1 No-Brainer TSX Stock to Buy With $1,000 Right Now

Got $1,000 to invest? This global convenience-store giant could be a simple way to start compounding.

| More on:
Key Points
  • Couche-Tard runs about 17,000 stores worldwide, giving it scale and recession-resistant demand for everyday essentials.
  • Recent earnings were strong, and management is pushing higher-margin food, loyalty programs, and digital growth.
  • EV charging and global expansion add long-term upside, even if fuel margins and consumer spending swing short term.

So you’ve got $1,000 burning a hole in your pocket. First off: I wish. Second of all: What are you going to do with it? That kind of money can easily start compounding, creating more and more cash in your portfolio, snowballing until it’s larger than life.

But, where should you start looking? To start, think about companies with durable cash flow, global scale, and long-term growth drivers. Luckily, I have just the place to start.

jar with coins and plant

Source: Getty Images

ATD

Alimentation Couche-Tard (TSX:ATD) is a great starting point. ATD stock operates roughly 17,000 stores globally under banners like Circle K and Couche-Tard, turning into one of Canada’s best long-term compounders, climbing more than 1,500% over the last 15 years. In fact, it’s now one of the largest convenience store and fuel retailers in the world!

ATD stock currently operates across North America, Europe, and Asia, giving it geographic diversification many TSX stocks can’t match. Convenience stores remain resilient because consumers still buy fuel, coffee, snacks, and essentials during weaker economies. And it looks like more of that resilience is coming the way of investors.

ATD stock recently unveiled its “Core + More” strategy in February 2026, focusing on higher-margin food, loyalty programs, electric vehicle (EV) charging, and digital growth. Yet recent softness in the share price created a potential entry point after worries around fuel demand and cautious consumer spending. But, is that warranted?

Into earnings

Let’s take a look, shall we? During its third quarter of 2026, net earnings climbed 18.1% year over year to US$757.2 million. Diluted earnings per share (EPS) rose to US$0.82 from US$0.68, while merchandise and service revenue climbed 8.7% to US$5.8 billion. Management called it one of its strongest quarters in more than two years.

Yet even with this, ATD stock looks undervalued. The company offers a market cap currently sitting at $73.3 billion at writing, and 20 times earnings. That’s while also offering up a 1% yield for investors and 20% payout ratio, and analysts predicting a one-year share increase to $90 per share!

Future focus

The future simply looks bright for ATD stock, making it an ideal place for a $1,000 investment. Investors get exposure to global retail, fuel, EV charging, food service, and digital loyalty growth in one stock. And with management investing heavily in store modernization and higher-margin products like prepared food and beverages, there’s a lot of growth opportunity there.

In fact, EV alone is exciting. Over the long-term, EV charging is an opportunity as adoption rises. Couche-Tard already has charging stations across Europe and North America. And that’s above the plain benefits such as its recession-resistant qualities and consumer products needed no matter how slow an economy gets.

Of course fuel margins can fluctuate, consumer weakness happens and can pressure same-store sales, but scale, acquisitions, and operational discipline have all been advantages that smaller competitors just don’t have.

Bottom line

Investors don’t need a massive portfolio to start building wealth, and $1,000 can turn any investment into meaningful income over time. Even the small 1% yield can do damage with a $15,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
ATD$79.65188$0.82$154.16Quarterly$14,974.20

All together, ATD stock combines defensive characteristics with long-term growth potential, making it not just a strong stock to buy now, but one you’ll eventually look back on and wonder, “Why didn’t I buy sooner?”

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

More on Dividend Stocks

man looks surprised at investment growth
Dividend Stocks

This RRIF Tax Problem Gets More Expensive Every Year You Ignore It

A big RRSP can create an even bigger tax bill later, so planning withdrawals before 71 can reduce forced taxable…

Read more »

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

Here’s What’s Really Happening With Telus’s Dividend

Telus cut its dividend as predicted, but the stock still isn't out of the woods.

Read more »

dreaming of financial success
Dividend Stocks

Here’s My Plan for Turning $14,000 Into Lifelong TFSA Income

Canadians can turn a $14,000 TFSA or higher into a lifelong tax-free income stream with a smart investment plan.

Read more »

A family watches tv using Roku at home.
Dividend Stocks

Parents, Mark Your Calendars: Your Next CRA Cheque Comes August 20

Your next CRA payment lands Aug. 20. Here's how much parents get, plus a smart way to turn benefit dollars…

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Here’s How I’d Turn $14,000 in a TFSA Into a Cash Machine

These Canadian companies generate profitable growth, have sustainable payout ratios, and a proven track record of rewarding shareholders.

Read more »

Man looks stunned about something
Dividend Stocks

The Most Expensive TFSA Mistake Investors Are Making Right Now

Waiting for the “perfect” TFSA buying day can quietly cost you tens of thousands in lost compounding.

Read more »

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

RRSP Investors: 2 Discounted TSX Dividend Stocks to Consider Now

These stocks offer attractive dividend yields today.

Read more »

concept of growth
Dividend Stocks

TFSA Income: 2 High-Yield Stocks to Consider Today

These stocks currently offer yields well above 5%.

Read more »