Investors that are just starting their portfolios are often left struggling with what the best investments are. Diversifying with both growth- and income-producing stocks often yields the best results, but often new investors need to pick one or the other to start off.
Fortunately, the market provides us with an ample supply of investment opportunities for nearly every scenario, including new investments.
Here are a few investments that will provide ample growth and income opportunities for new investors, and are all priced at under $50 each.
Metro, Inc. (TSX: MRU) is one of the largest food and pharmacy distributors in the country with a sprawling network of over 1,000 locations and over 63,000 employees. As a food distributor, Metro operates in a unique environment alongside utilities and health providers in that they provide a necessary service to the public, but, unlike paying an electric bill, consumers enjoy shopping for and consuming food.
While many investors often overlook that fact, it’s not the main reason Metro is a great growth stock. The company recently announced a deal to acquire Quebec-based the Jean Coutu Pharmacy Group in a $4.5 billion deal which will shore up Metro’s presence in Quebec and allow the company to enter the lucrative health market.
Metro is forecasting $75 million in synergies from shared merchandising and cross merchandising of product over the next three years.
Metro currently trades at $40 with a P/E of 16.21.
Shaw Communications Inc. (TSX: SJR.B)(NYSE: SJR) may be just the fourth-largest telecom in the country, but the Calgary-based company is in the midst of a massive wireless initiative that has long-term potential already raising the brows of its competitors.
Wireless service is an area that has grown significantly in recent years, as smartphone adoption reaches a saturation point and data consumption seems to be doubling with each passing year.
Data costs and roaming fees are viewed as a treasure trove of revenue to carriers, but they are much loathed by consumers.
When Shaw purchased the remnants of Wind Mobile, it was targeting to upset the mobile market by offering a nationwide service that consumers would view as a real alternative. Earlier this year, Shaw made a major spectrum purchase and plans to spend upwards of $350 million to deploy that spectrum primarily in western Canada.
The question around Shaw’s mobile strategy is not so much if the company will succeed, but when. Most analysts see the company capable of securing 25% of the market over the long term.
Shaw currently trades at just over $27 with a P/E of 25.05.
Manulife Financial Corp. (TSX: MFC)(NYSE: MFC) is the largest insurer in Canada, counting on one in three Canadians as clients. Canada’s insurance market has grown saturated in recent years, leading Manulife and other insurers to look outside Canada for significant growth opportunities.
That opportunity is Asia.
Asia is experiencing the single largest explosion of wealth ever, with upwards of a trillion dollars likely to be passed down to the next generation. That sudden injection of capital is creating a huge middle class across Asia with both the money and desire to buy the products Manulife offers.
Manulife has entered several strategic partnerships with financial institutions in Asia, becoming the preferred, if not exclusive, provider of those financial products. To date, the venture has reaped significant rewards for the company, with the Asian region continuing to yield strong growth for the company.
Investors considering Manulife can also benefit from the respectable 3.15% dividend yield that is on offer.
Manulife currently trades at just over $26 with a P/E of 14.18.
