The current investment landscape is conducive to investors. Canadian stocks have generally performed well for most of 2025, notwithstanding US tariffs and trade tensions.
My top 2 TSX stocks to buy right now are a perfect combination. The first is a surging mining stock, while the second is a generous dividend payer. You’d be investing for income and growth with Discovery Silver (TSX:DSV) and Atrium Mortgage Investment Corporation (MIC) (TSX:AI), respectively.
Diversified precious metal producer
Toronto-based Discovery Silver is a strong buy for the visible long-term upside from its Cordero Project in Mexico. The mine boasts one of the world’s largest undeveloped silver deposits. With its 19-year mine life and the potential to become a Tier 1 silver mine, expect strong economic returns.
As of this writing, this mid-cap stock is outperforming the TSX by a mile. At $6.26 per share, the year-to-date gain is 782%. Had you invested $1,000 at year-end 2024, your money would have grown to $8,816.90 today.
The $5 mineral exploration company owns the high-quality Cordero Project and the Porcupine gold mine properties near Timmins, Ontario. Both the underdeveloped silver reserve in Mexico and the prolific gold camp in Canada will enable Discovery Silver to scale.
In the first three quarters of 2025, the company reported improved earnings performance and stronger cash flow generation. Net earnings and free cash flow (FCF) reached $89.2 million and $104.3 million, respectively, compared to a net loss of $9.5 million and negative FCF of $20 million a year ago.
According to management, the silver and gold operations transformed Discovery Silver into a diversified North American-focused precious metals producer. Silver is used in green energy technologies, and demand is rising. The acquisition of the Porcupine complex improved profitability and generated significant cash flow.
Reliable dividend payer
Atrium MIC is ideal for income-focused investors seeking monthly payouts. This $530 million alternative mortgage lender pays a generous 8.34% dividend yield. The current share price is $11.06.
The recent Bank of Canada interest rate cut boosted mortgage lending activity. In the first three quarters of 2025, Atrium’s net income increased nearly 5% year-over-year to $36.9 million. The provision for mortgage losses decreased 66.6% to $3.9 million from a year ago.
“Atrium continues to deliver strong and stable earnings per share, even amid a challenging economic environment. Loan originations for the first nine months of 2025 have increased compared to the same period last year,” said Rob Goodall, CEO of Atrium. He added that the results reflect the underwriting team’s expertise.
Atrium maintains high-quality standards and low loan-to-value (LTV) ratios. Notably, 86% of the mortgage portfolio consists of first mortgages, with an average LTV of 60.8%. Furthermore, the MIC is a reliable dividend payer. It hasn’t missed a payout since September 2012.
Two investment strategies
The basic materials sector, of which Discovery Silver is a part, is likely to sustain strong momentum due to economic uncertainty. On the other hand, Atrium MIC should benefit from the central bank’s rate-cutting cycle. As mentioned, you combine the income and growth strategies if you buy both stocks.
