When it comes to investing, the hardest thing for newcomers is often just getting started. Once you have some cash saved up and you’re looking for some of your first Canadian stocks to buy, it’s understandable to feel overwhelmed.
With thousands of stocks available, endless headlines, and constant market noise, it can be difficult to figure out where to begin.
However, that’s why it’s essential to remember the primary purpose of investing. To put your money into high-quality businesses that can steadily compound your wealth over years or even decades.
That’s why building a strong foundation is so important, especially when you first start out. Furthermore, the earlier you start, the longer your money has to grow, and the bigger the snowball effect becomes.
Without a doubt, the best approach for new investors is often to start with companies that are easier to understand, operate in essential industries, and have proven track records of stability and growth.
These are the types of Canadian stocks that can form the backbone of a portfolio. So, if you’re new to investing and looking for Canadian stocks to buy now, here are three beginner stocks to consider ASAP.
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One of the best defensive growth stocks Canadian investors can buy now
If you’re looking to build a portfolio of high-quality and reliable stocks, there’s no question that one of the best to start with is Brookfield Infrastructure Partners (TSX: BIP.UN).
The reason why Brookfield is one of the best stocks for new investors to buy, and a top stock to own for the long haul, is that it’s a global leader in owning and operating essential infrastructure assets. These assets include everything from utilities and pipelines to transportation networks and data centres.
Therefore, owning businesses that not only generate stable, inflation-linked cash flows but are also defensive allows Brookfield to weather virtually any economic environment.
Additionally, the company continually makes new acquisitions and enhances the economics of its existing operations to consistently drive growth for investors.
And not only does Brookfield offer a tonne of capital gains potential over the long haul, it pays an attractive dividend currently yielding upwards of 5.1%, making it one of the best long-term stocks that Canadian investors can buy now.
A top growth stock to buy now and hold for decades
In addition to Brookfield, another incredible defensive growth stock that Canadian investors will want to buy ASAP is Dollarama (TSX: DOL).
However, while Brookfield was a bit more defensive than growthy, Dollarama offers a bit more growth than defence, even if it is one of the most defensive stocks you can buy.
In fact, as a discount retailer with an incredibly popular brand known nationwide, Dollarama is one of those rare companies that seems to defy traditional investment rules.
Typically, defensive stocks trade with modest growth expectations, but Dollarama has proven year after year that it can grow rapidly in any economic environment. For example, in recessions, consumers flock to its value-priced goods, while in strong economies, its everyday convenience, wide selection of goods, and strong execution keep customers coming back.
Because of Dollarama’s superior growth and incredible consistency, the stock almost always trades at a premium. That’s why, with Dollarama trading nearly 10% off its 52-week high, it’s one of the best Canadian stocks to buy ASAP.
A top stock to buy for passive income seekers
While Dollarama and Brookfield are both high-quality stocks that any investor can consider, if you’re a dividend investor looking to grow the passive income your portfolio generates, one of the best Canadian stocks to buy now is Pizza Pizza Royalty (TSX:PZA.UN).
Pizza Pizza is the ideal dividend stock for new investors to buy ASAP because it’s an easy-to-understand business that is considerably less volatile than the broader market, pays an attractive dividend that currently yields roughly 6%, and returns cash to investors monthly.
For years, it has proven to be highly reliable in various economic environments and one of the top dividend stocks to buy and hold for the long haul. So if you’re a new investor looking to boost the passive income your portfolio generates, Pizza Pizza is easily one of the best Canadian stocks to buy now.
