Three Top Canadian Stocks for New Investors in 2024

Three Top Canadian Stocks for New Investors in 2024

Investing isn’t just a luxury; it’s necessary for those aiming to grow their wealth and achieve financial independence. The secret sauce? Starting early to leverage the magic of compounding returns. The stock market presents a golden opportunity for novices to get their feet wet. Yet, caution is key. The ideal candidates for investment are companies with robust foundations and consistent cash flows, regardless of the whims of the market.

Top Picks for Rookies

Waste Connections: A Solid Foundation

Waste Connections (TSX:WCN) stands out for its essential services in waste management across the U.S. and Canada, operating with minimal competition due to its unique market positioning. Waste Connections has consistently performed well with a history of aggressive growth through acquisitions and organic expansion. Over the past decade, it’s boasted a staggering 550% return, translating to a 20.8% compound annual growth rate (CAGR).

Recently, it expanded its portfolio by acquiring 30 waste management facilities, signaling strong future prospects. The company’s forward-looking guidance for 2024, with a projected 13% rise in adjusted EBITDA, underscores its robust growth trajectory. For beginners looking for a reliable stock with solid growth potential, Waste Connections ticks all the boxes.

Dollarama: Retail at Its Best

Dollarama (TSX:DOL) revolutionizes the discount retail space, offering a wide array of consumer goods at unbeatable prices. Its success lies in exceptional sourcing, buying prowess, and logistical efficiency. This formula has allowed Dollarama to enjoy robust sales growth, independent of economic conditions. With an impressive track record of top-line and net income growth, the company has delivered a 635% return over the past decade, at a CAGR of 22.1%.

Dollarama’s ambitious plan to open 500 new stores in seven years, coupled with growth in its Latin American operations through Dollarcity, makes it a compelling choice for beginners. Despite its premium valuation, Dollarama’s foundational strengths and growth outlook make it a standout investment.

Fortis: Stability Meets Growth

Fortis (TSX:FTS) serves as a beacon of reliability, catering to 3.5 million customers’ electricity and natural gas needs. Its financial stability is backed by a portfolio focused on essential utility services, boasting an impressive 10.7% average annual shareholder return over two decades.

Notably, Fortis has a storied history of dividend growth, increasing payouts for 50 consecutive years, with a forward yield of 4.37%. Its strategic investment in low-risk assets forecasts a promising future, aiming for a 6.3% annual rate base growth. This positions Fortis as a lucrative option for investors seeking both stability and growth, underscored by an attractive valuation.

Wrapping Up

For those stepping into the investment world in 2024, these three Canadian stocks offer a blend of stability, growth potential, and resilience. While the journey of investing can be complex, starting with solid foundations like Waste Connections, Dollarama, and Fortis can pave the way to financial success.

Before jumping in, remember that every investment carries its own set of risks and opportunities. While Dollarama shines bright, it’s crucial to diversify and explore other promising avenues. The investing landscape is vast, and with the right approach, the potential for wealth creation is immense.