It’s not uncommon for Canadians to focus on saving when thinking about building wealth. However, the reality is that saving alone usually isn’t enough. In order to grow your money meaningfully over time, you need to put it to work, and that’s where finding the top Canadian stocks on the TSX to buy factors in.
Investing is essential because it doesn’t just help your money grow faster than saving. It also helps your savings grow faster than inflation. Without investing, inflation would erode the value of your hard-earned savings each year.
Furthermore, the earlier you start investing, the longer your money has to benefit from compounding. That’s why one of the most important steps any new investor can take is simply getting started as soon as possible.
Of course, knowing where to start can feel overwhelming. The market is filled with thousands of stocks, and it can be tempting to chase the biggest headlines or the fastest-growing companies.
That’s why the best approach for new investors is usually to begin with high-quality, core portfolio holdings. These are businesses that are stable, reliable, and have robust competitive advantages in their industries.
So, if you’re a new investor looking to start putting your hard-earned capital to work, here are three of the best Canadian stocks that I’d tell new investors to buy ASAP.
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One of the best dividend stocks Canadian investors can buy
If you’re a new investor looking for a high-quality and reliable Canadian stock to buy now that you can hold for years, Fortis (TSX: FTS), a $34 billion utility stock, is about as reliable as it gets.
Fortis is one of the best investments a new investor can make because it supplies electricity and natural gas to millions of customers across Canada, the U.S., and the Caribbean.
Furthermore, utilities are naturally known to be highly defensive since they provide essential services people can’t go without, even in a recession. That means Fortis’ cash flow is stable and predictable, which makes it easier for the company to pay a dividend every quarter.
So, as impressive as it is, it’s also not surprising that Fortis has increased its dividend for 50 consecutive years now, the second-longest streak in Canada.
That’s why, if you’re a new investor looking to build a reliable long-term portfolio, Fortis is one of the best Canadian stocks I’d suggest you buy ASAP, especially while it trades off its 52-week high and offers a current yield of 3.6%.
A massive energy infrastructure stock
In addition to Fortis, another high-quality dividend stock with reliable operations is Enbridge (TSX: ENB).
Enbridge is a reliable investment because it operates one of the largest energy infrastructure networks in North America, transporting oil and natural gas that power homes, businesses, and industries every day.
Furthermore, much like Fortis, Enbridge is known for its dividend. It also has one of the longest dividend growth streaks in Canada, at 30 straight years. Moreover, it offers an even greater potential to generate income than Fortis, with its dividend yield currently sitting at 5.7%.
Plus, in addition to the income it generates, Enbridge also has plenty of growth potential. What’s most impressive, though, is Enbridge’s ability to consistently balance investing funds in new projects while still returning capital to shareholders.
So, if you’ve got cash you’re looking to put to work, Enbridge is easily one of the best Canadian stocks to buy now.
A top Canadian real estate stock
In addition to Enbridge and Fortis, another top Canadian stock to buy now is Canadian Apartment Properties REIT (TSX: CAR.UN), or CAPREIT, which offers investors exposure to one of the most dependable industries in the country: rental housing.
CAPREIT owns a portfolio of tens of thousands of residential units across Canada, generating stable, recurring income from rent payments.
And since residential real estate is one of the most defensive industries in the economy, CAPREIT not only offers reliable passive income for investors, but it also has plenty of long-term growth potential.
So, if you’re looking for top Canadian stocks to buy now, I’d certainly consider CAPREIT ASAP, while it offers a 3.7% yield and trades just off the bottom of its 52-week range.
