In the event you handed me $8,900 to speculate on the TSX at the moment, I’d need a mixture of progress and resilience. The market is unsure, inflation stays sticky, and rate of interest cuts haven’t totally arrived. So, I’d need to cut up that money between two shares that stability danger and reward: Lundin Mining (TSX:LUN) and Aritzia (TSX:ATZ). Every presents fully completely different publicity to commodities and retail, however each have sturdy potential over the following few years.
Lundin
Let’s begin with Lundin Mining. It is a base metals producer with operations in Canada, Chile, Brazil, Portugal, and the USA. It produces copper, nickel, zinc, and gold, with copper being its core enterprise. Copper demand is predicted to rise sharply due to its position in electrical automobiles (EV), inexperienced vitality, and energy grids. But provide is constrained by underinvestment and lengthy undertaking timelines. That places Lundin in a candy spot.
The dividend inventory’s most up-to-date earnings report confirmed a robust begin to 2025. Lundin posted income of US$1.6 billion, benefiting from improved manufacturing and better copper and nickel costs. Internet earnings got here in above estimates, and adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) had been additionally strong. Administration elevated its quarterly dividend to US$0.10 per share, up from US$0.07 the earlier quarter, marking a second hike in lower than a 12 months. That’s not simply respectable for a mining inventory, it’s beneficiant, particularly contemplating the upside potential if copper costs proceed to rise.
Lundin additionally targeted on enhancing its stability sheet. Debt has been steadily declining, and the dividend inventory is investing in effectivity throughout its mine portfolio. This disciplined strategy makes it extra interesting in a sector recognized for volatility. With $4,450, you can purchase about 319 shares of Lundin at the moment and earn dividend revenue whereas holding a inventory tied to one of the crucial necessary international commodities.
Aritzia
Now, let’s discuss Aritzia. This Vancouver-based clothes firm has carved out a distinct segment within the North American style area, providing glossy, stylish attire below its personal in-house manufacturers. Whereas it doesn’t pay a dividend, Aritzia delivers constant progress and profitability. At a share worth of roughly $32.50, the inventory remains to be recovering from final 12 months’s correction and presents worth to buyers who consider in its long-term technique.
Within the firm’s newest quarterly report, Aritzia posted a 12% improve in income in comparison with the identical quarter a 12 months in the past. Similar-store gross sales had been sturdy, and e-commerce continues to develop steadily. Administration additionally raised full-year steering, citing sturdy efficiency throughout each Canadian and U.S. areas. The corporate is increasing its bodily footprint with new shops whereas retaining stock and margins below management, a tough feat in retail. Gross margin remained strong, and working revenue rose sharply 12 months over 12 months.
Aritzia additionally advantages from a vertically built-in mannequin. It designs, sources, and retails its personal merchandise. That offers it extra management over high quality, pricing, and buyer expertise. It has turn into a go-to vacation spot for Gen Z and millennial buyers, particularly in city markets. With $4,450, you’d have the ability to purchase roughly 137 shares of Aritzia and maintain a well-run Canadian model with room to develop.
Backside line
By placing half of the $8,900 into Lundin and the opposite half into Aritzia, you get a balanced combine. Lundin offers you publicity to the uncooked supplies wanted for the vitality transition and international infrastructure. Aritzia offers you entry to the buyer facet of the economic system and a model that’s increasing at dwelling and overseas. One offers you revenue now, and the opposite offers you potential capital positive factors down the road. And when you watch for progress, Lundin can provide up $35.09 in annual dividend revenue!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| LUN | $13.91 | 319 | $0.11 | $35.09 | Quarterly | $4,436.29 |
This type of stability issues in at the moment’s market. With inflation nonetheless a priority and charges not but on the decline, buyers have to be selective. Each firms are well-managed, have clear methods, and are buying and selling at affordable valuations. If I had $8,900 to place to work on the TSX at the moment, that is how I’d do it.
