Stepping into the Canadian stock market for the first time can feel overwhelming. With so many companies trading on the Toronto Stock Exchange (TSX), knowing where to begin â and what to avoid â matters far more than trying to pick the next hot stock.
January, often seen as a fresh-start month for finances, is an ideal time for new investors to build good habits and lay a strong foundation. The Canadian market has been rewarding patient investors. Using iShares S&P/TSX 60 Index ETF as a benchmark, the market has delivered annualized returns of nearly 16% over the past five years and roughly 29% over the past year.
While those numbers are impressive, new investors should resist chasing recent performance and instead focus on durability, discipline, and long-term thinking.
Build the right foundation before you invest
Before purchasing your first stock, itâs critical to get your financial house in order. Most financial experts recommend setting aside an emergency fund covering three to six months of living expenses. This cash buffer protects you from unexpected events â job loss, medical expenses, or urgent repairs â and prevents you from being forced to sell investments at the wrong time.
Equally important is adopting a suitable time horizon. Stocks are best suited for money you wonât need for at least three to five years. Markets will fluctuate, and occasional corrections are inevitable. By investing with a longer horizon, you give your portfolio time to recover and compound.
Defensive companies â those with predictable earnings, steady cash flows, and reasonable valuationsâare often an excellent place for beginners to start.
Why dividend stocks make sense for beginners
One of the most effective ways new investors can start strong is by focusing on solid dividend stocks. These companies pay you to stay invested, providing income no matter which way share prices go. Dividends can also be reinvested, allowing you to buy more shares during market downturns and accelerate long-term growth.
Dividend-paying companies tend to be more mature and financially disciplined, which can reduce risk for first-time investors. With that in mind, here are two Canadian dividend stocks that new investors may want to consider this January.
Two Canadian dividend stocks to consider in January
Pembina Pipeline (TSX:PPL) offers a textbook example of a defensive dividend stock. As an energy infrastructure company, its business is largely supported by long-term, take-or-pay contracts, meaning its cash flows are relatively insulated from swings in oil and gas prices. This stability allows Pembina to generate reliable cash flow and support a consistent dividend.
The stock has pulled back about 12% from its 52-week high and currently offers a dividend yield of nearly 5.6% at around $50.87 per share.Â
Analysts see the stock trading at roughly a 13% discount to consensus price targets, implying about 15% near-term upside. For new investors seeking income and steady long-term appreciation, Pembina is a defensive starting point.
goeasy (TSX:GSY) sits on the opposite end of the risk spectrum. As a non-prime consumer lender, its earnings can be more cyclical and sensitive to economic conditions. The stock has fallen roughly 35% from its 52-week high, but that decline has created an interesting contrarian opportunity.
Currently trading about 30% below its historical valuation, goeasy offers a significant margin of safety. Itâs also a Canadian Dividend Knight, boasting a 10-year dividend-growth rate of approximately 30%.Â
At $136.87 per share at writing, the stock yields about 4.3%. For new investors with higher risk tolerance and a long-term mindset, goeasy is worth a closer look.
Investor takeaway
For new Canadian investors, starting strong in January means preparing, being patient, and focusing on solid dividend stocks. Build an emergency fund, invest with a multi-year horizon, and consider dividend-paying companies that offer income and stability or upside.
Stocks like Pembina Pipeline and goeasy highlight how defensive and higher-risk options can both play a role â depending on your goals and risk tolerance â in a well-thought-out first portfolio.
The post Your First Canadian Stocks: How New Investors Can Start Strong in January appeared first on The Motley Fool Canada.
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* Returns as of January 5th, 2026
More reading
- 1 Canadian Dividend Stock Down 37% to Buy and Hold Forever
- Your 2026 TFSA Game Plan: How to Turn the New Contribution Room Into Monthly Cash
- Your 2026 Investing Playbook: Value Plus Growth in 2 Easy Stocks
- Retirement Planning: How to Generate $3,000 in Monthly Income
- New Year, New Income: How to Aim for $300 a Month in Tax-Free Dividends
Fool contributor Kay Ng has positions in goeasy and Pembina Pipeline. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.
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