Yahoo Finance 5 Stocks You Can Confidently Invest $500 in Right Now
Written by Robin Brown at The Motley Fool Canada
No stock is ever a sure bet. There is always some risk involved when investing. That is why it is important to have a diversified portfolio of stocks.
At times, certain stocks and segments will underperform or outperform. Having a mix of stocks helps ensure a more stable and steadier upward trajectory in your portfolio.
If you are looking for a starter portfolio that you can confidently hold for a few years to come, here are five stocks to put $500 into.
A top energy stock
Tourmaline Oil (TSX:TOU) is an intriguing cyclical stock to consider adding today. While many recognize it as Canada’s largest natural gas producer, it also has a significant liquids business. Even though natural gas prices have been in the doldrums, Tourmaline is still expected to generate decent free cash flow in 2024.
The good news is that natural gas prices don’t tend to stay in the valley for long. At some point prices will (at least) normalize, and Tourmaline could see some decent upside. The company has a strong balance sheet, so it is likely to continue its record of dividend growth and special dividends.
Real estate for income
If you want income, Granite Real Estate Investment Trust (TSX:GRT.UN) is a good bet. It raised its monthly distribution for 13 consecutive years. Not many real estate stocks have such a good record.
Granite’s portfolio of industrial properties in North America and Europe have an infrastructure-like quality. They form the backbone of commerce. Granite has long-term leases (over six years) and strong 95%-plus occupancy.
Likewise, it has a fortress balance sheet that amply supports its distribution and the potential for development and acquisition growth. Granite yields 4.4% and it still trades at a discount to its private market value.
A top Canadian financial stock
If you are looking for growth and income, goeasy (TSX:GSY) is a stock to contemplate buying with $500. goeasy has become one of Canada’s largest lenders to the non-prime segment. It has built out a retail network that has created a strong recurring lending relationship with its clients.
Likewise, it continues to broaden the scope of the products and services it provides. This includes expanding into auto loans, buy-now-pay-later option, and even credit cards.
goeasy stock earns a 2.9% yield. The company has grown its dividend by a 25%-plus annual rate for the past 10 years. Earnings per share rose by a similar rate during that time. The outlook looks positive ahead if it can continue to execute.
A growth-at-a-reasonable price stock
Calian Group (TSX:CGY) is a pick for growth-at-a-reasonable price. Calian is a leading service provider to the Canadian government, private businesses, and other institutions. The consultancy and software firm has a diversified business in healthcare, cybersecurity, advanced technologies, and training.
The company has been growing by a mid-to-high teens rate over the past five years. It just made several acquisitions that will expand its service capacity and geographic reach.
Calian is projecting 30%-plus earnings growth in 2024. Yet, this stock only trades for 12 times earnings today.
A top Canadian tech stock
A growth stock to consider buying with $500 is Descartes Systems (TSX:DSG). This is by far the priciest stock in this list. Yet, the company has steadily and consistently delivered good results for shareholders. DSG is up 671% over the past 10 years.
Descartes provides a crucial logistics network that is complimented by an array of software services. Global transport and trade are becoming increasingly more complex. Fortunately, Descartes has a growing mix of services and businesses that help solve these problems.
Its growth trajectory is still in the early innings. Sometimes you just have to pay up to own the highest quality businesses like Descartes.
The post 5 Stocks You Can Confidently Invest $500 in Right Now appeared first on The Motley Fool Canada.
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Fool contributor Robin Brown has positions in Calian Group, Descartes Systems Group, goeasy, Granite Real Estate Investment Trust, and Tourmaline Oil. The Motley Fool recommends Calian Group, Descartes Systems Group, Granite Real Estate Investment Trust, and Tourmaline Oil. The Motley Fool has a disclosure policy.
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