BEGINNING INVESTORS: 3 TSX STOCKS I’D BUY WITH $500 RIGHT NOW
For beginner investors who are just starting out, the TSX stocks that you choose to buy first can help set the stage for years of investing success.
So, the key for investors is to find high-quality stocks that you can own for years to come but also ensure that the companies you invest in are easy to understand and follow.
When you buy stocks with complicated businesses that are difficult to understand, it can be difficult to comprehend how they are performing and assess their potential going forward.
So, if youâre a new investor with savings youâre looking to put to work, here are three of the top TSX stocks I would buy with $500 right now.
A simple way to begin investing in real estate
Investing in real estate is one of the most popular investments and a dream of many Canadians.
However, while buying a rental property can require significant capital upfront for a down payment and a lot of your time and focus on finding renters and maintaining your property, buying a residential real estate investment trust (REIT) like Canadian Apartment Properties REIT (TSX:CAR.UN) can be a much better investment.
Canadian Apartment Properties REIT (CAPREIT) owns a massive portfolio of residential real estate properties all across Canada, offering many benefits to investors, especially new investors.
For example, one of the main reasons to buy the TSX real estate stock is its sheer size, diversification, and professional management team.
With properties all over the country, diversification helps reduce risk considerably. The stock routinely keeps its occupancy rate above 90%, reducing the headaches of trying to find renters if you were to buy a single rental property.
Furthermore, with a professional management team running the REIT, not only do you never have to worry about taking care of any problems or maintenance issues on a rental property, but the management team is also consistently looking at new properties to add to the portfolio and expand CAPREITâs operations.
Therefore, if youâre interested in the real estate sector due to its defensive nature as well as its long-term growth potential, CAPREIT is one of the top TSX stocks for beginner investors to buy now.
A top defensive growth stock on the TSX to buy right now
Another consideration for new investors is to buy TSX stocks you can have confidence in owning for the long haul, so you donât have to worry about selling off these businesses even if thereâs a slight pullback in the market.
Thatâs why Brookfield Infrastructure Partners (TSX:BIP.UN) is one of the top Canadian stocks for new investors.
Brookfield owns a portfolio of essential assets worldwide, such as utilities, ports, railroads, telecom towers, and much more. These essential assets, plus Brookfieldâs significant geographical diversification, make it highly defensive and, therefore, highly reliable even in times of economic turmoil.
Plus, the company consistently assesses markets around the world to find new, undervalued opportunities to invest in and expand its portfolio.
It also aims to increase its dividend by 5-9% annually over the long haul and today offers a dividend yield of more than 5.1%.
One of the best-known Canadian retailers trading undervalued
Finally, another top TSX stock for beginner investors to buy now is Canadian Tire (TSX:CTC.A), the massive, well-known retailer thatâs been trading cheaply in recent months.
Canadian Tire also has a tonne of diversification, owning several different retail banners and even its own financial services business.
Furthermore, with one of the largest loyalty programs in the country and a history of leveraging data analytics to drive more sales, Canadian Tire has years of growth potential ahead of it, making it one of the best retail stocks on the TSX to buy now.
Plus, with Canadian Tire trading undervalued today, at a forward price-to-earnings (P/E) ratio of 10.5 times, and offering a dividend yield of 4.9%, now is the perfect time to consider taking a position.
For comparison, its 10-year average forward P/E ratio is 12.6 times, and its average yield over the last decade is just 2.8%. So, while it trades this cheaply, itâs certainly one of the top TSX stocks to consider buying today.
The post Beginning Investors: 3 TSX Stocks Iâd Buy With $500 Right Now appeared first on The Motley Fool Canada.
Should you invest $1,000 in Brookfield Infrastructure Partners right now?
Before you buy stock in Brookfield Infrastructure Partners, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now⦠and Brookfield Infrastructure Partners wasnât one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the âeBay of Latin Americaâ at the time of our recommendation, youâd have $17,295.89!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month â one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 28 percentage points since 2013*.
See the 10 stocks * Returns as of 7/23/24
More reading
- Canadian Tire is Paying $7 per Share in Dividends â Time to Buy the Stock?
- Is It Time to Buy the TSX’s 3 Worst-Performing Stocks?
- New to Investing? 5 Stocks That Could Jump-Start Your Wealth-Building
- 3 Reasons to Buy CAPREIT Stock Like There’s No Tomorrow
- The 5.11% Dividend Stock Set to Dominate the TSX
Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
2024-07-27T01:48:30Z dg43tfdfdgfd