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Top Canadian Stocks to Snap Up with a $4,000 Bonus

If you have $4,000 prepared for investment, it might seem insignificant in the stock market arena; however, selecting the appropriate firms could turn this starting fund into substantial long-term riches. It’s crucial to concentrate on enterprises with robust profits, confirmed expansion potential, and the capacity to distribute dividends under various economic scenarios. Here are three notable Canadian equities that fulfill these requirements:

Loblaw


Companies

(

TSX:L

),

Cenovus Energy

(

TSX:CVE

), and

Leon’s Furniture

(

TSX:LNF

). Each functions within a distinct industry, assisting you

diversify

Even with a small initial amount.

Loblaw

In Canadian homes, Loblaw stands as an essential presence. Being the nation’s premier grocery and pharmaceutical chain, it operates various labels such as Loblaws, No Frills, Shoppers Drug Mart, and Real Canadian Superstore. Such widespread brand familiarity coupled with its indispensable services acts as a natural safeguard for Loblaw during financial downturns.

Loblaw’s Q1 2025 financials reveal revenues totaling $13.6 billion, representing a 4.2% rise over the previous year. The company posted net earnings of $418 million, equivalent to $1.28 per diluted share, fueled primarily by robust performances in their food and pharmacy segments. Notably, Loblaw has boosted its quarterly dividend to $0.49 per share—an adjustment that marks the firm’s 13th yearly hike consecutively. This move underscores the organization’s optimistic outlook along with solid liquidity. Offering moderate yields coupled with steady increases in dividends, Loblaw positions itself as an entity focused on enduring reliability and sustained value accumulation rather than substantial distributions.

Cenovus

Next up is Cenovus Energy. Despite the volatility often associated with energy stocks, investing in Cenovus provides access to an industry anticipated to stay robust over many years, particularly since oil demand continues strong and worldwide supplies remain limited. During the first quarter of 2025, Cenovus reported net earnings totaling $859 million, equating to $0.47 per share—significantly surpassing forecasts. The company’s output surged to almost 819,000 barrels of oil equivalent daily, bolstered by enhanced processing capabilities at refineries across both Canada and the United States.

With its integration of upstream and downstream assets, Cenovus has greater control over its costs and margins. The Trans Mountain pipeline expansion also came online in 2024, increasing access to international markets and improving Canadian crude pricing. Cenovus currently pays a quarterly dividend of $0.18 per share, with plenty of room for growth as debt comes down and free cash flow expands. This is a name for investors who want

value

, an upside potential, and a decent dividend.

Leon’s

Completing this set is Leon’s Furniture. Despite receiving little attention, this Canadian stock has silently transformed into a reliable source of dividends. As the biggest furniture and appliance retailer in Canada, Leon’s owns well-known brands such as The Brick and Appliance Canada. In the fourth quarter of 2024, the company posted revenues of $598 million, along with a net income of $35 million, equivalent to $0.45 per share. These figures represent strong performance, particularly when taking into account the decline in consumer expenditure.

The appeal of Leon’s lies in its strong financial position, characterized by modest debt levels and a consistent history of profit generation. This Toronto-listed company further entices shareholders through its regular payment of a quarterly dividend amounting to $0.16 per share. Investors seeking both stable earnings and potential growth may find this leading furniture retailer an ideal fit. Additionally, Leon’s benefits from ongoing development in its online retail presence along with well-positioned property assets, which add unseen layers of worth often unappreciated by the market.

Foolish takeaway

Investing your $4,000 across these stocks might involve assigning roughly $1,333 to each Canadian equity. This approach ensures diversification among essential sectors like consumer goods, energy, and retail. Owning shares in Loblaw can provide stability. Investing in Cenovus may yield gains should oil prices stay high. Meanwhile, Leon’s will offer steady returns with moderate expansion potential. Most crucially, this mix establishes a solid base for future investments.

The post

The Best Canadian Shares to Purchase with a CAD$4,000 Bonus

appeared first on

The Motley Fool Canada

.

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Fool contributor

Amy Legate-Wolfe

does not own shares in any of the companies discussed. The Motley Fool suggests investing in Leon’s Furniture. The Motley Fool has a

disclosure policy

.