How I’d Invest $15,000 in Canadian Consumer Discretionary to Afford Life’s Luxuries

The best Canadian consumer discretionary stocks can provide growth and income for years. Here’s a trio to look at closely this month.

Finding the right mix of stocks to invest in today can prove to be a game-changer years from now. And among those right mix of stocks are several Canadian consumer discretionary stocks every investor should consider buying.

Here’s a look at how I would take $15,000 and invest in those fine Canadian consumer discretionary stocks.

Canadian dollars in a magnifying glass

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Invest $6000 in this retail giant

The first consumer discretionary option to consider is Canadian Tire Corporation (TSX: CTC.A). Canadian Tire is one of the largest and most well-known retailers in Canada.

Apart from its namesake, Canadian Tire operates under several other banners that include automotive parts, clothing, party supplies, and financial services. In recent years, Canadian Tire has also expanded its suite of private-label brands.

Those brands provide defensive appeal and branding power over the growing number of internet-only products. That well-diversified portfolio of products also helps Canadian Tire pay out a very generous dividend.

As of the time of writing, that dividend works out to a respectable 3.5%. A $6,000 investment in Canadian Tire today can help generate additional shares through reinvestment, fueling a long-term growth strategy.

That makes Canadian Tire a key Canadian consumer discretionary option for any portfolio.

Hungry? Consider dropping $4,000 into this stock

When market volatility hits, some segments of the market perform better than others. One such example is fast food, and Restaurant Brands International (TSX: QSR) represents an interesting option for investors to consider.

Specifically, this Canadian consumer discretionary stock is the name behind Tim Horton’s, Burger King, Popeye’s, and Firehouse Subs.

More importantly, each of those brands caters to different segments of the market and has shown strong growth in recent years. In fact, in the most recent quarter, Restaurant Brands saw a whopping 9.6% increase in sales across its product lines.

Those favourable sales figures also mean that Restaurant Brands can both invest in growth and pay out a handsome dividend.

As of the time of writing, that dividend works out to a tasty 4% yield. Like Canadian Tire, a $4,000 investment in Restaurant Brands will generate a few shares through reinvestments.

If you want growth, invest $5,000 here

When market volatility hits, dollar stores emerge as some of the best options to invest in. This is because as consumers trade down to more frugal options, dollar stores like Dollarama (TSX: DOL) move into the spotlight.

Dollarama is the largest dollar-store operator in Canada, with a still-growing portfolio of over 1,500 locations in Canada. The retailer’s growth over the past decade has been in a word, incredible. In fact, over the past five years the stock has surged a whopping 270%.

Part of Dollarama’s appeal is the retailer’s fixed-price model. In short, Dollarama prices items at fixed levels from $1 to $5. Dollarama also bundles several lower-priced items under one price point, providing inflation-wary shoppers additional value.

Even in this incredibly volatile market, the stock has surged over 30% in the trailing 12-month period. If that market volatility continues and leads to a larger correction, or even a recession, expect shoppers to shift to Dollarama.

A $5,000 investment in this Canadian discretionary stock will help fuel long-term growth for any well-diversified portfolio.

Final thoughts: Canadian consumer discretionary stocks to buy today

The market is full of volatility lately, but fortunately, the trio of stocks mentioned above can provide plenty of defensive appeal and growth for long-term investors.

In my opinion, one or all of the above stocks should be core holdings in any well-diversified portfolio.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

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