The S&P TSX Composite Index has recently surged to record highs, despite lingering concerns about the broader economy. For many new or cautious investors, a market at all-time highs might feel like a signal to wait on the sidelines. However, history shows that markets reaching new peaks is a normal part of long-term investing. Over time, it tends to trend higher, setting fresh records along the way.
This long-term upward trajectory is exactly why sticking with your investments, even through periods of market turbulence, can pay off. While markets naturally experience cycles of ups and downs, staying invested allows you to benefit from overall growth, thereby compounding your returns.
For those new to investing, even a modest amount, say, $1,000, can be enough to take your first steps into the world of investing. Focusing on fundamentally strong stocks and diversifying your investment across various sectors can help reduce risk while positioning your portfolio for long-term growth and appreciation.
Against this backdrop, here are the top Canadian stocks to buy now with $1,000.
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Top Canadian stock #1: Brookfield Asset Management
Brookfield Asset Management (TSX:BAM) is a top Canadian stock to buy and hold for the long term. The company’s asset-light business model, higher mix of fee-related earnings, and exposure to high-growth sectors position it well to deliver solid growth and income.
Its diverse portfolio spans infrastructure, power generation, and essential services, sectors that support everyday economic activity and are largely shielded from global trade disruptions. Moreover, its early investments in high-growth industries, such as renewable energy, data centers, semiconductor manufacturing, and nuclear power, position it well for future gains.
In the first quarter (Q1), its fee-bearing capital surged 20% year over year to $549 billion, fueling a 26% rise in fee-related earnings and a 20% increase in distributable income. Looking forward, Brookfield plans to double its business and grow fee-bearing capital to $1 trillion, which will accelerate its growth, enabling it to deliver solid total returns.
Top Canadian stock #2: Enbridge
Enbridge (TSX:ENB) is an attractive TSX stock to buy and hold for the long term. This energy company, known for transporting, storing, and distributing energy across North America, operates a diversified network of infrastructure that delivers steady earnings and dependable cash flow. Its low-risk operating structure, supported by regulated contracts or take-or-pay agreements, provides a cushion against market and commodity price volatility, driving its earnings and distributable cash flow (DCF).
Thanks to its growing DCF, Enbridge’s dividend has grown at a compound annual growth rate of 9% in the last 30 years. Moreover, it has delivered decent capital gains.
Looking ahead, Enbridge appears well-positioned to deliver steady capital gains and regular income. Its infrastructure is strategically located in regions where demand for energy remains strong. Furthermore, Enbridge’s growing gas transmission business is poised to benefit from macroeconomic trends, including rising energy demand from data centres, the expansion of LNG facilities, and the transition from coal to gas.
The company is strengthening its balance sheet, lowering its leverage profile, and expanding its utility base, which will help generate solid earnings and support its growth. In short, investors new to investing could consider Enbridge stock for consistent dividend income and steady capital gains.
