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3 Dead-Easy Canadian Stocks to Buy With $1,000 Right Now 

Alex Smith

Alex Smith

1 month ago

5 min read 👁 7 views
3 Dead-Easy Canadian Stocks to Buy With $1,000 Right Now 

The biggest challenge with investing is timing. When you have money, the stock you have been eyeing has already rallied. And when you have an investment opportunity, you don’t have money. The outcome is that you keep delaying investing and even miss out on the average returns the market can provide. Instead of procrastinating, take that $1,000 lying in your account and invest it in some dead-easy stocks. At least that will get your money to work to earn market returns.

Three dead-easy Canadian stocks to buy right now

Canadian National Railway

Canadian National Railway (TSX:CNR) stock often gets sidelined because of its low dividend yield. The stock is trading near its pandemic low, and still, the dividend yield is just 2.6%. However, the benefit of this stock is its regular dividend growth. Before the pandemic, its average annual dividend growth was 16%, but the growth rate slowed to 8% post-pandemic. The US tariff war further slowed the dividend growth to 5% in 2025. That explains the company’s share price dip.

However, the stock has the potential to grow dividends in any type of market and even give double-digit dividend growth during phases of economic growth. Its dividend increased 19% in 2022 when trade recovered from the pandemic.

You could consider buying this stock at the current dip, as the company’s next growth phase could come from a global supply chain shift. The Canadian government is looking to tap new export markets that would require new rail infrastructure connecting to ports. That could drive a cyclical rally in share price and also dividend growth.

Topicus.com stock

Topicus.com (TSXV:TOI) stock is also trading near its 52-week low, as its parent Constellation Software announced a crucial management change. Investors have adopted a wait-and-watch approach, and some have been selling their stake as the management transition is executed.

The current share price dip is a buying opportunity, as there has been no change in the working of Topicus.com. It continues to buy vertical-specific software in Europe and is expanding its coverage to other geographies. The company reported a loss in the third quarter as it impaired several acquired assets. However, its free cash flow continued to grow. The stock could see an uptick in the first quarter when most of its cash flow is skewed because of contract renewal dates.

The software conglomerate has higher debt on its balance sheet, but it is manageable. You can hold this stock for four to five years to benefit from a recovery rally when the market revives.

Market ETF

The above two stocks carry company-specific risk and may not always give market-linked returns. However, buying them at their dip can help you beat the market in the short term. But if you want to avoid company-specific risk, you can make the market your guide and invest in the BMO S&P/TSX 60 Index Series Units ETF (TSX:ZIU). This ETF tracks the TSX 60 Index and strives to give similar returns as the index for a 0.15% annual management expense. The ETF has surged 19% in a year and 60% in five years.

That is the opportunity cost lost from delaying investments. The benefit of market ETFs is that you do not need to choose which stock to buy. You automatically get exposure to performing large-cap stocks across sectors. No matter the company-specific risk, the ETF will rebalance the portfolio by removing non-performers with performers, giving you the advantage of market movement.   

The post 3 Dead-Easy Canadian Stocks to Buy With $1,000 Right Now  appeared first on The Motley Fool Canada.

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More reading

The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Canadian National Railway and Constellation Software. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

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