Analysts often tell investors to shy away from looking at the price of a stock as the sole measure of whether or not it is a good investment, and there are good reasons for that.
New investors entering the market often want to maximize their investment with what little funds they have now and work their way up over the years to a sizable nest egg through growth and additional investments.
Here are five great investments to start your portfolio with. Each carries a stock price of under $100.
The telecom with a great dividend
BCE Inc. (TSX: BCE)(NYSE: BCE) is the largest telecom in the country, with a sizeable media empire that affects us daily. If you aren’t on a BCE-provided wireless, internet, or TV plan, chances are that you’ve interacted with someone, used one of BCE’s towers, or listened to one of the many assets the company has.
As an investment, BCE shines in a few ways. The core subscription services the company offers are supported by a vast infrastructure that spans from one coast to the other. This creates a moat larger than any current and future competitor. This massive moat allows BCE to reward shareholders with a strong dividend, which leads to my second point.
As a dividend investment, BCE shines. The quarterly dividend provides an appetizing 4.92% yield that, over the course of time, will provide ample growth when reinvested.
BCE currently trades at just over $58 with a P/E of 17.94
The efficient energy company
Suncor Energy Inc. (TSX: SU)(NYSE: SU) is not only the largest energy company in the oil sands, but it’s a growing force in several areas, including renewable energy.
Where Suncor really shines is when you begin to dig deeper into the company operations and results. Despite relatively anemic growth in oil prices over the past few years, Suncor has managed to improve efficiency considerably and cut costs, leading to better-than-expected results.
Those efficiency improvements have let Suncor remain profitable, even in the face of depressed oil prices. That efficiency has allowed the company to keep debt low — something that many of Suncor’s peers continue to struggle with. Suncor has also kept cash levels high, which, in the most recent quarter, hit $2.4 billion in cash and a further $5.7 billion in credit.
To top it off, Suncor offers investors a handsome dividend with a yield of 3.02%.
Suncor trades at just over $41 with a P/E of 25.68.
The international bank
Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) is neither the most renowned nor the largest of Canada’s big banks, but it is, without a doubt, the most international, boasting a diversified and enviable international portfolio.
Bank of Nova Scotia has invested substantially over the past few years into the Pacific Alliance — a group of four countries in Latin America that are targeting increased trade and removing all tariffs within the next few years.
When nations become parties to agreements such as the Pacific Alliance, commonality in banking often becomes a beacon for companies seeking to expand into member states.
Thanks to that investment, Bank of Nova Scotia has become a key player for international business transactions between the Alliance, and this has led to double-digit growth for Bank of Nova Scotia’s international segment in recent quarters.
Bank of Nova Scotia currently trades at $77 per share and pays a handsome quarterly dividend with a yield of 4.10%.
The precious metals star
Barrick Gold Corp. (TSX: ABX)(NYSE: ABX) has gained a reputation in recent years for the impressive efforts it has made in reducing its once burgeoning debt. Just a few short years ago, Barrick had over US$10 billion in debt, far exceeding the market cap of the precious metals miner.
Thanks to an impressive cost-cutting initiative with a razor-like focus on paying down debt, Barrick is now on track to be completely debt-free within a decade, and the precious metals market has recovered considerably since the multi-year slump, which greatly benefits the increasingly efficient Barrick.
Barrick trades at just over $21 with a P/E of 8.55.
