Adam Othman
·3 min read
Written by Adam Othman at The Motley Fool Canada
As the S&P/TSX Composite Indexcontinues hovering near its new all-time high, many might argue that the much-awaited bull marketrun for the Canadian stock market has arrived. As of this writing, the Canadian benchmark index is down by 0.72% from its recently set new high.
While many might think that it is a good time to sell and take their returns, now might be a great time to consider adding a few holdings to your self-directed portfolio.
Many high-quality stocks are trading at all-time highs, but I would argue that a few have much more to offer. If you have a well-balanced portfolio and seek substantial long-term wealth growth amid the positive market momentum, I urge you to consider adding two TSX stocks to your self-directed portfolio: Topicus (TSXV:TOI) and goeasy (TSX:GSY).
Topicus
Topicus stock is a tech-sector stock trading on the TSXV. The $9.87 billion market capitalization stock is a spinoff of Constellation Software (TSX:CSU), doing pretty much the same as its parent company.
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Topicus is in the business of acquiring profitable software companies and using its expertise to prop them up and tune them for added success. In turn, the success of the companies it acquires under its banner drives more growth for Topicus, allowing it to continue acquiring more businesses.
Constellation Software has already proven its worth over the years, becoming a rare tech stock that also pays regular dividends.
Topicus spun off from Constellation, focusing on operating in the European market. Offering more diversification and a longer runway for growth, Topicus can be an excellent holding to consider. As of this writing, Topicus stock trades for $119.13 per share.
goeasy
goeasy stock is a $2.69 billion market capitalization non-prime lending company. Headquartered in Mississauga, the alternative financial services company had humble beginnings as a company that offered financing for home appliances.
Over the years, it has grown its offerings, providing alternative lending solutions for pretty much everything. When anyone needs a loan that traditional lenders will not approve, they seek businesses like goeasy.
Despite the high-interest-rate environment marred by red-hot inflation, goeasy has seen a significant surge in loan originations. Analysts anticipate that the trend will continue. As of this writing, GSY stock trades for $161.74 per share, almost 10% below its latest all-time high of $180.10 from last month. At current levels, GSY stock also pays its shareholders their dividends at a 2.89% dividend yield.
With at least 10% upside in the near term and plenty more growth due to a solid demand for its services, it can be an excellent long-term holding to capture wealth growth.
We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if goeasy made the list!
Foolish takeaway
Remember, investing in growth stocksentails a higher degree of capital risk than with many others. TOI stock and GSY stock operate as stable businesses and continue to prove their worth time and time again.
While not immune to the impact of macroeconomic jitters, the solid underlying businesses can make TOI stock and GSY stock excellent investments to consider adding to your self-directed portfolio.
The post 2 Stocks I’m Loading Up on in 2024 appeared first on The Motley Fool Canada.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.
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