The Best Stocks to Invest $1,000 in Right Now

Three TSX stocks with market-beating returns are compelling opportunities for investors with a small capital base.

Key Points
  • Renewed conflict in the Middle East pushed oil prices higher and prompted market sell‑offs, creating a potential entry window for investors looking to deploy $1,000.
  • Three TSX picks: Tamarack Valley Energy (TSX:TVE) — low‑cost oil producer with strong Q4 2025 profits and healthy free cash flow; Diversified Royalty (TSX:DIV) — monthly dividend payer yielding ~6.7%; and Air Canada (TSX:AC) — revenue/earnings recovery with analysts’ targets implying ~42% upside.
  • 5 stocks our experts like better than [Tamarack Valley Energy] >

The investment landscape in 2026 was violently reshaped by a renewed military conflict in the Middle East. Surging oil prices and the threat of global supply disruption triggered market sell-offs in recent days. Nonetheless, the downturn opens an entry window, especially for investors looking for the best stocks to invest $1,000 in right now.

Tamarack Valley Energy (TSX: TVE), Diversified Royalty (TSX: DIV), and Air Canada (TSX: AC) are compelling opportunities. The first two continues to beat the market amid the extreme volatility, while the third display recovering fundamentals.

Man holds Canadian dollars in differing amounts

Source: Getty Images

Low-cost structure

Tamarack Valley is coming from a transformative year, highlighted by operational efficiency and significant profitability growth in Q4 2025. The $4.9 billion oil and gas company operates in the Western Canadian Sedimentary Basin. It benefits from repeatable, predictable and economic long-life resource plays.

At $10.32 per share, TVE’s year-to-date gain is 29.3%. In addition, investors partake in the modest 1.66% dividend. In the three months ending December 31, 2025, net income climbed 870% to $61.9 million. For the year, free cash flow (FCF) reached $390 million.

Given its low-cost structure and low break-even oil price (US$40 per barrel), expect Tamarack to keep generating sustainable total returns for shareholders. The current WTI price per barrel is US$89.

Dividend titan

Dividend Royalty is a dividend titan paying monthly cash dividends. At $4.05 per share (+10.2% year to date), income investors feast on the juicy 6.72% dividend. You’ll earn $5.60 per month on a $1,000 investment from this pure-play income stock.

The $710.3 million corporation collects royalties or a percentage of gross sales from a diverse group of royalty partners. Based on its latest earnings report (first three months of 2025), net income rose 13.6% year over year to $25.7 million. Its CEO, Sean Morrison, said DIV’s portfolio continues to deliver strong organic growth in a challenging economic environment.

Mr. Lube + Tires is the largest contributor to royalty income. BarBurrito, Mr. Mikes Steakhouse, and Cheba Hut represent the food and beverage sector. For services, the partners are Nurse Next Door, Oxford Learning, and Stratus Building Solutions. Bank of Montreal supports the Air Miles loyalty program.

Strong market position

A potential energy crisis could impact the transportation sector, including airlines. Still, some market analysts see Air Canada as a good prospect. The country’s flagship carrier enjoys a dominant market position and, notably, strong revenue recovery. The $5.2 billion company reported record revenues and strong earnings in Q4 2025.

In the three months ending December 2025, operating revenues topped $5.77 billion, while net income reached $296 million compared to the $644 million net loss in Q4 2024. Its President and CEO, Michael Rousseau, Air Canada entered the year with a strong position.

At $17.78 per share, AC is down 7.83%. However, based on analysts’ 12-month average price target of $25.34, the upside potential is +42.5%.    

Invest $1,000 wisely

You don’t need substantial capital to invest in Tamarack Valley, Diversified Royalty, or Air Canada. Moreover, you can allocate $1,000 across the three stocks to have a balance of income and growth.

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

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