Many favourable factors, including easing inflation and declining interest rates, fueled a strong rally in Canadian stocks in 2024. As we head into 2025, this strong momentum has created plenty of opportunities for investors to benefit from the bullish market sentiment.
Whether you’re seeking growth, stable income, or a mix of both, the Toronto Stock Exchange offers a wide range of high-quality stocks to choose from. With $2,000 to invest, now could be a great time to choose the right stock with strong fundamentals to help you maximize your returns. In this article, I’ll highlight two such attractive Canadian stocks you can buy right now with $2,000 and hold for years to come.
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MDA stock
After rallying by roughly 150% in 2024, MDA Space (TSX:MDA) stock currently trades at $29 per share with a market cap of around $3.5 billion. If you don’t know it already, this Toronto-based global space technology company mainly generates its revenue by providing satellite imagery, building robotic systems, and designing advanced satellites and components.
The ongoing strength in MDA’s financial growth trends further strengthens its investment appeal for growth investors. In the third quarter of 2024, the company’s total revenue rose 38% YoY (year over year) to $282.4 million, with its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbing by nearly 30% to $55.5 million. This top line and profitability growth was mainly driven by the company’s advancements across its core business segments, especially in its Satellite Systems and Robotics & Space Operations.
In the latest quarter, MDA’s Satellite Systems division saw a remarkable 77.5% YoY jump in revenue, supported by new programs. Similarly, its Robotics segment achieved strong growth with progress on the Canadarm3 program, which is considered a flagship project for the company. Moreover, MDA’s solid backlog of $4.6 billion, which climbed by 49% YoY last quarter, gives clear revenue visibility and highlights its ability to secure significant long-term contracts.
TD Bank stock
Unlike a growth stock like MDA Space, Toronto-Dominion Bank (TSX:TD) is a stable large-cap stock that you can buy now with $2,000 and hold for the next decade to generate regular income. After slipping by over 10% in 2024, TD stock currently trades at $75.27 per share with a market cap of about $131 billion. At this market price, it offers an impressive 5.6% annualized dividend yield.
The recent decline in TD Bank stock could mainly be attributed to the heavy penalty it had to pay to settle issues surrounding anti-money laundering compliance in the United States. However, the Canadian lender has recently taken many steps to address these issues by improving oversight, investing in its compliance infrastructure, and implementing robust anti-money laundering protocols.
Despite this temporary setback, the long-term growth outlook for TD’s core operations remains strong as its Canadian personal and commercial banking segment continues to deliver solid results, with record revenues in the latest quarter, fueled by loan and deposit growth and margin expansion.
In addition to its strong balance sheet, TD Bank’s diversified revenue streams and focus on expanding its digital services have brightened its growth outlook, making it an attractive long-term buy on the dip, in my opinion.
