If you’ve got $200 sitting idle, it might be time to put that cash to work. While $200 won’t buy you a full position, it’s enough to start a position using a dollar-cost averaging strategy — especially in quality TSX stocks. These three stocks offer good fundamentals, strong track records, and upside potential that make them ideal “buy-the-dip” candidates.
Descartes Systems: Growth stock that’s reasonably valued
Descartes Systems (TSX:DSG) is a global leader in cloud-based logistics software — a key enabler of global trade and supply chain efficiency. Its clients rely on its artificial intelligence (AI)-powered platform to optimize routes, track shipments in real time, and improve operational security and sustainability.
Though often seen as a tech growth name, Descartes also checks the boxes for reasonable value today. The stock has pulled back roughly 17% year to date, partly due to concerns over the changing situation in U.S. tariffs. Yet its long-term performance speaks volumes: a 10-year return of 583%, turning a $1,000 investment into nearly $6,838.
In its latest fiscal quarter (first quarter of 2026), Descartes posted 11.5% revenue growth to US$168.7 million, 9% operating income growth to US$46.2 million, and a 12% increase in adjusted EBITDA — a proxy for cash flow — to US$75.1 million. The company is light in debt and continues to acquire smaller firms, such as PackageRoute this month, to expand its client base and offerings.
Trading around $136, down from recent highs near $178, Descartes presents a chance to scoop up shares at a more attractive valuation. With continued innovation in AI, Internet of Things (IoT), and blockchain, it’s a tech-driven stock worth nibbling on now.
Canadian National Railway: A dividend blue-chip at a discount
Canadian National Railway (TSX:CNR) is a large railway company — and one of the most dependable dividend payers on the TSX. CNR operates a truly continental network stretching from the Atlantic to the Pacific and down to the Gulf of Mexico, making it an indispensable part of North American freight movement.
The stock has seen modest weakness this year, partly tied to tariff-related uncertainty. Currently trading around $140, it sits at a roughly 11% discount to its historical price-to-earnings (P/E) average. Analysts expect a near-term upside of 13% — providing a bit of a margin of safety in the blue-chip name. CNR is also a Canadian dividend knight. It yields about 2.5% today, with a five-year dividend-growth rate of 9.5% — well above inflation. For long-term investors seeking reliability, steady growth, and income, CN Rail looks like a solid buy on the current weakness.
Exchange Income: High yield and upside
Exchange Income (TSX:EIF) isn’t a household name — but maybe it should be. The diversified holding company owns a group of profitable, niche businesses in aviation and aerospace services, and manufacturing. Its strategy: acquire quality companies, keep management in place, and support them with long-term capital.
Despite gaining 34% over the past year, the stock still trades at a discount. Analyst consensus suggests about 21% near-term upside potential, with the current share price 17% below fair value.
The biggest attraction? A monthly dividend yielding 4.5% — and a dividend history going back to 2004 with no cuts. While the stock can be more volatile than a typical utility or bank, dips have historically been strong buying opportunities. EIF is a high-yield stock backed by real cash flow and disciplined capital management.
The investor takeaway
For just $200, you can begin building positions in any of these quality TSX stocks. Descartes offers growth at a reasonable valuation, Canadian National Railway delivers steady income and resilience, and Exchange Income offers yield with upside potential. These aren’t just no-brainers — they’re long-term compounders worth owning, especially on meaningful dips.
