Canadian Pacific Railway (CP)

You know the phrase “steady as a rail”? This certainly applies to railway stocks, and definitely in Canada. Yet if you’re a new investor wanting strong growth as well as stability, Canadian Pacific Railway is an option.

After a few years of back and forth with the United States Surface Transportation Board, CP finally received approval to purchase and merge with Kansas City Southern Railway. The merger will add new revenue streams for the company.

That’s why shares have done alright in the last year, up 11%, but on par with where it was at the beginning of 2023. New investors should note that this company isn’t known to just jump over night. Instead, it’s a long haul hold.

Look back and you’ll see why. Shares of CP stock have climbed a whopping 400% in the last decade. And while the dividend was cut to fund the recent acquisition, it could come back up once debts are paid. Which is why it’s an option for new investors wanting long-term growth.

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Waste Connections (WCN)

Another choice for new investors is Waste Connections, and it’s pretty obvious here what the company does. Even so, this waste collector is spread across the United States and Canada, and is the third largest waste management company in North America.

What’s more, investing in Waste Connections stock actually gives you exposure to the United States. This can be beneficial during a recession, as the U.S. tends to recover faster from downturns than Canada. For Waste Connections, only about 14% of its revenue is generated from Canadian operations, with the rest from the U.S.

Even with all this focus on going green and clean, waste will still be a major part of the future. Especially as we surpass a population of eight billion people in the world, with Canada’s population up 13% in the last 20 years alone.

So it’s no wonder then that Waste Connections stock continues to do well. Shares are up 11% in the last year, and 8% since the beginning of 2023. It offers a nice little 0.72% dividend yield as well. If you make a move, make sure to use a trading platform with low fees.

Royal Bank of Canada (RY)

Finally, it might not seem like it, but buying a Big Six Bank is actually one of the best things new investors can do during an economic downturn. Canadian banks aren’t like their peers in the U.S. There isn’t as much competition, so there is a lot more money saved and set aside for loan losses.

Royal Bank of Canada continues to be the largest of the banks by assets and market capitalization at $184.84 billion. And it certainly has stable cash flow, with the company’s diversified financial services providing lucrative revenue streams.

These include wealth and commercial management, insurance, corporate banking and capital markets. While it has exposure to other countries and emerging markets, it’s these first points that provide it with long-term revenue that the company has enjoyed for years.

Now here is where new investors can certainly get a deal. Royal Bank shares are down 4% so far this year. This could certainly drop further once we enter recession territory, so if you want a dip you may want to put it on your watchlist.

But if not, it’s still a valuable stock. Shares may be down now, but are up 124% in the last decade. You can also bring in a 4% dividend yield today. And as with the other banks, Royal Bank stock has proven its worth after recessions, climbing back to pre-fall prices within a year of reaching 52-week lows.

Go your own way

There you have it, three TSX stocks to consider if you are just starting your investing journey.

It can be intimidating to start investing on your own. Risk-averse investors might want to stick with stable, inflation-proof assets. Going with a robo-advisor can also be a stress-free way to start investing.

Those looking to take control of their investments should certainly explore online trading platforms. The best sites offer resources and tools to help investors make informed decisions as they build and manage their investment portfolios.

Or, if you're looking for something really different, try investing in shares of the art world's greatest masterpieces by artists like Banksy, Monet and Warhol.

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About the Author

Amy Legate-Wolfe

Amy Legate-Wolfe

Freelance Contributor

Amy Legate-Wolfe is an investment junkie, who aims to help others get hooked by providing well-researched advice. After receiving a masters in journalism from Western University, Amy worked for Huff Post and CTVNews.ca, while freelancing for organizations such as the CBC, Motley Fool Canada and Financial Post. Amy Legate-Wolfe is an experienced personal finance writer and freelance contributor working with Money.ca.

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