Canada Markets closed

The 3 Best Canadian Stocks I’d Buy With $300 Right Now

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
Businessmen teamwork brainstorming meeting.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors with a long-term mindset can build a significant amount of wealth by investing in the stock market. Also, you don’t need a large nest egg to start investing, as there are plenty of top-quality stocks available at attractive prices. So, if you can spare $300, the following three Canadian stocks are must-haves in your portfolio to build wealth in the long run.

goeasy

goeasy (TSX:GSY) is undeniably one of the best Canadian stocks to create wealth. Its stellar financial performance and strong growth prospects have led to a multi-fold jump in its stock. For those who do not know, goeasy stock has appreciated about 2,400% in 10 years. Moreover, it has increased by nearly 768% in five years and is up about 171% in one year.

Despite the massive growth in its stock, goeasy is an attractive bet for investors with a long-term mindset. The subprime lender could gain significantly from the improving macroeconomic outlook, which is likely to drive loan origination and customer demand. Meanwhile, its omnichannel model, commercial partnership, new product launches, and strategic acquisitions could accelerate its top-line growth and support double-digit growth in its bottom line. Also, its strong payments volumes and operating leverage from growing scale and lower credit losses augur well for future growth.

goeasy has consistently delivered double-digit earnings growth in the past 19 years. Moreover, I expect the momentum to sustain in the coming years. Thanks to the stellar growth in its profitability, goeasy uninterruptedly paid dividends for 17 years in a row and increased it at a CAGR of 34% in the last seven years.

Bank of Montreal

Canadian investors looking for top long-term stocks could consider buying the shares of Bank of Montreal (TSX:BMO)(NYSE:BMO). The bank has consistently grown its earnings at a solid pace and boosted its shareholders’ returns through higher dividends. Thanks to its ability to grow earnings, Bank of Montreal regularly paid dividends for 192 years and increased it at a CAGR of 6% in the past 15 years.

I believe the steady growth in the economy, its diverse revenue model, and improving credit demand could provide a solid platform for future growth. Besides improving loan and deposit volumes, I expect Bank of Montreal to benefit from lower credit loss provisions and tight expense management.

Shares of Bank of Montreal registered growth of about 76% in one year. However, its valuation is still within reach, indicating further upside in its stock. Further, the Canadian bank pays a quarterly dividend of $1.06 a share, translating into a yield of 3.3%.

Cineplex

Cineplex (TSX:CGX) stock is up about 77% this year, yet it is trading at a massive discount compared to the pre-COVID levels. Its financial and operating performance took a significant hit from the outbreak of the pandemic, which eroded its revenues and operating capacity. However, the ongoing vaccination and expected recovery in its revenues and earnings are pushing its stock higher.

Despite the recent growth in its stock, Cineplex offers further upside and is an attractive investment at current levels. I expect the company to deliver a robust set of financial numbers, as its operations return to normal.

I expect a sharp sequential improvement in Cineplex’s revenues and earnings in the coming quarters, driven by the reopening of its entertainment venues and theatres. Moreover, its cash burn is likely to go down, while a lower cost base could continue to cushion earnings and drive its stock higher.

The post The 3 Best Canadian Stocks I’d Buy With $300 Right Now appeared first on The Motley Fool Canada.

Besides these top long-term bets, take a look at this free list of high-growth, CHEAP stocks right now:

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

More reading

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends CINEPLEX INC.

2021

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting