Here Are The 3 Canadian Stocks I’d Tell a New Investor to Buy ASAP

Discover strategies for investing in stocks that can help you thrive in a market filled with volatility and uncertainty.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published November 11, 9:30 pm EST

Are you new to investing? The stock market can be exciting and tricky at the same time. On the one hand, you can earn a 7% annual yield. On the other, there are 55% dividend cuts. A stock could rally 200% in two years, but then dip 45% in one month. In these market extremes, you can earn stable returns through a mix of dividend and growth stocks.

man studies at computer — Source: Getty Images

How can new investors invest in the current markets?

Market volatility is a perfect opportunity to invest. The current market is riddled with high inflation, rising interest rates, and uncertainty about how US President Donald Trump will react to the midterm election outcome. The best way to navigate uncertainty is to avoid volatile stocks and those with high leverage. Instead, focus on Canadian stocks least affected by foreign policies and geopolitical tensions, as navigating hot sectors of energy and artificial intelligence (AI) requires stock market experience.

Three Canadian stocks for new investors

New investors are better off buying stocks with long-term growth potential.

Loblaw stock

Loblaw (TSX: L) stock has outperformed grocery peers, growing 181% over the last five years. Driving this growth is Loblaw’s digital presence, hard discount retail, and Shoppers Drug Mart. Loblaw has been opening new stores and increasing same-store net income. Three percent revenue growth adds $2 billion in revenue. The retailer is targeting to accelerate growth through various initiatives.

First, it is commercializing its supply chain as a service, unlocking net income from its back-end operations.
Second, it is growing its ad revenue from retail media and data, where companies can display ads in-store, on-site, and on digital platforms.
Third, Loblaw is monetizing its consumer reach by offering Canadians more than groceries: Lifemark, a community-based rehabilitation network, PC Optimum loyalty program, and Specialty healthcare.

By unlocking new revenue streams and improving operating leverage, Loblaw aims to grow sales by 2–3% and operating profit by 4–6% in the medium term. It will also continue to buy back shares and grow earnings per share by 8–10%. This growth model, plus the defensive nature of the business, makes Loblaw stock a buy. When inflation hits household spending, when tariffs make US goods expensive, Loblaw sees more footfall.

CT REIT

Speaking of retail, Canadian Tire is another retailer that caters to completely different needs than Loblaw. From gas stations to auto parts, household, sports gear, and outdoor gear, Canadian Tire is the go-to retailer. When inflation increases, many Canadians put off buying a new car, increasing sales for Canadian Tire. But the stock to buy is its real estate arm, CT REIT (TSX: CRT.UN). The REIT enjoys rental income from Canadian Tire stores and rent escalations after store development and intensification.

CT REIT’s 5.3% yield is safe as its distribution payout ratio has reduced to 72.7%. It means the REIT is only paying 72.7% of its adjusted funds from operations (rent income after deducting operating expenses, maintenance, and finance costs). You can be assured of receiving a monthly payout even when interest rates rise, as CT REIT has maintained lower leverage.

As long as Canadian Tire keeps paying rent and opening new stores, CT REIT will pay distributions.

Shopify stock

Another stock Canadians can consider buying asap is Shopify (TSX: SHOP). The stock has dipped 10% this month as the US midterm election shook AI stocks. Unlike other AI stocks with high leverage and capital expenditure, Shopify is using AI to support growth. It has no debt on its balance sheet, and AI has helped accelerate its revenue growth to 32% in the third quarter. Now is the time to buy the stock ahead of the Black Friday sale.

A 20–30% stock price rally is likely before the start of February 2027 on account of holiday season shopping. New investors note that Shopify is a seasonal stock. You can make the most of it by selling the stock by February, as a seasonal dip of 40–50% could come in March. So if you buy the stock at $210 now, consider selling when it crosses $250–$255, and buy it again in March, when the stock falls below $200.