My Top 5 Canadian Stock Picks for New Investors

2025-10-07 17:00:00 ET

Today’s market landscape has plenty of attractive choices across various industries for new investors. First-timers can consider five Canadian stocks that have the potential to deliver higher returns through price appreciation or dividend income.

Financial stock

Big Bank stocks are staples in an investment portfolio, although their share prices are beyond reach if you have limited capital. Atrium Mortgage Investment Corporation ( TSX:AI ) is a cheaper alternative. The $554.4 million non-bank lender extends financing for commercial and residential real estate, and has been in business for 24 years.

MICs, such as Atrium, don’t pay income tax but are required to distribute 100% of net income to shareholders. If you invest today, you can partake in the mouth-watering 8% dividend yield. The share price is $11.64, while the payout frequency is monthly.

Restaurant

A top pick in the restaurant industry is Pizza Pizza Royalty ( TSX:PZA ). The $518.3 million company franchises and operates quick-service restaurants. It owns the rights to Pizza Pizza and Pizza 73, earning royalty income from the restaurants in the royalty pool.

At $15.54 per share, PZA is up 25.3% year-to-date and pays a generous 6% dividend. The consistent profitability year after year is due to the business model and brand power of Pizza Pizza and Pizza 73. It also helps sustain the monthly dividend payments.

Gen AI

The tech sector accounts for only 11% of the entire TSX, yet it has a significant influence on investors. A relatively inexpensive option right now is Coveo Solutions ( TSX:CVO ). You gain exposure to a high-growth sector, particularly generative artificial intelligence (AI). At $8.12 per share, the market-beating year-to-date gain is 27.3%. Market analysts’ 12-month average price target is $11.75 (+44.7% upside).

Its lead platform, Coveo-AI Relevance, helps customers provide a relevant experience in the digital space. The cloud service centralizes access to websites, knowledge bases, and catalogs, improving the discoverability of data and securing it. Louis Têtu, Executive Chairman of Coveo, believes the company is positioned to further accelerate its growth and leadership position.

Cure sector

NorthWest Healthcare Properties ( TSX:NWH.UN ) is the only Canadian real estate investment trust (REIT) in the cure sector. This $1.3 billion REIT owns and manages medical office buildings (57%) as well as hospitals and healthcare facilities (41%). The remaining tenants (2%) are in the education, life sciences, and research sectors.

The average occupancy rate of the 168 properties in eight countries is 96.6%, with a weighted average lease expiry (WALE) of 13.5 years. NWH-UN trades at $5.19 per share (+23.3% year-to-date) and pays cash monthly on a hefty 6.9% dividend.

Clean energy

Northland Power ( TSX:NPI ) is a long-term hold due to its long growth runway in the clean energy sector. The $6.4 billion independent power producer owns and operates power generation facilities from renewable sources. This non-traditional utility company has assets in North America, Europe, and Asia.

Current NPI investors enjoy a 42.5% year-to-date gain on top of the 4.9% dividend. The share price, however, is more than $20 or $24.39.

Upward momentum

The TSX has performed extremely well in 2025, if not overdelivered, evidenced by multiple all-time closing highs. My top five Canadian stocks for new investors could rise further as the broader market breaks more records until year-end.

The post My Top 5 Canadian Stock Picks for New Investors appeared first on The Motley Fool Canada .

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Coveo Solutions and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy .

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