Investing $5,000 in 2025 presents an exciting opportunity to build a portfolio with a mix of stability and growth. In Canada, three standout stocks fit this approach. Those are Royal Bank of Canada (TSX:RY), Brookfield Asset Management (TSX:BAM), and Waste Connections (TSX:WCN).
Each of these companies has demonstrated strong performance, resilience in changing economic conditions, and solid long-term potential, making them compelling choices for Canadian investors looking to put their money to work.
RBC
Royal Bank of Canada remains a cornerstone of the Canadian stock market, and for good reason. It is the country’s largest bank by market capitalization and continues to deliver strong financial performance. In its most recent earnings report, RBC posted a net income of $4.5 billion, surpassing analyst expectations.
The acquisition of HSBC Canada has already begun to contribute to its bottom line, adding $239 million in profits. Its personal and commercial banking division saw a 17% increase in earnings. Meanwhile, the bank’s wealth management and capital markets divisions reported even stronger growth of 30% and 23%, respectively. These numbers reflect the bank’s ability to generate consistent earnings across multiple business lines, making it a reliable option for long-term investors seeking both stability and dividends.
Over the past year, RBC’s stock climbed 18%, reaching an all-time high of $119.15. This increase has outpaced many of its Canadian banking peers, demonstrating investors’ confidence in its long-term growth strategy. While the banking sector as a whole faces headwinds such as high interest rates and potential economic slowdowns, RBC positioned itself well by increasing its provisions for potential loan losses. This cautious approach ensures that even in a more challenging economic environment, the bank remains well-capitalized.
BAM
Brookfield Asset Management is another excellent choice for investors looking to allocate capital in 2025. The Canadian stock established itself as a global leader in alternative asset management, with assets under management now surpassing $1 trillion. It has a proven track record of successfully monetizing investments, with recent deals including the $1.4 billion sale of Saeta Yield.
This strategy of active asset recycling allows Brookfield to continuously reinvest in high-growth opportunities while maintaining strong cash flow. With institutional investors increasingly seeking alternative assets such as infrastructure and real estate, Brookfield is in a prime position to benefit from this trend.
One of the most significant developments for Brookfield Asset Management has been its decision to relocate its headquarters to New York. This move is designed to enhance its stock liquidity and increase its appeal to U.S. investors. By making this shift, the Canadian stock could become eligible for inclusion in major U.S. stock indices. This would likely drive increased demand for its shares. Furthermore, Brookfield has simplified its corporate structure in recent years, reducing valuation discounts and making its business easier for investors to understand.
WCN
Waste Connections, a leader in the waste management industry, is a strong defensive stock that provides steady growth and resilience against economic downturns. The Canadian stock recently reported fourth-quarter revenue of $2.6 billion and projects its 2025 revenue to land between $9.45 billion and $9.6 billion. Net income is expected to be approximately $1.2 billion, reinforcing its consistent ability to generate profits.
Waste management is an essential industry that benefits from stable demand regardless of economic cycles, making Waste Connections an appealing stock for investors who prioritize steady returns. Analysts continue to view Waste Connections favourably – some highlighting the company’s solid performance and strong financial outlook.
Waste Connections has also rewarded its investors over the past year, with its stock price rising from $166 to $189.76, marking a 14% increase. This steady climb reflects the company’s ability to grow its revenue and profits in a predictable manner, which is highly attractive for investors looking for lower volatility.
Bottom line
With $5,000 to invest, splitting funds among these three stocks ensures diversification while capturing both stability and long-term upside. RBC’s dominance in the financial sector, Brookfield’s ability to capitalize on global infrastructure and real estate trends, and Waste Connections’ steady performance in waste management provide investors with exposure to three distinct yet fundamentally strong sectors. This strategy allows for a mix of defensive and growth-oriented investments. Making it a solid choice for 2025 and beyond.
