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Retire Early on This Cheap Drone Delivery Stock

The race to launch and scale drone delivery is much like the race to put a man on the moon in the mid-twentieth century. Nations, including Canada, are pumping a lot of money into automated aerial delivery systems, which are set to replace traditional short-distance logistics, drop shipping, and fulfillment services. In the U.S., the Federal Aviation Administration approved UPS as an air carrier in October, making it the first national U.S. drone airline.

Big tech companies like Amazon and Alphabet have already launched test programs before expanding drone delivery services to more customers. In December, Amazon will launch a Prime Air drone program in select areas to identify common pitfalls and devise solutions before a full rollout. But, that isn’t where the success stops; also, in October, a Google affiliate, Wing, began testing drone-delivered packages in Christiansburg, Virginia.

Canadian investors should also take note of drone delivery testing in Canada.

Drone Delivery Canada revolutionizes Canadian logistics

The TSX has its drone delivery technology corporation, Drone Delivery Canada Corp (TSX:FLT), a venture-traded stock headquartered in Ontario. Since 2009, the company has been researching and developing commercial technology to transform Canadian logistics.

On Wednesday, Drone Delivery Canada announced a new partnership with Air Canada and the Edmonton International Airport to manage the first drone delivery service from an airport. A partner like Air Canada is big news for a stock with a market cap of $130 million, trading at $0.74 per share.

Air Canada will provide sales and marketing support for Drone Delivery Canada, which has boasted licensed air carrier status with Transport Canada since 2017. Edmonton will provide the infrastructure and storage for the drone fleet. Meanwhile, Transport Canada will have access to all the data from the drone flights to augment and refine Canada’s drone delivery policies.

Easy, cheap investment for Canadians with little savings

Aspiring Canadian retirees can pick up 100-shares of Drone Delivery Canada for only $74. Micro-cap stocks in high growth, highly skilled technology verticals promise a minimal downside with great long-term upside potential. If you want to retire in 20 to 30 years, this stock is the perfect long-term investment.

Emerging technology like that at Drone Delivery Canada offers shareholders high potential returns if they can get in when demand is soft and sell when the price is higher. The best thing about this strategy is it doesn’t cost a lot to implement, and families with less capital to invest can more easily diversify their portfolios.

Foolish takeaway

If you want to retire but aren’t sure how to go about it, learning to self-manage your retirement accounts is easy. Even better, you do not need to have a substantial nest egg to get started. There are many high-flying stocks out there in high-growth sectors at affordable prices.

Affordable stocks may seem riskier because they are still new and under-the-radar. While this is true, they also tend to have less downside risk than more expensive stocks. You stand to lose much less of your initial investment with cheaper stocks.

Many expensive stocks like Shopify can go through long periods of enormous capital losses from peak to trough, causing significant anxiety for everyday investors. Don’t let your retirement fund cause you to lose sleep at night! Create a diversified portfolio with undervalued stocks, and you might find yourself selling the next Shopify in 30 years when you retire.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Debra Ray has no position in any of the stocks mentioned. David Gardner owns shares of Alphabet (A shares), Alphabet (C shares), and Amazon. Tom Gardner owns shares of Alphabet (A shares), Alphabet (C shares), and Shopify. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Shopify, and Shopify.

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