The Top Canadian Stocks for Beginners in February 2025
Key takeaways
Stable and Reliable Choices for Beginners – These stocks are from industries with strong market positions, making them lower-risk options for new investors looking for steady growth and dividends.
Canada’s Stock Market is Built on Dividends – Many of the best beginner-friendly stocks, like banks, utilities, and telecoms, offer consistent and growing dividends, providing reliable income alongside capital appreciation.
Economic and Sector Trends Matter – Factors like interest rates, regulatory changes, and technological advancements impact these companies, making it important for investors to stay informed about broader market conditions.
3 stocks I like better than the ones on this list.Sure, it’s possible to have a secure retirement if you avoid the stock market. It just isn’t very likely. That’s why every investor should own Canadian stocks.
The stats don’t lie. Overall, Canadian households who own stocks are wealthier than those who don’t. Good things happen for investors who funnel excess cash into ownership stakes in Canada’s finest companies.
Choosing a path with investing
The hard part, as always, is the execution. Especially for folks just getting started in the stock market. How exactly do you buy a stock, anyway? Which broker should you use? How do you choose which stocks are best? Is there an overarching strategy to it all? It’s all so daunting, especially for those who have no idea where to start.
Don’t sweat it. It’s easier than you think.
There are two ways to invest in stocks
You can take the direct path and own stocks directly or the indirect path and own funds. These funds then take positions in stocks, bonds, and other financial interests.
Each form has certain advantages and drawbacks. Let’s start with indirect investments, which may be easier for the beginning investor. Rather than picking and choosing individual stocks, passive investors put their money in mutual funds, and professional portfolio managers take care of the rest.
But there are drawbacks to this strategy. These funds charge fees, and it’s difficult for rookie investors to know what’s reasonable and what isn’t. They’re also typically sold by investment advisors, who get a cut of the fees.
And even though intelligent people manage these funds, the high costs generally mean they underperform their benchmarks over time.
Lower fee versions of these funds exist that trade directly on the stock exchange called exchange-traded funds (or ETFs). Investors save on costs, but in exchange, they don’t get the level of service provided by investment advisors.
Choosing your own stocks is good because you have total control over your account. But it can also be daunting. Choosing the best stocks can be difficult, especially for someone just starting out.
But it’s easily achievable. Some 60% of Canadian investors recently reported they’re self-directed investors. If they can do it, why can’t you?
With that said, lets dig into some of the best Canadian stocks for beginners right now.
What are the best Canadian stocks for beginners right now?
Canada’s largest bank
Royal Bank of Canada (TSE:RY)

Royal Bank of Canada (RBC) is the biggest bank in Canada by market capitalization, serving over 17 million clients worldwide. It operates across multiple segments, including personal and commercial banking, wealth management, and capital markets. RBC is known for its strong balance sheet, consistent dividend growth, and leadership in digital banking.
P/E: 14.8
5 Yr Revenue Growth: 4.2%
5 Yr Earnings Growth: 4.7%
5 Yr Dividend Growth: 6.1%
Yield: 3.4%
A leading Canadian telecom provider
TELUS (TSE:T)

TELUS is one of Canada’s top telecom companies, offering mobile, internet, and TV services nationwide. It stands out for its customer service and investment in fiber-optic technology. The company also has a fast-growing health-tech business, TELUS Health, providing digital healthcare solutions.
P/E: 33.5
5 Yr Revenue Growth: 7.3%
5 Yr Earnings Growth: -15.4%
5 Yr Dividend Growth: 6.7%
Yield: 7.4%
Global convenience store giant
Alimentation Couche-Tard (TSE:ATD)

Couche-Tard is a worldwide leader in convenience stores, operating brands like Circle K in North America, Europe, and Asia. The company generates revenue from fuel sales and in-store purchases, making it a defensive, recession-resistant business.
P/E: 20.9
5 Yr Revenue Growth: 3.7%
5 Yr Earnings Growth: 12.3%
5 Yr Dividend Growth: 24.2%
Yield: 0.9%
Canada’s largest railway company
Canadian National Railway (TSE:CNR)

