Here Are the 3 Canadian Stocks I’d Tell a New Investor to Buy ASAP

Here are three of the best stocks for new Canadian investors to buy in this market environment and hold for years to come.

Key Points
  • Three TSX picks for new investors across styles — value, defensive growth, and income — are Cargojet (TSX:CJT), Jamieson Wellness (TSX:JWEL), and CT REIT (TSX:CRT.UN).
  • Cargojet appears deeply undervalued (forward EV/EBITDA ~6.4x), Jamieson is a defensive growth name with a modest 2.6% dividend, and CT REIT offers reliable income (~5.8% forward yield) with a decade of distribution increases.
  • 5 stocks our experts like better than Cargojet

When you’re new to investing, before you even start to think about what Canadian stocks you want to buy for your portfolio, you need to figure out your approach.

It’s essential to figure out the right mix of stocks for your preferences, whether it’s value stocks, growth stocks, dividend stocks, or a combination of the three.

There are several high-quality stocks in Canada, so understanding which businesses fit your portfolio is essential to building the optimal long-term portfolio for your needs.

So, with that being said, here are three of the best Canadian stocks to buy on the TSX and what investors they’re ideal for.

Young adult concentrates on laptop screen

Source: Getty Images

One of the best Canadian stocks to buy for value investors

With the TSX up more than 20% over the last 12 months, many of the best Canadian stocks are trading at or above their fair value. The good news for value investors, though, is that one of the best undervalued stocks in Canada isn’t just a little discounted; it’s trading ultra-cheaply.

Cargojet (TSX: CJT) is a stock that continues to be impacted by macroeconomic headwinds, but its long-term potential makes it hard to ignore.

Cargojet is perfectly positioned to capitalize on the long-term shift toward more online shopping and e-commerce. It has the fleet, the dominant position, and the partnerships in place to see significant growth once the macroeconomic environment improves.

In fact, its forward enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio is sitting at just 6.4 times. That’s not just low, that’s well below its five-year average forward EV/EBITDA ratio of 8.9 times.

Furthermore, that’s based on its current estimates for its EBITDA, which are being weighed down by the macroeconomic environment.

So, if you’re looking for value stocks or even growth stocks that are trading cheaply, Cargojet is certainly one of the best stocks Canadian investors can buy now.

A top defensive growth stock

If you’re an investor who wants growth but with a bit more reliability, Jamieson Wellness (TSX: JWEL) is one of the best Canadian stocks to buy now.

You’ve probably heard of Jamieson. It’s one of, if not the most popular health and wellness brands in Canada. The company designs, produces, manufactures, and distributes products such as vitamins, minerals, supplements, and more.

This makes Jamieson an incredibly defensive business since the goods it produces are considered essential for many consumers.

Jamieson is still in growth mode, though. That means it offers a smaller dividend, currently yielding just 2.6% and retains more of its earnings to invest in future growth.

So, although it’s a stock that’s safe and reliable, it’s not the most ideal pick if you’re looking for defensive stocks that generate significant passive income.

One of the best dividend stocks on the TSX

For passive income seekers, one of the best Canadian stocks that you can buy now and hold for years is CT REIT (TSX: CRT.UN).

CT REIT is a retail REIT that earns roughly 90% of its income from one of the best-known retail brands in Canada, Canadian Tire. In addition, Canadian Tire is also the majority owner of CT REIT.

Therefore, CT REIT isn’t just one of the most reliable retail REITs you can buy for passive income; it’s one of the best stocks in the entire real estate sector.

Plus, not only does it offer an attractive forward yield, currently sitting at roughly 5.8%, but it has also increased its annual distribution every single year since it went public just over a decade ago.

So, if you’re a new investor looking to boost the yield your portfolio generates, there’s no question CT REIT is one of the best Canadian stocks to buy now.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool has a disclosure policy.

More on Investing

Child measures his height on wall. He is growing taller.
Energy Stocks

Down 16% and Paying 5.8%: The Case for Buying Enbridge Now

Understand how Enbridge is positioning itself in the energy sector during uncertain times with significant capital investments.

Read more »

worker carries stack of pizza boxes for delivery
Investing

Why I’m Sticking With This Dividend Stock Through Volatility

Restaurant Brands International (TSX:QSR) is a standout dividend grower still worth holding amid recent industry troubles.

Read more »

Happy shoppers look at a cellphone.
Investing

Can Aritzia Stock Stay This Hot?

With continued geographic expansion, digital investment, and strong customer demand supporting its growth trajectory, Aritzia can sustain its upward momentum,…

Read more »

panning for gold uncovers nuggets and flakes
Stocks for Beginners

Gold Pulled Back From Its Record: This Royalty Stock Raised Its Dividend 18%

OR Royalties offers a different way to own gold exposure, with strong dividend coverage and a modest starting yield.

Read more »

Data center servers IT workers
Retirement

CPP and OAS Alone Probably Won’t Cover Retirement: How to Fill the Gap

Prepare for retirement by understanding the limits of CPP and OAS for your financial future. Stay informed and secure.

Read more »

House models and one with REIT real estate investment trust.
Dividend Stocks

A Perfect TFSA Stock: An 8.4% Payout Each Month

GO Residential REIT pays cash monthly and yields about 8.2% annually. Learn what backs the payout, the H&R deal, and…

Read more »

Data Center Engineer Using Laptop Computer crypto mining
Energy Stocks

I’m Watching Hammond Power’s Backlog, Now Nearly Double Last Year’s

Hammond Power's revenue backlog is up 96.9% YoY on AI data centre demand. Here's what to watch ahead of Q3…

Read more »

Forklift in a warehouse
Dividend Stocks

The Best Monthly Paying Dividend Stock on the TSX: My Pick and My Buy Price

Granite combines monthly income with a reported payout cushion, while an $80 buy price improves what a new investor receives.

Read more »