The Best Canadian Stocks to Buy Right Away With $4,000

Seeking strength from your investments? Then these are the three stocks to consider first.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 6, 2025 9:45 pm EDT

Investing $4,000 in Canadian stocks can be a strategic move to build long-term wealth. Focusing on Canadian stocks with strong fundamentals and growth potential is key. Three such companies are ARC Resources (TSX:ARX), Badger Infrastructure Solutions (TSX:BDGI), and Shopify (TSX:SHOP). So let’s take a look at them on the TSX today.

Muscles Drawn On Black board — Source: Getty Images

ARC

ARC Resources is a leading Canadian energy company specializing in natural gas and liquids. In the first quarter of 2025, ARC reported average production of 372,265 barrels of oil equivalent per day, a 6% increase from the same period in 2024. The Canadian stock generated funds from operations of $857 million ($1.45 per share) and free funds flow of $400 million ($0.68 per share).

Net income was $405 million ($0.69 per share). ARC declared a quarterly dividend of $0.19 per share and repurchased five million common shares for $131 million under its normal course issuer bid. The Canadian stock also announced a long-term LNG supply agreement with ExxonMobil LNG Asia Pacific, commencing with commercial operations at the Cedar LNG Facility expected in late 2028. All in all, it’s a strong Canadian stock that’s only getting stronger.

Badger

Badger Infrastructure Solutions is North America’s largest provider of non-destructive excavating services. In the first quarter of 2025, Badger reported revenue of $172.6 million, a 7% increase from the previous year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved to $33.8 million, up 16% from 2024.

Meanwhile, adjusted earnings per share (EPS) increased by 36% to $0.19. The Canadian stock’s board approved a quarterly cash dividend of $0.1875 per common share for the second fiscal quarter of 2025. Badger also repurchased 301,000 shares under its normal course issuer bid at a weighted average price of $38.31 per share. So you’ll be getting growth as well as income from this top choice.

Shopify

Shopify is a leading global commerce company, providing tools to start, market, and manage retail businesses. As of wrutubg, Shopify’s stock was forming the right side of a stage one double-bottom base, with a buy point at $111. Despite some volatility, the Canadian stock has shown consistent earnings and sales growth.

Over the last eight quarters, earnings per share have grown to $0.44, with a consistent 26% sales growth rate. Analysts forecast a 31% increase in Q1 profit ahead of the Canadian stock’s May 8 earnings release. Notably, ARK Invest’s Cathie Wood recently added approximately $5.9 million in Shopify stock to her ARK Next Generation Internet ETF! So it might be time to sit up and pay attention.

Bottom line

Allocating your $4,000 investment equally among these three Canadian stocks at about $1,333 each provides a diversified portfolio across the energy, infrastructure, and technology sectors. ARC Resources offers exposure to the energy sector with strong financials and shareholder returns. Badger Infrastructure provides stability and consistent dividends in the infrastructure space. Shopify offers growth potential in the technology sector, despite some market volatility. This balanced approach can help mitigate risks and capitalize on opportunities across different industries – as well as offers income through both returns and some dividends for today’s investor.