With so much uncertainty facing TSX stocks, it can be a challenge for a new investor to know how to invest right now. One great way to help manage that risk is to own a diverse portfolio.
A mix of stocks with exposure to different industries, sectors, and assets can help prevent the risk of permanent capital loss. As you gain experience, you can start to narrow in on which market segments match your interests and risk tolerance.
If you are looking for some TSX stocks to get started with, here are three stocks to look at adding.
TSX dividend stocks for safe passive income
Dividend stocks are a great place to start. New investors often enjoy the tangible returns that dividends bring. What’s better than cash in your pocket just for owning a stock? If you want an ultra-safe stock, Fortis (TSX:FTS) is a good bet.
You don’t own this stock for a big capital gain. FTS stock has only risen by about 4% per annum for the past five years. However, it has steadily paid and grown its ~4% dividend yield.
Fortis is a low beta stock. This means it is generally less volatile than the broader market. Its transmission utilities across North America deliver stable and predictable results. This has fuelled 50-plus years of consecutive dividend increases. It is not exciting, but it is very safe (and you collect passive income along the way).
A higher risk, higher reward small cap stock
Small cap stocks are a great place to invest if you don’t mind a bit more risk and higher reward. VitalHub (TSX:VHI) has the potential to deliver great long-term returns in the future.
The software firm provides solutions to the healthcare industry. Its technology helps clinics and hospitals become more effective and efficient. The entire industry is ripe for disruption. That gives VitalHub a long runway ahead.
The company has grown by making good acquisitions and smart market expansion. With a cash-rich balance sheet, it should be able to keep growing by adding smart software companies to its portfolio. It has operations across the world, so you are not at risk from exposure to any one market.
VitalHub is not the cheapest stock in terms of valuation. However, if it can continue to execute like it has in the past few years, it could deliver strong double-digit annual returns ahead.
An established TSX growth stock
You don’t always need to increase risk to get better rewards. Constellation Software (TSX:CSU) is a great example. The software firm has steadily compounded returns by over 30% for more than 18 years. However, today its stock trades for over $4,850 per share. CSU stock has a market cap over $100 billion.
The good news is that you can buy its little brother, Topicus.com (TSXV:TOI), for only $139 per share. Topicus is consolidating small, specialized software businesses around Europe and abroad. Given what is happening in the U.S., this is a way to broaden your geographic exposure.
Topicus has made some great acquisitions early on in 2025. The spinoff generates a lot of excess cash and has a very strong balance sheet. It’s a good bet if you want to mirror Constellation’s growth profile for the years to come.
