Beginner Investors: Now Is the Perfect Time to Put Money in the Market (Start With These 4 Stocks)

Market pullbacks are the best time to start building a stock portfolio. If you are new, here are four great stocks to look at adding now.

Robin Brown

Author Bio

Robin Brown has been a regular contributor to The Motley Fool Canada since January 2020. He began investing in 2009, during the depths of the global financial crisis, and has continued to refine his approach over the years. His investment philosophy emphasizes patience, quality, and identifying businesses with the potential to create lasting value. Robin currently lives in St. Albert, Alberta, where he manages a portfolio of Western Canadian industrial properties and private investments. Having lived in Canada, Norway, and Australia, he brings a broad perspective to his work and investing. Outside of work, Robin enjoys traveling, hiking, hunting, fishing, biking, and cooking for his wife, two daughters, and son.

Education

Bachelor's degree in Theology
Advanced Diploma in Business Management

Areas of Expertise

Dividend investing, value investing, quality stocks, small-cap stocks, long-term investing, business fundamentals, balance sheet analysis, capital allocation, industrial real estate, and private investments.

Social Media Profiles

Favorite Investment Quote

"Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." — Warren Buffett

Published March 21, 2025 7:00 pm EDT

The best times to start building an investment portfolio are often when it feels the worst. Pessimism drives the market down and shrewd investors can pick up stocks at a bargain price.

If you are wondering how to start investing, the best way is to start with a diversified portfolio of stocks. Here are four you might consider buying for a beginner portfolio.

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A safe stock for uncertain times

Pembina Pipeline (TSX: PPL) is a really stable stock to own for dividends and modest growth. It operates a crucial infrastructure network across Western Canada.

Around 90% of its income is from contracted sources. In many instances, it is the only way energy producers can get their product to market.

With Canada looking for new countries to sell its energy, Pembina could benefit from an infrastructure expansion spree. While that is still in question, it has great assets that support an equally great 4.9% dividend yield.

A cheap dividend stock

REITs are a great place to invest if you want value and income. Dream Industrial REIT (TSX: DIR.UN) yields 6% today. That is the highest yield this stock has had in the past two years.

Dream has a strong portfolio of multi-tenanted properties across Canada and Europe. The REIT’s properties are well-located. Its average portfolio rent is substantially below market rents.

This just means it has a strong opportunity to increase cash flows without any investment. The stock trades at a massive discount to its private market value. For income and a potential valuation re-rating, this is a nice stock to hold for the next few years.

A tech company temporarily beaten up

If you are looking for growth stocks, opportunities have arisen in the recent market decline. Descartes Systems Group (TSX: DSG) has compounded earnings per share by a very nice 23% annual rate over the past 10 years. DSG stock returns have been just a bit better at 24% compounded per annum. Its stock is down 13% in 2025.

Descartes has an incredible business. It operates a crucial global logistics network with a mix of essential supply chain software services. It has high recurring revenues and very high profit margins.

Given trade concerns, the market has fallen out of love with this stock. Fortunately, the company has an excellent cash-rich balance sheet. I expect it to be opportunistic at buying other software businesses. Right now is a great time to add and own this company for the long run.

A small-cap growth company

Another growth stock with big potential upside is VitalHub (TSX: VHI). With a market cap of only $500 million, this is a small cap stock. This means VHI stock can be very volatile, but it also means it could have years of growth ahead.

VitalHub provides software services to the healthcare industry. The healthcare industry is incredibly inefficient. The healthtech has solutions to help improve patient flow and patient outcomes.

VitalHub also has a cash rich balance sheet. It has traditionally grown both organically and by acquisition, and has the fire power to fuel both those initiatives. VHI stock has pulled back in 2025, so it could be a good add here.