The Top Stocks to Buy With $2,500 Right Now

Do you have some cash ready to put to work? Here are three top Canadian stocks to consider.

Nicholas Dobroruka

Nik has been writing for The Motley Fool Canada since 2020. After studying marketing at University in his hometown of Montréal, Nik decided to pack up and move west to Vancouver. By day, Nik is a digital media ninja, specializing in Programmatic advertising. By night, you can find him either Mountain biking in Vancouver’s famous North Shore trails or writing for TMF Canada. Tech, digital payments, and renewable energy are three areas that Nik enjoys following and writing about.

Published October 3, 2023 9:30 am EDT

| More on: BEP.UNDSGSLF

The end of September couldn’t come fast enough for Canadian investors. The S&P/TSX Composite Index managed to drop nearly 5% in the second half of the month, putting the index at just about flat on the year.

While there is certainly no shortage of volatility in the market today, it could be a fantastic time to invest. The TSX is loaded with high-quality stocks trading at rare discounts.

top TSX stocks to buy — Source: Getty Images

Investing for the long haul

Those investing for the long term have the luxury of being able to patiently wait out volatility in the stock market. If you don’t plan on selling anytime soon, today’s tough market conditions can be viewed as a long-term opportunity, as opposed to a short-term loss.

With that in mind, I’ve reviewed three top TSX stocks that are the types of companies you can feel confident holding for decades to come. If you’ve got some cash to spare, I highly suggest adding these three picks to your watch list.

Brookfield Renewable Partners

The renewable energy space as a whole should be on all long-term investor’s radars today. The sector has taken a beating since early 2021, which explains why many renewable energy leaders are trading at significant discounts right now.

At a market cap just shy of $20 billion, Brookfield Renewable Partners (TSX:BEP.UN) is a global leader in the space. With the company’s broad portfolio and international presence, it’s the perfect stock to gain instant exposure to the growing sector.

Shares are currently down more than 40% from all-time highs. Still, the energy stock is up close to 50% over the past five years, easily outpacing the returns of the broader market. And that’s not even including the company’s dividend, which is yielding above 5% with today’s discounted price.

Descartes Systems

Descartes Systems (TSX:DSG) has fared far better than many of its peers over the last couple of years. Many tech stocks have been on the decline since late 2021, but that list of companies does not include Descartes Systems.

Shares of the tech stock are positive on the year and trading just 10% below all-time highs set in late 2021. Over the past five years, shares are up a market-crushing 145%.

Investors looking to add a little extra growth to their portfolios should consider this resilient tech company.

Sun Life

Insurance is far from the most exciting place to be investing. That being said, there’s absolutely nothing wrong with being boring when it comes to investing. And that’s especially true if you plan on owning high-growth companies like Descartes Systems.

In addition to passive income, what makes Sun Life (TSX:SLF) a solid long-term hold is the dependability that the company can provide a portfolio. It likely won’t be the fastest-growing company you own. But through thick and thin, it’s a stock you can count on.

Shares are about flat on the year and trading just below all-time highs. And at today’s stock price, the company is yielding 4.5%.

For growth investors who are looking to dial back some risk in their portfolios, Sun Life is an excellent option.