Investors across the world were exposed to a deep correction this week, which rarely happens. As long as cool heads prevail, this latest correction represents a great opportunity for investors to invest $1,000 in some great Canadian stocks.
Even better, those looking to invest $1,000 or more can scoop up some incredible deals right now.
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First, a cautionary note
Market corrections are a normal part of the investment cycle, and despite claims to the contrary, nobody can really time the market.
Alternatively, the best option for investors is to buy in at discounted levels and acquire some great Canadian stocks.
Are you ready to invest $1,000? Let’s start with a few great options!
Let’s go shopping
The first stock to consider buying right now is Shopify (TSX: SHOP). The e-commerce platform has gone from niche tech startup to commerce titan in under a decade.
Throughout that time, Shopify has continued to invest in a series of new bolt-ons to its platform. This means that the one-stop-shop appeal of Shopify remains as strong as ever, catering to everything from fulfillment and payment processing to storefront design, analytics, and social media.
As of the time of writing, Shopify trades at a hefty 20% discount this week. This means that if you invest $1,000 right now, you can squeeze out an extra share.
All aboard the recovery train
Another option for those ready to invest $1,000 is to consider Canadian National Railway (TSX: CNR). Canadian National is one of the largest railroads in North America, with access to three coastlines.
The appeal of a railway is huge. Most investors may not realize this, but there’s still an enormous amount of freight hauled by rail. So much so that railways like Canadian National are often referred to as arterial veins of the North American economy.
Another key point to note is that Canadian National hauls massive amounts of goods, which add up to over $200 billion each year. That includes everything from chemicals, raw materials and wheat to crude and automotive parts.
In other words, there’s a huge defensive moat that comes with a Canadian National investment.
Adding to that appeal is Canadian National’s dividend. The company pays out a respectable quarterly dividend, with a yield of 2.6%. Canadian National has also provided investors with an annual uptick to that dividend for a whopping 27 consecutive years.
Turning to price, over the past six months, Canadian National has dipped by over 10%. This means that those looking to invest $1,000 can also grab an extra share of this long-term gem.
Energy and dividends are standard
One final stock for those seeking to invest $1,000 in the market right now is Enbridge (TSX: ENB). Enbridge is an energy infrastructure behemoth that has its claws in multiple parts of the sector.
The company is best known for its pipeline business. That business, which includes both natural gas and crude segments, generates a reliable and recurring revenue stream. Enbridge hauls massive amounts of both, which in turn make the company an incredibly defensive option.
That defensive appeal is augmented further by Enbridge’s other businesses. That includes a renewable energy portfolio that has facilities in North America and Europe, as well as its natural gas utility operation.
Again, the focus is on generating a reliable and recurring revenue stream that leaves room for growth and a juicy yield. As of the time of writing, that yield works out to a tasty 5.9%, making it one of the best dividends on the market.
Perhaps best of all, Enbridge offers investors three decades of consecutive annual bumps to that dividend.
Over the past month, Enbridge has traded near flat, but the stock is down a few points this week. This makes yet another great option for long-term investors to purchase a great long-term gem at a discount.
Invest $1,000 today, generate an income tomorrow
As we’ve seen this week, no stock, even the most defensive, is not without some risk. Fortunately, long-term investors can take solace in knowing that the above stocks can provide growth and income in a discounted package.
In my opinion, one or all of the above should be core positions in a well-diversified portfolio.
