.
Not only is its midstream joint venture continuing to expand, but it also has the significant Cedar LNG export terminal coming on the way.
Pembina has a sector-leading balance sheet to support its growth. With a 5% yield, Pembina is a solid Canadian stock to hold for a steady stream of dividends.
A Canadian blue-chip stock
It has been a challenging year for Canadian National Railroad (TSX: CNR). Its stock is down 6% for the year. CNR has faced everything from strikes to fires to a weaker-than-average freight environment.
Fortunately, these are all temporary issues. They could present an opportunity to buy this Canadian stock at a more attractive valuation.
Canadian National has been in business for more than 100 years. Its network is a crucial asset in the North American economy. The rail operator has the right management team and a smart focus on network efficiency.
CN also has a strong balance sheet. I expect it to be opportunistically buying back stock right now. CN also has an impressive record of growing its dividend by a low-teens rate. CNR stock yields 2.2% today.
A stable long-term tech stock
If you are looking for a little more growth, Descartes Systems (TSX: DSG) is an enticing long-term holding.
Descartes operates a very important global logistics and transportation network. It compliments this with an array of software services that help streamline global supply chain processes.
This Canadian stock has a goal to grow by about 12–15% per annum. It has been exceeding this rate for several years.
The company is extremely profitable, and it has a cash-rich balance sheet. The supply chain operator has been deploying that cash into accretive acquisitions.
Descartes is a pricey stock. However, if you add it on significant dips, it should be a great Canadian investment over the long run.
A small cap with a big growth trajectory
If you don’t mind a bit of a riskier (but also more rewarding) investment, Canadian small cap stocks are a good place to look.
VitalHub (TSX: VHI) is certainly an intriguing play. Its stock is up 113% in 2024! However, there is reason to believe there is still upside from here.
VitalHub operates a healthcare platform specialized for the healthcare industry. Its software helps streamline healthcare processes and improve patient outcomes. The healthcare industry is continually strained, so demand for VitalHub’s services is ever-increasing.
The company has a strong balance sheet and capacity to grow organically and by acquisition. It is not a cheap stock here. However, start building a position over time and this stock should do well.
