If you are a new investor, focusing on large-cap stocks could be a great starting point. These companies have established business models, diversified revenue streams, and strong balance sheets, which enable them to withstand short-term market volatility. As a result, they offer stability, consistent income through dividends, and moderate but reliable long-term growth. Moreover, investors should focus on diversifying their portfolio to spread risk.
Against this background, here are five TSX stocks that could be a great starting point for new Canadian investors.
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Top TSX stock #1: Dollarama
Dollarama (TSX: DOL) is a high-quality Canadian stock for new Canadian investors. It offers stability, income, and growth. The Canadian value retailer operates a defensive business focused on low-priced everyday essentials, seasonal goods, and general merchandise. This strategy attracts consistent foot traffic and supports same-store sales growth across all market conditions.
Dollarama has raised its dividend annually since 2011, supported by reliable cash flow and disciplined cash allocation. Moreover, with plans to expand store locations, leverage third-party delivery platforms, and maintain a balanced product mix, including increased penetration of private label products, Dollarama is well-positioned for continued growth.
Top TSX stock #2: Fortis
Fortis (TSX: FTS) is a solid choice for new Canadian investors looking for steady income, stability, and moderate growth. The electric utility generates predictable revenue and consistent cash flow, even during economic downturns. This defensive operating structure and growing cash flow support regular dividend increases and growth.
Fortis plans to invest about $28.8 billion over five years to expand its regulated assets, which should drive earnings growth and support annual dividend increases of 4%–6% through the decade. Moreover, with rising electricity demand, Fortis is well-positioned to deliver dependable long-term returns.
Top TSX stock #3: Bank of Montreal
New investors could consider investing in top Canadian banks for income and growth. In the banking space, Bank of Montreal (TSX: BMO) is a compelling stock offering solid growth and dividend income. It has a remarkable 197-year record of dividend payments and steady annual dividend growth of about 5.7% over the past 15 years.
The financial services giant’s diversified revenue streams, strong balance sheet, and solid credit quality support consistent earnings. Expansion into high-growth markets and continued investment in technology and AI are expected to improve efficiency. While its stock is up roughly 69% in the past year, it has room to run. BMO’s momentum and cost discipline position it well to sustain dividend increases and long-term share price growth.
Top TSX stock #4: Hydro One
Hydro One (TSX: H) is a reliable choice for new investors. It is one of Canada’s largest electricity transmission and distribution companies. It operates a regulated business with predictable earnings and no exposure to volatile commodity prices. This stability supports its share price and consistent dividend growth, which has averaged about 5–6% annually in recent years.
With its rate base expected to grow around 6% annually through 2027, earnings and dividends should continue to grow steadily. Backed by a strong balance sheet and ongoing infrastructure investments, Hydro One is well-positioned to benefit from rising electricity demand and grid modernization.
Top TSX stock #5: Manulife Financial
Manulife Financial (TSX: MFC) is an attractive long-term option for new Canadian investors. The financial services company offers a broad range of insurance and wealth management products. It is seeing solid growth in new insurance business, with Contractual Service Margin rising significantly.
Although its Global Wealth and Asset Management unit experienced outflows in late 2025, it still delivered steady earnings and margins, reflecting the platform’s resilience. Its growth prospects remain solid, supported by higher insurance sales, expansion in Asia, and potential acquisitions.
Manulife also rewards shareholders through consistent dividend increases, with payouts growing at about 10% annually since 2015. Its diversified operations and steady growth make it a compelling buy-and-hold stock.
