Best Canadian Stocks to Buy With $7,000 Right Now

Canadian stocks with fundamentally strong businesses, growing earnings bases, and multiple growth catalysts will likely generate stellar capital gains over time.

| More on:
Canadian dollars in a magnifying glass

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Canadian stocks with fundamentally strong businesses, growing earnings bases, and multiple growth catalysts will likely generate stellar capital gains over time. So, if you plan to invest $7,000, which is the Tax-Free Savings Account (TFSA) contribution limit for 2025, here are the best stocks to buy now.

Stock #1

Dollarama (TSX:DOL) is one of the best Canadian stocks for income, growth, and stability. The discount retailer’s solid financials and defensive business model have driven its stock price higher. Beyond above-average capital gains, Dollarama stock has returned significant cash to its shareholders. For instance, it has raised its dividend 13 times since 2011.

Created with Highcharts 11.4.3Dollarama PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Dollarama sells a wide range of consumer products at low and fixed prices. This value proposition enables it to consistently drive customer traffic and boost revenues, regardless of the economic situation. Moreover, the retailer is expanding its store network, focusing on efficient sourcing, and taking cost-control measures, which will likely support its bottom line and drive future dividends and stock prices.

Stock #2

TerraVest Industries (TSX:TVK) is another top Canadian stock to add to your TFSA portfolio. Shares of this leading industrial manufacturer have outpaced the benchmark index by a significant margin. For instance, TerraVest stock gained over 175% in one year and over 906% in five years. The company’s diversified portfolio, strong demand for its services, and investments to accelerate growth drove its financials and share price.

Created with Highcharts 11.4.3TerraVest Industries PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The momentum in TerraVest’s business will likely sustain, supporting its share price. The company will gain from the solid demand for compressed gas distribution equipment and residential and commercial petroleum tanks.

Further, its accretive acquisitions, expansion of its product offerings, opportunities in the international market, and manufacturing efficiency will likely generate incremental revenue and earnings, boosting its share price. Moreover, its robust balance sheet and solid liquidity position will help it pursue high-growth opportunities and enhance shareholder value in the coming years.

Stock #3

Canadian Natural Resources (TSX:CNQ) is a solid stock to generate above-average total returns. The oil and gas producer consistently generates strong earnings and cash flows that support its stock price and higher dividend payments. Canadian Natural Resources stock has gained over 191% in the last five years. Moreover, its dividend grew at a compound annual growth rate (CAGR) of 21% in the last 25 years. The stock also offers a decent yield of 4.6%.

Created with Highcharts 11.4.3Canadian Natural Resources PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Canadian Natural Resources’s long-life, low-decline assets, well-balanced production, and focus on strategic acquisitions position it well to grow its earnings, providing a solid base for growth. Moreover, its low-capital, high-growth projects, operating efficiency, and strong balance sheet will enable it to generate significant free cash flows, pursue high growth opportunities, and drive higher payouts.

Stock #4

Canadian investors could buy Hammond Power Solutions (TSX:HPS.A) stock right now. The company manufactures dry-type transformers and power-quality products and is witnessing solid demand for its products from emerging sectors like artificial intelligence (AI), electric vehicles (EVs), healthcare, and infrastructure.

Created with Highcharts 11.4.3Hammond Power Solutions PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Looking ahead, the company’s steadily growing backlog suggests that the momentum in Hammond’s business will likely be sustained. Factors such as the growing need for more power and data, electrification of vehicles, and infrastructure investments will accelerate its growth rate. Further, strategic acquisitions and an expected rebound in traditional segments such as oil and gas, mining, and utilities will support its financial performance and drive its stock price.

Should you invest $1,000 in Enbridge right now?

Before you buy stock in Enbridge, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enbridge wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Canadian Natural Resources and TerraVest Industries. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

An investor uses a tablet
Stocks for Beginners

The Smartest Canadian Stock to Buy With $250 Right Now

Are you looking for the smartest Canadian stock to buy right now? Consider this gem and avoid market volatility.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Investing

Fortis Just Might Be the Best Canadian Dividend Stock to Buy in April

Let's dive into a few reasons why Canadian utility giant Fortis (TSX:FTS) still looks like a screaming buy heading into…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

a man relaxes with his feet on a pile of books
Investing

Got $7,000? How I’d Spread It Across 5 Blue-Chip Stocks for an Investing Foundation

Spreading $7,000 across these five blue-chip stocks provides a solid foundation for long-term financial success.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

How I’d Allocate $10,000 to AI Stocks in Today’s Market

Shopify (TSX:SHOP) is one of Canada's most compelling AI stocks.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Retirement

Top Canadian Value Stocks I’d Hold in My TFSA for the Next Decade

These Canadian value stocks have significant growth potential and will enhance your TFSA portfolio’s return in the long run.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »