When you have a large sum at your disposal, the temptation to splurge increases. You end up buying things you don’t need. And if you are not splurging, you are parking the money in term deposits to make it available for use.
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Investing in stocks
Many Canadians refrain from investing in stocks because of the risk that the invested amount may fall. Your $40,000 may become $35,000 or $30,000 in the short term. But this dip might be temporary because of market conditions. If you sell a fundamentally strong stock at the dip, you are making that loss permanent. The risk of staying away from cash for three to seven years is what makes many Canadians lose the opportunity to double their money.
Instead, you should stay invested if your reason to be bullish on the stock is still strong. Don’t let short-term volatility cloud your long-term returns.
Top Canadian stocks to buy with $40,000
If you have $40,000 to invest, here is a balanced investment strategy for growth during economic recovery, dividends in uncertainty, and a hedge in crisis. Having four stocks that react differently to a situation can mitigate downside risk and enhance returns through equity growth opportunities.
Growth stocks for uncertainty
Shopify (TSX:SHOP) and Topicus.com (TSXV:TOI) are two Canadian tech stocks worth investing a lump sum in. They are trading near their lows as economic uncertainty slows shopping and business activities.
Shopify stock has slipped 32% so far this year, and a 30–40% seasonal dip is perfectly normal for it. Going by the fourth quarter figures, the e-commerce giant is enjoying consistent double-digit growth in revenue and free cash flow. Its international expansion is delivering strong growth. It is now adopting artificial intelligence (AI) to enhance customer support and returns, optimize the website, and streamline marketing. The AI-driven revenue could boost its revenue growth in the years to come.
AI adoption, consistency in cash flows, profits, and revenue, and a share price dip make Shopify a buy right now. The stock could surge 50% on a holiday season rally and grow $10,000 to $15,000, with limited downside risk of 5–10%.
Topicus.com stock has slipped 52% since July 2025 due to a management change at the parent company, Constellation Software, and uncertainty around AI’s impact on software. Topicus.com acquires vertical-specific software companies in Europe. It reported a sharp dip in 2025 net income because it deducted the acquisition cost of a 9.9% stake in Asseco under the equity method to arrive at net income. Moreover, it impaired intangible assets of companies that didn’t meet their goals.
However, these expenses are one-off, and the revenue and profits accretive from Asseco’s acquisitions could help boost earnings in the coming months.
Dividend stocks for uncertainty
The market uncertainty and geopolitical tensions are driving demand for insurance. Power Corporation of Canada (TSX:POW) increased its dividend by 9% as its two largest holdings, Great-West Lifeco and IGM Financial. Power Corporation has a strong portfolio of financial companies, with the above two focused on dividend earnings and GBL and Power Sustainable focused on asset value growth.
Power Corporation stock has slipped 10% from its December 2025 high, creating an opportunity to buy the dip and lock in a 4% yield and dividend growth.
Lundin Gold
Another stock to buy in the current market environment is Lundin Gold (TSX:LUG). The gold miner’s share price fell 23% in March amidst the Iran war. Once the energy shock cools, the gold price could surge as central banks refill their depleted gold reserves. Lundin Gold has zero debt and a low all-in-sustaining cost (AISC) that makes it an attractive investment. The stock may not grow in a strong economy, but it will hedge your portfolio in a downturn.
So, any dip in other stocks will be slightly offset by an increase in Lundin Gold’s share price.
