The S&P/TSX Composite Index closed above 25,000 again on May 2, 2025, following four straight winning weeks. Canada’s primary stock market has displayed resiliency amid the tariff war and is back in positive territory (+1.23% year to date).
If you want to invest right now, the smartest Canadian stock to buy with $7,000 is TMX Group Limited (TSX: X). The $15.5 billion company is the operator of the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) as well as the TSX Alpha Exchange, Montreal Exchange (MX), and the Canadian Depository for Securities.
At $55.91 per share, the financial services stock is up +26.77% thus far in 2025. The +58.22 trailing one-year price return is proof of its stability despite the elevated market volatility. Besides the market-beating return, current investors partake in the 1.38% dividend (quarterly payout). TMX has been paying dividends since 2003.
Image source: Getty Images
Business overview
TMX Group takes pride in being an integrated, multi-asset class exchange group. Its key subsidiaries mentioned above operate cash and derivative markets and clearinghouses for multiple asset classes, including equities, fixed income and energy. The Canadian firm provides clearing facilities, data products and other services for the international financial community.
One of its primary advocacies is to enhance the competitiveness of Canada’s capital markets through collaboration with stakeholders, clients, regulators, and the government. Another priority is to position TMX competitively to accelerate and drive sustainable growth.
Regardless of the type and stage of development, companies worldwide can raise capital or have access to equity capital. Canada could likewise be a preferred destination for traders and investors seeking financial prosperity. However, geopolitical conflict affected capital-raising activities last year.
Record financial performance
Luc Bertrand, TMX Group’s board chairman, said, “2024 was an outstanding year at TMX Group, highlighted by record financial performance and the successful execution of several key initiatives across the franchise. Despite ongoing market uncertainty, TMX consistently delivered positive results quarter after quarter, which is a testament to the strength and diversification of its business model.”
In the 12 months ending December 31, 2024, revenue and income from operations increased 22% and 19% year over year to $1.5 billion and $642.3 million, respectively. Net income attributable to equity holders of TMX Group rose 35% to $481.5 million, while cash flows from operating activities climbed 19% to $623.4 million from a year ago.
In August 2024, The TMX Group acquired Newsfile Corporation, a customer-first news distribution and regulatory filing provider, to expand its public and private company solutions offerings further. Management desires to make TMX more of an information business than it is today.
Its CEO, John McKenzie, added, “Our performance during the year reflects pronounced growth in key components of our business, significant accomplishments across our evolving enterprise, and important progress in our growth initiatives.”
Sustainable growth strategy
According to management, its sustainable growth strategy and long-term financial objectives support the continued desire to increase TMX’s global footprint and recurring revenue. Beyond 10 years, TMX expects more than half of its revenue to come from outside Canada, and more than two-thirds are recurring. TMX suits long-term investors, including Tax-Free Savings Account users. The TSX operator is among the best investment options today due to steady earnings growth and reliable dividend payments.
