5 Stocks You Can Confidently Invest $500 in Right Now | Canada News Media
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5 Stocks You Can Confidently Invest $500 in Right Now

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You don’t need a lot to start investing in today’s world. With commission-free trading available on the Wealthsimple and National Bank of Canada platforms, new investors can easily spread their risk across different stocks. Let’s say you have $500 to spare right now. You can confidently invest across these top TSX stocks for the long term.

Bank of Nova Scotia

The large bank stock, Bank of Nova Scotia (TSX:BNS), is battered because it is perceived to be a riskier bank among the Big Six Canadian bank stocks due to its emerging market exposure. These markets have a higher percentage of loan losses. Given today’s generally higher interest rate and relatively high inflation environment, many investors are staying away from BNS stock.

The jewel of the value stock is a rich dividend that remains safe. Its dividend yield is over 7% at $60.41 per share at writing. At this price, the dividend stock trades at a price-to-earnings ratio (P/E) of approximately 8.6, which is a meaningful discount of roughly 23% from its long-term normal P/E.

Manulife

Another stock in the financial services industry that appears to be cheap is Manulife (TSX:MFC). It’s obvious the market has low expectations of the life and health insurance company, which only trades at a P/E of about 7.8.

Perhaps it requires a longer dividend growth streak to prove to investors it’s worthy. So far, it has increased its dividend for nine consecutive years with a respectable five-year dividend growth rate of 10%. Notably, its latest dividend hike was 10.6% in February.

At $26.13 per share at writing, the dividend stock offers a decent dividend yield of close to 5.6%. Its payout ratio is estimated to be sustainable at about 57% of earnings this year and 43% based on adjusted earnings.

Brookfield Infrastructure Partners L.P.

Since it was spun off from its parent company, Brookfield Infrastructure Partners L.P. (TSX:BIP.UN) has increased its cash distribution every year. Its 10-year cash distribution growth rate is 9.1%. Despite a higher interest rate environment, year to date, the global infrastructure platform still managed to grow its funds from operations per unit by 8.5% year over year.

Management is very excited about the opportunities available in its data centre segment. It has made meaningful acquisitions in the growing sector as it anticipates industry tailwinds from artificial intelligence and cloud deployments. Brookfield Infrastructure’s cash distribution yield of about 5.8% is attractive, as is the undervalued stock.

Dream Industrial REIT

In a higher interest rate environment, Dream Industrial REIT (TSX:DIR.UN) is also beaten down. In a generally favourable industry, the industrial real estate investment trust (REIT) maintains a high occupancy of north of 97%, allowing it to generate stable cash flows to support its cash distribution. Its portfolio is diversified across 322 industrial assets.

Dream Industrial REIT is a good consideration for investors looking for monthly income, as the Canadian REIT pays out juicy monthly cash distributions. The discounted stock offers a good cash distribution yield of 5.7%. At $12.27 per unit, analysts believe the stock is undervalued by about 23%.

Savaria

Savaria (TSX:SIS) is a name to consider to bank on a growing aging population. The global leader in the accessibility industry designs, manufactures, distributes, and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, and elevators for home and commercial use.

Additionally, Savaria manufactures and markets a selection of pressure management products for the medical market, medical beds for the long-term care market, and medical equipment and solutions for the safe handling of patients, including ceiling lifts and slings. Furthermore, it converts and adapts vehicles for personal and commercial uses.

Year to date, Savaria has experienced sales growth of 7.5%, adjusted earnings-per-share growth of 7.1%, and adjusted EBITDA (a cash flow proxy) growth of 8%. It also offers a dividend yield of 3.6%. At $14.16 per share, the 12-month analyst consensus price target represents a discount of roughly 26%. The small-cap stock has the potential to deliver above-average growth over the next 5 to 10 years.

 

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

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The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.

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