The S&P/TSX Composite Index has recently climbed to a record high, even amid ongoing economic uncertainty. This performance serves as a strong reminder of the power of long-term investing. Staying invested through the market volatility can help grow your wealth and generate solid returns over time.
So, if you’re new to investing and have $500 to put to work, you can begin building a diversified portfolio. Spreading your investment across different sectors can help balance growth and stability. Against this background, here are some of the top Canadian stocks to consider now.
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Celestica stock
New investors should consider adding top Canadian technology stocks to their portfolios for solid long-term gains. Within the tech space, Celestica (TSX: CLS) could be a solid addition. While the stock has marked a remarkable increase of over 1,066% in the past three years, it still offers substantial upside potential, driven by its exposure to fast-growing markets.
Celestica Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS) are showing solid momentum. The CCS segment is thriving on surging demand from hyperscaler clients, especially for hardware platform solutions like networking switches. In the first quarter alone, revenue from its HPS unit nearly doubled to just over $1 billion, making up 39% of total sales. This growth in the HPS segment is driven by the demand for 400G and 800G networking switches, which are essential components in the artificial intelligence (AI) infrastructure boom.
Meanwhile, the ATS segment benefits from healthy demand for capital equipment and early signs of recovery in industrial markets.
While global trade policy remains uncertain, recent U.S. decisions, such as temporary exemptions on key data centre hardware, offer relief to Celestica. As AI infrastructure investment continues to accelerate, Celestica will continue to deliver solid revenue growth, while its stock price is expected to witness appreciation in value.
Hydro One stock
New investors could consider adding Canadian utility stocks for stability and reliable income. Among the top bets, Hydro One (TSX: H) could be a solid investment given its relatively higher resilience to peers, ability to deliver solid capital gains, and solid dividend payouts.
Hydro One engages in electricity transmission and distribution and has no exposure to commodity price swings, offering investors more predictable earnings. Further, operating in a rate-regulated environment, it enjoys stable cash flows and visibility into future revenues, making it a low-risk, defensive play.
Despite its conservative business model, Hydro One has delivered impressive growth. Its shares have risen at a compound annual growth rate (CAGR) of 16.8% in the last five years, delivering an overall capital gain of 117%. Moreover, it has consistently increased its dividend over the past several years.
With its regulated business model, rising electricity demand, and a growing rate base, Hydro One offers income, stability, and long-term growth in any market condition.
Waste Connections
Waste Connections (TSX: WCN) is an appealing pick for new investors seeking long-term growth. The company provides non-hazardous waste collection and disposal services. Moreover, it focuses on underserved rural and secondary markets. This strategy enables it to minimize customer churn, dominate local markets, and generate steadier revenue than its peers in crowded urban areas.
In specialized sectors such as energy exploration and waste disposal, Waste Connections leverages early-mover advantages in regions with few alternatives, thereby boosting profitability. Financially, the company is performing well, which will support its share price.
Looking ahead, Waste Connections appears well-positioned for continued growth through organic price growth, increased recycling revenues, improved operational efficiency, and strategic acquisitions.
