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3 Simple TSX Stocks to Buy With $25 Right Now

Piggy bank next to a financial report
Piggy bank next to a financial report

Written by Demetris Afxentiou at The Motley Fool Canada

Market volatility for much of 2022 has exposed some compelling opportunities for investors to buy some great stocks at discounted prices. That includes some simple TSX stocks that can be purchased with as little as $25 right now.

Here’s a look at three different options to consider buying.

Option 1- Renewable energy

TransAlta Renewables (TSX:RNW) is a renewable energy stock that should be on the radar of investors everywhere. Apart from the massive long-term potential harnessed from renewables, TransAlta boasts a well-diversified growing portfolio of facilities.

Currently, those facilities include solar, wind, hydro, and gas sites across Canada, the U.S., and Australia. Collectively, those facilities generate over 3,000 MW of electricity.

Worth noting is that TransAlta follows the same business model as its fossil-fuel burning peers. In other words, those facilities are backed by long-term regulatory contracts. Those contracts provide a steady stream of revenue, which in turn means TransAlta can pay out a juicy monthly dividend.

That dividend currently works out to a yield of 5.44%. Best of all, the stock trades at just over $17 per share and is down by over 7% year to date.

That makes TransAlta one of the simple TSX stocks every portfolio needs to buy.

Option 2 – Precious metals

Mining stocks are interesting picks. When volatility is high in the market , investors run to the perceived safety of gold. By extension, that also helps to drive prices of the precious metal up. Throw in the current bout of market volatility and insane inflation and you have gold prices remaining flat.

As at time of writing, the yellow metal is hovering near US$1750 per ounce. That’s also where gold prices have held for the past year. And that works well for traditional miners like Barrick Gold (TSX:ABX)(NYSE:GOLD).

Barrick is a true titan in the mining field. It’s one of the largest miners on the planet, with over a dozen active mines in 18 countries. That level of activity is a key differentiator over Barrick’s traditional mining peers.

The gold miner’s high productivity helps it achieve, if not surpass its impressive guidance numbers, such as the 1 million gold ounces produced in the most recent quarter. That performance allows Barrick to continue paying out its impressive performance-based dividend. The dividend, which currently pays out an impressive yield of 5.19%, is among the best across the market.

Barrick currently trades at just shy of $20 per share and boasts an impressive P/E of just 13.49.

Option 3 – Global financial services growth

Manulife Financial (TSX:MFC)(NYSE:MFC) is a solid long-term pick. This is particularly true for investors looking for a financial stock outside of the traditional big banks. Manulife is the largest insurer in Canada. In fact, the insurance behemoth boasts that one in three Canadians is a customer of the company.

With that level of saturation, Manulife turned to foreign markets, specifically Asia, for growth. Through a series of exclusive agreements, Manulife sells its products to customers in those markets. The venture has allowed Manulife to expand quickly throughout the region, leading to impressive results.

More importantly, Manulife has only just tapped the surface of the region. This makes the stock appealing to long-term investors looking for growth and income. That potential should not be dismissed based on pandemic-era closures and slowness. If anything, it provides an opportunity for investors to enter at a discounted rate.

Manulife currently trades at just over $23 per share, with an insane P/E of just 5.9.

Finally, let’s not forget Manulife’s dividend. The current yield works out to an appetizing 5.7%, making it one of the better-paying options on the market.

Simple TSX Stocks: You can start with $25, or much more.

No stock is without risk. That’s certainly true for the three stocks noted above, and why it’s important to diversify your portfolio. More importantly, starting out small and sticking to a solid investment plan can quickly lead to a comfortable retirement.

Investing just $25 in each of the above three stocks each month is a fantastic way to start. Oh, and let’s not forget the reinvested dividends that will add to your future income over time.

Go on, and start investing in some simple TSX stocks today.

The post 3 Simple TSX Stocks to Buy With $25 Right Now appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Barrick Gold?

Before you consider Barrick Gold, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2022 ... and Barrick Gold wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 27 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 8/8/22

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Fool contributor Demetris Afxentiou has positions in Manulife Financial. The Motley Fool has no position in any of the stocks mentioned.

2022