Starting your investing journey can feel overwhelming — but it doesn’t have to be. With just $7,000, you can build a strong, diversified portfolio with some of Canada’s most resilient and rewarding companies.
Here’s how I’d allocate that amount across four top Canadian stocks to balance safety, growth, and income. Each of these picks offers something different — from stable dividends to long-term upside — making them great ideas for further investigation for beginner investors.
1. Royal Bank of Canada — $2,000
There’s a reason Royal Bank of Canada (TSX:RY) is a staple in so many portfolios. As Canada’s leading bank, RBC offers stability, a solid dividend, and international growth potential. It’s weathered countless economic cycles and has proven itself to be a reliable performer in both good times and bad.
With a dividend yield hovering around 3.5%, RBC gives you regular income while you wait for capital appreciation. It also benefits from rising interest rates through improved lending margins. For beginners, it’s a great foundational stock that won’t keep you up at night, especially if you load up on meaningful market corrections.
2. Brookfield Infrastructure Partners L.P. — $2,000
Looking for reliable, long-term growth and passive income? Brookfield Infrastructure Partners L.P. (TSX:BIP.UN) is your stock. It owns and operates critical infrastructure assets around the world — think utilities, pipelines, toll roads, and data centres. These are the types of assets that remain in demand no matter what the economy is doing.
Brookfield Infrastructure Partners has a stellar track record of growing its cash distributions (16 straight years and counting), and it’s aiming for 5–9% annual cash distribution growth going forward. With a current yield of about 5.1% and strong global diversification, BIP is an ideal “buy and hold” stock for TFSA investors. It’s a reasonable buy today and a great buy on any meaningful market dips.
3. Canadian Natural Resources — $1,500
For exposure to the energy sector — and strong dividend growth potential — Canadian Natural Resources (TSX:CNQ) is hard to beat. As one of Canada’s largest oil and natural gas producers, CNQ has low-cost operations, high free cash flow, and a management team focused on returning capital to shareholders.
In recent years, CNQ has boosted its dividend aggressively (for example, its five-year dividend-growth rate is 23%), and it currently yields around 5.4%. While energy stocks can be volatile, CNQ’s integrated operations and strong balance sheet make it one of the more resilient names in the sector. It’s a great way to benefit from global energy demand while collecting growing dividends. Analysts believe CNQ stock trades at a discount of north of 13% at about $44 per share at writing.
4. goeasy — $1,500
For a little more growth potential — with some added risk — goeasy (TSX:GSY) stock is an exciting opportunity. This non-prime consumer lender has grown both its revenue and earnings at an impressive clip of 17% and 27%, respectively, over the past decade. It serves a market that the big banks largely ignore and has carved out a strong niche.
goeasy also pays a dividend, currently yielding around 3.8%, and has increased it for about 10 consecutive years at an amazing dividend growth rate of 30%. While the stock can be volatile, its growth story makes it a potentially compelling option for long-term investors willing to ride out short-term bumps.
At below $155 per share at writing, the financial services stock trades at a blended price-to-earnings ratio of about 9.1, which is more than a 20% discount from its long-term normal valuation. Analysts also think shares trade at a good discount of 27%. Patient investors with a three to five-year investment horizon could be very well rewarded.
The Foolish investor takeaway
With this $7,000 allocation — $2,000 each in RBC and Brookfield Infrastructure, $1,500 in CNQ, and $1,500 in goeasy — you’re gaining exposure to financials, infrastructure, energy, and consumer credit. That’s a balanced mix of income and growth across different parts of the Canadian economy.
Investing doesn’t have to be complicated. With a few high-quality stocks and a long-term mindset, this starter portfolio is a smart first step.
