Don't Miss AI's Third Wave
$10,000 is a great amount to start building a Canadian stock investment portfolio. Splitting the portfolio between four positions provides a good mix of diversification and commission minimization. If you are wondering what to invest in, this mini portfolio provides a good mix of growth, income, and value.
A top Canadian energy stock
It is nice to hold some income-producing stocks in your portfolio. When the market inevitably dips, you can still collect a nice cash return. Canadian Natural Resources (TSX:CNQ) is an excellent source of income.
Firstly, this Canadian stock has a top-class executive team with a highly aligned management team. Secondly, the company has a track record of efficient operations and strong capital allocation.
Lastly, the company has a strong balance sheet and substantial energy reserves that could last for decades. It now plans to distribute all its spare cash to shareholders via dividends and share buybacks
It yields 4% today. The company has grown its dividend by over 20% for more than two decades. This trend could continue if investors remain patient.
A transport business with outsized growth
Another Canadian industrial stock with a great record of returns is TFI International (TSX:TFII). Like CNQ, TFI may not be the most exciting business. It has one of Canada’s largest trucking and logistics solutions businesses. Likewise, it has become a substantial transport player in the United States.
The key with TFI has been its excellent operating ability and wise capital allocation. TFI has acquired over 90 companies in the past 10 years. It is dialled in on removing costs and focusing on only profitable operations.
TFI has an excellent chief executive officer who happens to be a major shareholder. The company is focused on unlocking value in 2024. It has several catalysts to do so. Its valuation remains attractive despite its epic 385% stock return in the past five years.
A global consulting leader
WSP Global (TSX:WSP) is another Canadian industrial stock for beginners. It is a global leading provider of engineering, design, project management, and consulting services.
WSP has grown by acquiring smaller firms into its fold. It has made nearly 200 acquisitions over the past few decades. By this, it has expanded into several growth platforms.
Its most recent move was into earth and environment. That also happens to be a segment that generates very strong margins. There continue to be plenty of adjacent verticals it can acquire.
In 2023, the company saw margins drastically expand while also growing revenues by +20%. The company could do even better in 2024, so there could be some upside from here.
A top Canadian financial stock
goeasy (TSX:GSY) is the one Canadian stock pick here that is not an industrial. It is the largest provider of non-prime consumer loans in Canada. It operates over 400 easyfinancial locations across the country.
With a strong brand, national scale, and growing demand, goeasy has considerable operating leverage. The Canadian economy is moderating. Most major banks have tightened their lending policies. As a result, more consumers are flooding towards goeasy for their lending needs.
goeasy grew earnings per share by 32% last year. It has done a great job of meeting or exceeding market expectations consistently. This stock yields 2.76% today. Despite its strong growth, it still only trades with a price-to-earnings ratio of 12 right now.
