The Best Stocks to Invest $1,000 in Right Now

The investment landscape in 2026 was violently reshaped by a renewed military conflict in the Middle East. Surging oil prices and the threat of global supply disruption triggered market sell-offs in recent days. Nonetheless, the downturn opens an entry window, especially for investors looking for the best stocks to invest $1,000 in right now.

Tamarack Valley Energy (TSX:TVE), Diversified Royalty (TSX:DIV), and Air Canada (TSX:AC) are compelling opportunities. The first two continues to beat the market amid the extreme volatility, while the third display recovering fundamentals.

Low-cost structure

Tamarack Valley is coming from a transformative year, highlighted by operational efficiency and significant profitability growth in Q4 2025. The $4.9 billion oil and gas company operates in the Western Canadian Sedimentary Basin. It benefits from repeatable, predictable and economic long-life resource plays.

At $10.32 per share, TVE’s year-to-date gain is 29.3%. In addition, investors partake in the modest 1.66% dividend. In the three months ending December 31, 2025, net income climbed 870% to $61.9 million. For the year, free cash flow (FCF) reached $390 million.

Given its low-cost structure and low break-even oil price (US$40 per barrel), expect Tamarack to keep generating sustainable total returns for shareholders. The current WTI price per barrel is US$89.

Dividend titan

Dividend Royalty is a dividend titan paying monthly cash dividends. At $4.05 per share (+10.2% year to date), income investors feast on the juicy 6.72% dividend. You’ll earn $5.60 per month on a $1,000 investment from this pure-play income stock.

The $710.3 million corporation collects royalties or a percentage of gross sales from a diverse group of royalty partners. Based on its latest earnings report (first three months of 2025), net income rose 13.6% year over year to $25.7 million. Its CEO, Sean Morrison, said DIV’s portfolio continues to deliver strong organic growth in a challenging economic environment.

Mr. Lube + Tires is the largest contributor to royalty income. BarBurrito, Mr. Mikes Steakhouse, and Cheba Hut represent the food and beverage sector. For services, the partners are Nurse Next Door, Oxford Learning, and Stratus Building Solutions. Bank of Montreal supports the Air Miles loyalty program.

Strong market position

A potential energy crisis could impact the transportation sector, including airlines. Still, some market analysts see Air Canada as a good prospect. The country’s flagship carrier enjoys a dominant market position and, notably, strong revenue recovery. The $5.2 billion company reported record revenues and strong earnings in Q4 2025.

In the three months ending December 2025, operating revenues topped $5.77 billion, while net income reached $296 million compared to the $644 million net loss in Q4 2024. Its President and CEO, Michael Rousseau, Air Canada entered the year with a strong position.

At $17.78 per share, AC is down 7.83%. However, based on analysts’ 12-month average price target of $25.34, the upside potential is +42.5%.    

Invest $1,000 wisely

You don’t need substantial capital to invest in Tamarack Valley, Diversified Royalty, or Air Canada. Moreover, you can allocate $1,000 across the three stocks to have a balance of income and growth.

The post The Best Stocks to Invest $1,000 in Right Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in Air Canada right now?

Before you buy stock in Air Canada, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Air Canada wasn’t 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 “eBay of Latin America” at the time of our recommendation, you’d have $20,155.76!*

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* Returns as of February 17th, 2026

More reading

• 2 High-Yield Dividend Stocks You Can Buy and Hold for a Decade
• TSX Today: What to Watch for in Stocks on Tuesday, March 3
• This Canadian Energy Play Just Moved Onto My Buy List
• Here’s Exactly How $15,000 in a TFSA Could Grow Into $45,000

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Air Canada. The Motley Fool has a disclosure policy.