The Canadian Stocks I’d Prioritize if I Had $5,000 to Invest Right Now

These two TSX stocks offer a good combo of growth and stable income, making them excellent picks to consider for your self-directed investment portfolio.

Key Points
  • Split $5,000 in your TFSA equally between 5N Plus (TSX:VNP) and Toronto‑Dominion Bank (TSX:TD) to pair growth exposure with dependable dividend income.
  • 5N Plus (VNP) is a specialty semiconductor/performance‑materials leader (2025 revenue +35%, net earnings +244%) and offers strong upside at around $33.41/share.
  • TD (TSX:TD) delivers stable income (≈3.0% yield at ~$143) and long dividend pedigree but carries U.S. AML‑remediation and regulatory risk despite solid recent earnings.

Becoming a successful stock market investor doesn’t always mean having millions to throw into the market and see if your bets pull through for you. Even with an amount as small as $5,000, invested carefully in the stock market, it can provide a good start. Building a self-directed portfolio of high-quality stocks in a Tax-Free Savings Account (TFSA) and letting it grow over the years can help you unlock true financial freedom.

If I had $5,000 to invest and enough contribution room available in my TFSA, I would split it evenly across one growth-focused and one income-focused equity security from the TSX. Held in a TFSA, I can count on the growth stock to deliver outsized long-term gains. Since it will have its ups and downs, I can rely on the dividend stock to provide regular returns through quarterly dividends and offset potential losses.

Against this backdrop, I will discuss two TSX stocks that fit the bill for potential holdings to consider for your portfolio.

Couple working on laptops at home and fist bumping

Source: Getty Images

5N Plus

5N Plus (TSX: VNP) is a $3 billion market-capitalization leader in the production of specialty semiconductors and performance materials that are critical for use across several important industries, including security, renewables, space, pharmaceuticals, and more. Headquartered in Montreal, the company uses proprietary technologies to produce the vital ingredients that its clients use.

The stock had a record-setting year in 2025, with its revenue increasing 35.2% year over year, and its net earnings skyrocketed by 244.2%. As of this writing, VNP stock trades for $33.41 per share, up by 85.61% from 12 months ago. Considering the growing demand for its products and services, there might be plenty more growth to come in the next few years. Investing right now might help you capture outsized long-term gains.

Toronto-Dominion Bank

Toronto-Dominion Bank (TSX: TD) is a $238.53 billion market-capitalization giant in the Canadian financial services sector. One of the Big Six Canadian banks, TD Bank stock is one of the top picks for Canadian investors seeking long-term passive income through reliable dividend distributions. TD Bank has a 169-year streak of paying its quarterly dividends to investors without fail.

The bank faced regulatory troubles in the US related to an Anti-Money Laundering (AML) investigation and absorbed the US$3 billion fine imposed on it. The bank continues its remediation efforts to strengthen its money laundering controls. A bank stock that has been around for almost two centuries and paid dividends for most of that time can be a reliable income-focused investment.

As of this writing, it trades for $142.93 per share and pays $1.08 per share each quarter, translating to a 3.02% dividend yield that you can lock into your self-directed portfolio today.

Foolish takeaway

By investing in equity securities that balance growth and stability, you can unlock what you need for long-term wealth-building. Held in a TFSA, you can count on your investments to provide you with tax-free returns that can help you achieve the financial freedom that successful investors enjoy. To this end, TD Bank stock and VNP stock can be good investments to consider.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

person with spyglass looks at ocean horizon
Dividend Stocks

Dividend Investors: Don’t Overlook Peyto! Its Yield Is a Thing of Beauty

Peyto Exploration & Development (TSX:PEY) is an underrated energy stock with a colossal yield and a dirt-cheap multiple.

Read more »

Piggy bank wrapped in Christmas string lights
Dividend Stocks

The $7,000 TFSA Move Most Canadians Leave Until December

An earlier TFSA contribution can simplify your plan, even when the immediate tax saving is smaller than you expect.

Read more »

diversification is an important part of building a stable portfolio
Dividend Stocks

Diversification 101: How Beginners Can Protect Against Market Shocks

Stocks like TD Bank and Fortis provide an anchor to a well-diversified portfolio for resilient long-term performance.

Read more »

man makes the timeout gesture with his hands
Dividend Stocks

Why Dividend Cuts Happen and How to Spot the Warning Signs

Learn why dividend cuts happen and how to spot warning signs, using BCE and TELUS to examine cash flow, debt,…

Read more »

woman stares at chocolate layer cake
Dividend Stocks

Just Turned 50 With Little Saved? Here’s Where to Start

This investing strategy can reduce risk while still delivering decent yield.

Read more »

Trans Alaska Pipeline with Autumn Colors
Dividend Stocks

1 Top Canadian Dividend Stock Down 17% to Consider Now for Lifelong Income

This company has increased the dividend annually for more than three decades.

Read more »

Senior uses a laptop computer
Dividend Stocks

A 4.9% Dividend Stock I Plan to Hold Long Term: What $5,000 Would Collect

This is a solid utility stock to consider on dips for a long-term portfolio with a focus on growing income.

Read more »

shopper carries paper bags with purchases
Dividend Stocks

Your GIC Pays 3% to 4%: This TSX Stock Pays You Every Month Instead

SmartCentres pays more income than an illustrative GIC, but a modest unit-price decline could erase the first-year advantage.

Read more »