Although it might feel like you need thousands of dollars to start investing, that’s not actually the case. Of course, having more capital up front helps, but what really matters is how consistently you save and the quality of the Canadian stocks you choose to buy.
Even a small starting amount like $500 can go a long way if it’s invested in high-quality companies with real competitive advantages and plenty of growth ahead of them.
The key is to focus on stocks that are both strong today and positioned to keep expanding in the future.
These are companies with proven track records of profitability, solid balance sheets, and business models that can withstand different market environments.
So, if you’ve got cash that you’re looking to start putting to work, here are three no-brainer Canadian stocks you can buy right now that can help you grow your wealth steadily for years.
Source: Getty Images
One of the best growth stocks that Canadian investors can buy
If you’re looking for top Canadian stocks to buy now that you can hold for years, there’s no question that goeasy (TSX: GSY) is one of the best to consider.
goeasy, a company that provides non-prime loans to consumers who don’t qualify for traditional bank credit, has quietly become one of the most impressive growth stories on the TSX.
In fact, over the last five years, its revenue has grown from just over $600 million annually to more than $1.5 billion. Furthermore, its normalized earnings per share (EPS) have grown from $5.17 in 2019 to $16.71 last year, an increase of more than 223% in only half a decade.
Despite lending to higher-risk customers, goeasy has built a remarkably strong track record of managing credit risk. That consistency is one of the main reasons for its phenomenal growth, and why it continues to have a ton of growth potential in the future.
Plus, in addition to goeasy’s unbelievable growth potential, it also pays a growing dividend with a current yield of roughly 3.5% today.
So, if you’re looking for top Canadian stocks to buy now, there’s no question that goeasy is a no-brainer.
One of the best retail stocks on the TSX
In addition to goeasy, another impressive growth stock that Canadian investors can buy today is Aritzia (TSX: ATZ).
Aritzia is a vertically integrated retail stock that’s seen explosive growth over the last decade, first expanding across Canada before now rapidly expanding its footprint in the United States.
In fact, in the last five years alone, its revenue has increased from $980 million annually to more than $2.7 billion. That’s a compound annual growth rate (CAGR) of 22.8%.
Furthermore, its normalized EPS has increased from $0.87 to $1.98 over that five-year stretch, a CAGR of 17.1%.
Therefore, not only does Aritzia have exciting growth potential, but it has also proven how resilient it can be, as much of the growth in the last five years came during the pandemic, when shutdowns significantly impacted many retail stocks.
So, if you’re looking for a high-quality growth stock with years of potential, there’s no question that Aritzia is another no-brainer Canadian stock to buy now.
One of the best defensive growth stocks in Canada
Although goeasy and Aritzia are both high-quality companies, both businesses are smaller and more volatile, giving them slightly more risk.
So, if you’re looking for a Canadian growth stock to buy now with a bit more resiliency, there’s no question Alimentation Couche-Tard (TSX: ATD) is a no-brainer.
Couche-Tard is one of the best stocks to buy because it combines a defensive business model with steady organic growth and smart acquisitions.
For years, Couche-Tard has expanded its global network of gas stations and convenience stores in order to expand its footprint, drive brand recognition, and scale its costs.
And because people need fuel, food, and convenience items no matter what the economy’s doing, Couche-Tard’s business is naturally defensive. Its cash flow stays steady even during uncertain times, which is exactly what makes it such a reliable long-term investment.
So if you’ve got some cash that you’re looking to put to work in a reliable defensive growth stock, there’s no question that Couche-Tard is one of the best companies Canadian investors can buy now.
