4 Stocks Under $100 Each to Make a Great Portfolio

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one of several great investments that can serve as the foundation for a great portfolio.

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned.  

More on Dividend Stocks

woman retiree on computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

This TSX stock has given investors a dividend increase every year for decades.

Read more »

calculate and analyze stock
Dividend Stocks

8.7% Dividend Yield: Is KP Tissue Stock a Good Buy?

This top TSX stock is certainly one to consider for that dividend yield, but is that dividend safe given the…

Read more »

grow money, wealth build
Dividend Stocks

TELUS Stock Has a Nice Yield, But This Dividend Stock Looks Safer

TELUS stock certainly has a shiny dividend, but the dividend stock simply doesn't look as stable as this other high-yielding…

Read more »

profit rises over time
Dividend Stocks

A Dividend Giant I’d Buy Over TD Stock Right Now

TD stock has long been one of the top dividend stocks for investors to consider, but that's simply no longer…

Read more »

analyze data
Dividend Stocks

Top Financial Sector Stocks for Canadian Investors in 2025

From undervalued to powerfully bullish, quite a few financial stocks might be promising prospects for the coming year.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

3 TFSA Red Flags Every Canadian Investor Should Know

Day trading in a TFSA is a red flag. Hold index funds like the Vanguard S&P 500 Index Fund (TSX:VFV)…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

1 Magnificent Canadian Stock Down 15% to Buy and Hold Forever

Magna stock has had a rough few years, but with shares down 15% in the last year (though it's recently…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Earn Steady Monthly Income With These 2 Rock-Solid Dividend Stocks

Despite looming economic and geopolitical uncertainties, these two Canadian monthly dividend stocks could help you generate reliable income in 2025…

Read more »