CNR operates an extensive rail network that transports goods across North America. As a key player in the supply chain, the company benefits from long-term demand for freight transport.
P/E: 21.7
5 Yr Revenue Growth: 2.7%
5 Yr Earnings Growth: 3.8%
5 Yr Dividend Growth: 9.5%
Yield: 2.2%
A stable utility giant
Fortis (TSE:FTS)

Fortis is one of Canada’s largest utility companies, providing electricity and gas to millions of customers. Its regulated business model ensures stable, predictable revenue.
P/E: 19.2
5 Yr Revenue Growth: 6.5%
5 Yr Earnings Growth: 3.7%
5 Yr Dividend Growth: 5.8%
Yield: 3.9%
Canada’s largest property and casualty insurer
Intact Financial (TSE:IFC)

Intact Financial provides home, auto, and business insurance across Canada. Its consistent underwriting discipline and smart acquisitions make it a leader in the industry.
P/E: 22.3
5 Yr Revenue Growth: 15.8%
5 Yr Earnings Growth: 7.9%
5 Yr Dividend Growth: 9.5%
Yield: 1.9%
The parent company of Tim Hortons, Burger King, and Popeyes
Restaurant Brands International (TSE:QSR)

RBI owns some of the world’s biggest fast-food brands, generating revenue through franchising. Its global presence and strong brand recognition make it a stable pick.
P/E: 15.4
5 Yr Revenue Growth: 5.6%
5 Yr Earnings Growth: 9.2%
5 Yr Dividend Growth: 4.1%
Yield: 3.8%
Related
Best Stocks to Buy for Your RRSP

How do you actually buy these stocks?
Self-directed investors do everything themselves, including choosing the stocks to buy and inputting orders into a trading platform. There’s no need to talk to a human; this is all done online.
Ultimately, you need a brokerage to do it.
Many investors struggle at this point since many online brokers tend to have very similar features. Choosing the best brokerage account isn’t that important. They’re mostly the same, anyway. Choose one that best matches your needs and go with it.
A few of our favourite online brokerage accounts include Qtrade, Questrade, and RBC Direct Investing. These accounts allow investors to purchase stocks easily while offering low trading fees and good customer service. You can also set up separate TFSA and RRSP accounts.
Wealthsimple Trade also offers commission-free trading, making it the cheapest discount brokerage in Canada.
The trading process itself is pretty straightforward, but there are a few things you’ll want to know
Like an auction, stocks have bid and ask prices. The bid price is the current price buyers are willing to pay. The asking price is the price sellers are willing to sell at. Most large stocks have a minimal spread between the bid and the asking price, but smaller names will have a more extensive spread.
When you purchase a stock, you can submit several kinds of orders. One is a market order, which purchases the stock without worrying about price. This is fine if there are a lot of buy and sell orders, but it’s a terrible idea for illiquid stocks.
If you’re buying a stock with a big spread between the bid and the ask prices, you’ll want to use a limit order. The limit price is set as the maximum you’re willing to pay. If the asking price doesn’t cooperate, the order will go unfilled.
There are also stop orders, which only become effective once a stock trades at or through a specific price. Once the price is reached, the stop order becomes a market order.
These are just a few points to get started with when learning how to buy stocks.
Some general tips on choosing stocks
One of the investment world’s dirty little secrets is that there’s an army of investment advisors, salespeople, and hedge fund managers who have a vested interest in convincing investors they can’t do it themselves. After all, they directly benefit when investors take the passive route.
Investing can be incredibly complicated, but it doesn’t need to be. Many do-it-yourself investors outperform professionals by sticking to the basics.
The first thing to remember is that an investment in a stock is an ownership stake in an underlying business. The current stock price can fluctuate wildly. Ultimately, the company’s health determines the stock’s overall success, which translates into capital gains.
You’ll want to focus on stocks that increase revenue, earnings, and dividends consistently.
It’s also essential for new investors to invest in things they understand. The beauty of the stock market is that there are thousands of stocks out there. Investors can easily discard the ones they don’t understand, and the supply is virtually limitless.
Many of the most successful investments of all time have been products and services you use every day.