The Best Ways to Invest $10,000 in Canadian Markets Now

Here’s a well-rounded basket of three top Canadian stocks to have on your watch list today.

The Canadian stock market has been on a tear over the past two months. After a 10% pullback in the first week of April earlier this year, the S&P/TSX Composite Index has returned close to 20%, putting the index up more than 5% on the year.

As hot as the market has been as of late, though, now isn’t necessarily the time to be on the sidelines. For those with long-term time horizons, there are plenty of top-quality TSX stocks trading at attractive prices right now.

With that in mind, I’ve put together a well-diversified basket of three Canadian stocks that are all trading at discounts today. Together, the trio of campaigns can provide an investment portfolio with market-beating growth potential, passive income, and stability.

Canada national flag waving in wind on clear day

Source: Getty Images

goeasy

goeasy (TSX: GSY) is an under-the-radar growth stock that rarely trades at a discount, which is where it finds itself today.

Even with shares down 30% from all-time highs, though, the stock is still up a market-crushing 150% over the past five years.

goeasy is a consumer-facing financial services provider. The company, unsurprisingly, has seen demand take a hit as interest rates have sky-rocketed in recent years. But with more rate cuts potentially around the corner, now could be an opportunistic time to start a position in this consistent market-beater.

If you’re looking to add some market-beating growth potential to your portfolio, I’d suggest taking advantage of this discount while it lasts.

Brookfield Renewable Partners

It’s not hard to find a discount in the renewable energy space today. Following two growth-filled years in 2019 and 2020, the sector as a whole has largely been on the decline since early 2021.

Excluding dividends, shares of Brookfield Renewable Partners (TSX: BEP.UN) are down nearly 50% from their all-time highs, which were last set in January 2021. 

In the short term, aside from a dividend that’s currently yielding more than 5%, I wouldn’t expect much from a top renewable energy stock like Brookfield Renewable Partners. It may take time for the sector to rebound and for its leaders to return to their market-beating ways. But for investors with long-term time horizons, there could be some serious value here. 

Brookfield Renewable Partners is no stranger to outperforming the market’s returns. So, if you’re bullish on the long-term rise in renewable energy consumption, I’d have this high-yielding energy stock on your watch list.

Bank of Nova Scotia

To balance out this basket, I’ve included a high-yielding, dependable bank stock. 

If you’re looking for passive income and dependability, you can’t go wrong with any of the Big Five Canadian banks. But in this basket, I’ve included Bank of Nova Scotia (TSX: BNS), which is currently the highest-yielding amongst its peers.

At today’s stock price, Bank of Nova Scotia’s dividend is nearing a dividend yield of 6%. The other four major banks are all currently yielding below 5%. In addition, Bank of Nova Scotia has been paying a dividend to its shareholders for close to 200 consecutive years.

If your portfolio already skews towards growth stocks, adding a dependable dividend-payer like Bank of Nova Scotia might be a wise idea.

Fool contributor Nicholas Dobroruka has positions in Brookfield Renewable Partners. The Motley Fool recommends Bank Of Nova Scotia and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

runner checks her biodata on smartwatch
Dividend Stocks

A 7% Yield Won’t Protect You From a Dividend Cut: This Payout Looks Safer

A smaller dividend backed by growing earnings can be more useful in retirement than an unsustainable headline yield.

Read more »

money goes up and down in balance
Dividend Stocks

One $7,000 TFSA Contribution Could Grow Into $50,000: Here’s How Long It Takes

Once the money is inside a TFSA account, a $7,000 investment can become $10,000, $20,000, or considerably more with compounding,…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

You’ve Maxed Your TFSA – Now What?

Maxed your TFSA? These three Canadian growth stocks can help investors keep building wealth while they plan their next investing…

Read more »

workers walk through an office building
Dividend Stocks

Is This 12.2%-Yielding Stock too Good to Be True?

Allied Properties REIT’s 12.2% yield looks tempting, but investors should weigh weakening cash flow against its improving leasing and debt-reduction…

Read more »

shoppers in an indoor mall
Dividend Stocks

A Top-Tier 6.8% Dividend Stock That Pays Cash Every Month

This Canadian monthly dividend stock is a great combination of a 6.8% annualized yield, monthly cash distributions, and a highly…

Read more »

Warning sign with the text "Trade war" in front of container ship
Dividend Stocks

Forget the Noise: Why Cascades Packaging Could Outlast the Trade War

Cascades stock has rallied 73% over the last year, and improving profitability, lower debt, and tariff-mitigation efforts could help keep…

Read more »

a sign flashes global stock data
Dividend Stocks

The Best Ways to Invest in the TSX Near All-Time Highs

Learn how to invest in the TSX near all-time highs with a broad-market ETF, a lower-volatility option, and a proven…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How to Convert $40,000 Into a TFSA Income Machine

Want to earn $1,770 of extra dividend income? Here's how to structure a TFSA portfolio for a mix of income,…

Read more »