The Best TSX Stocks for Canadians to Buy With $1,000 on Hand

Got $1,000? Three TSX compounders can kick-start long-term growth and add growing income.

Key Points
  • TFI International buys undervalued carriers, fixes them, and compounds
  • Goeasy lends to non-prime borrowers, delivering high margins, and steady growth
  • Dollarama thrives in all economies with low prices

Even $1,000 can create a strong investment, and don’t you think otherwise. This amount gives you a starting stake that can grow far more than most people expect once compounding kicks in. A small amount invested in a strong stock begins generating returns right away, and those returns produce their own gains year after year. With consistent contributions, that initial $1,000 becomes the foundation of a snowball effect where growth accelerates over time. So let’s look at some TSX stocks that could spark some strong long-term growth.

stocks climbing green bull market

Source: Getty Images

TFII

TFI International (TSX: TFII) gives investors instant exposure to a company that has mastered the art of long-term compounding. TFII transformed itself from a Canadian trucking operator into a North American logistics powerhouse by doing one thing exceptionally well. That’s buying undervalued transportation companies, fixing them, and turning them into highly profitable operations. This proven acquisition strategy has helped TFII grow revenue, margins, and earnings at a pace few industrial companies can match. With supply chains still modernizing, e-commerce expanding, and North American re-shoring boosting freight demand, TFII sits at the centre of several long-term tailwinds.

Furthermore, the TSX stock has built a deeply diversified logistics network that spans truckload, less-than-truckload (LTL), package delivery, and contract logistics across Canada, the U.S., and Mexico. That diversity protects earnings during downturns. The TSX stock also maintains disciplined capital allocation, focusing on high-return acquisitions and operational efficiency rather than chasing risky expansion. With a strong balance sheet, rising dividends, expanding U.S. presence, and a long runway for further consolidation in a fragmented industry, TFII is built to keep compounding.

GSY

Goeasy (TSX: GSY) is another solid option as it gets investors into one of the fastest-growing financial stocks on the TSX, and it’s a TSX stock that has compounded earnings at double-digit rates for more than a decade. GSY operates in the non-prime lending space, a segment underserved by traditional banks but consistently in demand across economic cycles. That niche positioning allows goeasy to generate high margins, strong loan growth, and stable cash flow even when interest rates move or the broader economy slows.

The TSX stock offers a unique combination of scalability and resilience. As goeasy expands across Canada and enhances its digital lending channels, the company can grow without dramatically increasing costs. Therefore earnings can compound faster than revenue. Meanwhile, its payout ratio remains comfortably low, ensuring the dividend has room to grow for years. Management’s commitment to capital discipline only increases its long-term potential. And because the market often undervalues non-bank lenders compared with traditional banks, GSY trades at a reasonable valuation despite its exceptional growth record.

DOL

Dollarama (TSX: DOL) is an excellent buy with just $1,000. The TSX stock is one of Canada’s most reliably growing retail giants, a company that has expanded earnings, opened new stores, and increased margins almost every single year for over a decade. Dollarama thrives in every economic environment, but especially in periods of inflation and tighter household budgets. Its business model is simple but incredibly powerful: low prices, fast inventory turnover, and tight cost control. Because Dollarama owns much of its distribution system and negotiates directly with suppliers, it protects its margins better than most retailers. That operational strength shows up in the numbers with double-digit earnings growth, rising same-store sales, and strong cash flow that fuels expansion into hundreds of new locations across the country.

Yet it’s not done. The TSX stock continues to open dozens of stores each year in Canada, but its international arm, Dollarcity and The Reject Shop, is becoming an even more powerful catalyst. Operating in fast-growing Latin American markets like Colombia and Guatemala, Dollarcity has been expanding at a rapid pace. Now the TSX stock is doing this again in Australia through The Reject Shop.

Bottom line

Not only are these solid, growing TSX stocks, each offers dividends. In fact, here’s what $1,000 in each could earn today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND TOTAL ANNUALPAYOUTFREQUENCYTOTAL INVESTMENT
GSY$135.607$5.84$40.88Quarterly$949.20
TFII$122.648$2.62$20.96Quarterly$981.12
DOL$202.454$0.42$1.68Quarterly$809.80

So if you’re looking for solid companies to make the most of $1,000, these are the three to buy on the TSX today.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama and TFI International. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My $14,000 TFSA for Constant Income

If you have $14,000 saved in your TFSA, here is one easy investment strategy to earn $50 of tax-free monthly…

Read more »

woman looks at iPhone
Dividend Stocks

I’m Not Selling Telus After the 55% Dividend Cut: Here’s Why

Contrary to what the market seems to be saying, Telus Corporation (TSX: T) still has a lot going for it.…

Read more »

monthly calendar with clock
Dividend Stocks

A No-Nonsense 3.7% Dividend Stock That Can Pay Retirees Monthly

This no-nonsense dividend stock has returned more than $3.4 billion to shareholders through dividends since 2013.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »

Woman in private jet airplane
Dividend Stocks

Make $100 a Month Tax-Free: How Much to Invest in Diversified Royalty and Where

The TFSA is the ultimate investment account to place your money and earn tax-free income.

Read more »

man in bowtie poses with abacus
Dividend Stocks

Passive Income From Dividends: What Canadians Can Realistically Expect

Here's the actual dividend math the passive income gurus won't show you.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

RRSP, TFSA or Both? A Quick Guide by Income Level

Your RRSP and TFSA are complementing accounts that you can use to shield your income from taxes.

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Buying Your First Home? The $8,000 FHSA Deduction Most Renters Miss

An eligible renter's $8,000 FHSA contribution can save $2,400 at a 30% tax rate, with the purchase date guiding investments.

Read more »