3 No-Brainer Stocks to Buy With $7,000

Three TSX stocks are no-brainer buys if you want to get the most out of your $7,000 investment.

| More on:
Man meditating in lotus position outdoor on patio

Source: Getty Images

Key Points

  • For a $7,000 TFSA allocation, Killam Apartment (KMP.UN), Cardinal Energy (CJ) and Discovery Silver (DSV) are recommended as sector‑diverse picks—residential REIT (stability), oil & gas (high income), and precious‑metals growth.
  • KMP.UN yields ~4.08% ($17.73) and can generate about $71/month on $7,000; CJ yields ~9.17% ($7.73) with drilling and SAGD upside, while DSV ($5.41) is a high‑volatility, high‑reward silver play (YTD ≈+662%) backed by the Cordero project.
  • 5 stocks our experts like better than [Cardinal Energy] >

Share price surges often accompany a bull market, like the one seen on the TSX in 2025. The positive environment is also favourable to Tax-Free Savings Account (TFSA) investors intending to maximize their annual contribution limits.

For a $7,000 investment today, Killam Apartment (TSX:KMP.UN), Cardinal Energy (TSX:CJ), and Discovery Silver (TSX:DSV) are all compelling options. Each company is a no-brainer buy within its respective sector. Your ultimate choice will depend on the sector you’re most comfortable with and your risk tolerance.

Residential real estate

Killam Apartment, a $2.2 billion real estate investment trust (REIT), owns and manages multi-family residential apartments and manufactured home communities (MHC). This REIT is growth-oriented with a long-term growth strategy in place. Its core markets include Atlantic Canada, Ontario, Alberta, and British Columbia.

REITs are passive income providers known for their monthly dividend payments. At $17.73 per share, the dividend yield is 4.1%. KMP.UN started paying dividends in March 2007 and hasn’t missed a monthly distribution. Your $7,000 investment can generate $71.05 monthly, while keeping the principal amount intact.

Killam benefits from the strong housing demand. The REIT is ready to leverage its operating platform and increase density at existing sites to respond to housing needs. Its President and CEO, Philip Fraser, expects to achieve same-property net operating income (NOI) growth above 6% for 2025. In the first half of the year, NOI increased 7.1% year-over-year to $123.1 million.

Income and growth

The energy sector is perennially volatile, but Cardinal Energy is hard to miss in October. At $7.73 per share, the year-to-date gain is 29.2%. Moreover, current investors partake in the mouth-watering 9.2% dividend yield. Like REITs, CJ’s payout frequency is monthly. This monthly distribution was introduced by management in June 2022. The overall return in five years is 2,353.4%-plus.

This $1.3 billion oil and natural gas company operates in four core areas in Western Canada, focusing on low-decline oil. Besides a balanced portfolio, Cardinal Energy boasts a deep development drilling inventory. The company anticipates heightened drilling intensity on its conventional assets in 2026 to more normalized rates.

In 2023, Cardinal captured several potential Steam-Assisted Gravity Drainage (SAGD) thermal properties after acquiring assets from Broadway Energy. The company has started developing these SAGD properties to materially increase its low decline production base and free cash flow.

Safe haven

The basic materials sector has lifted the TSX to new all-time highs and is up 81.6% year-to-date. Discovery Silver is among the winning precious metals stocks. At $5.41 per share, DSV has advanced nearly 662% from year-end 2024. A $7,000 investment at year-end 2024 would be worth $53,338.03 today.

The $4 billion gold producer has several growth projects in Canada that could more than double production in the coming years. In Q2 2025, net earnings reached US$5.5 million compared to a US$5.1 million net loss in Q2 2024.

Discovery Silver also owns the Cordero mine in Mexico, which is one of the world’s largest underdeveloped silver reserves. The world-class silver project has the potential for large-scale, low-cost silver production.

Get your money’s worth

Killam Apartment, Cardinal Energy, and Discovery Silver are no-brainer stocks to buy today. You’ll get your money’s worth regardless of the investment amount.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Here’s the Average TFSA Balance at Age 55 in Canada

Turning 55? See how a TFSA and a low‑volatility income ETF like ZPAY can boost tax‑free retirement cash flow while…

Read more »

dividends can compound over time
Dividend Stocks

TD Bank’s Earnings Beat & Dividend Hike: Told You So!

The Toronto-Dominion Bank (TSX:TD) just released its fourth quarter earnings and hiked its dividend by 2.9%.

Read more »

senior couple looks at investing statements
Dividend Stocks

Here’s the Average TFSA Balance at Age 54 in Canada

Holding the iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) in a TFSA can maximize your wealth.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Top-Tier TSX Stock Down 18% to Buy and Hold Forever

Down almost 20% from all-time highs, Canadian Pacific Kansas City is a blue-chip TSX stock that offers upside potential in…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

How to Use Your TFSA to Earn $275 in Monthly Tax-Free Income

Discover how True North Commercial REIT’s government‑anchored leases could help turn a TFSA into monthly, tax‑free income even amid a…

Read more »

dividends can compound over time
Dividend Stocks

Got $3,000? 3 Top Canadian Stocks to Buy Right Now

These three Canadian stocks offer attractive buying opportunities.

Read more »

how to save money
Dividend Stocks

Build a Cash-Gushing Passive-Income Portfolio With just $40,000

Building a passive income portfolio can be as simple as investing in dividend ETFs or prudently in individual stocks more…

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Elite Canadian Dividend Stocks Ready to Soar Higher in 2026

Let's dive into three elite Canadian dividend stocks, and why they make excellent long-term holdings for those seeking stability and…

Read more »