Cheap top stocks are the best way for any new investor to get started. The lower price of entry makes it easier to add certain noteworthy companies to your long-term portfolio. Cheaper top stocks also don’t need much of a push to deliver stunning appreciation. While a $1 pop for a $100 stock doesn’t move the needle, it could add 10% to a stock priced at $10.
With that in mind, here are three top stocks that are priced below $15.
Real estate top stocks
Real estate investment trusts, or REITs, are a cheap and convenient way to add the most expensive asset class on the planet: real estate. Rather than saving up hundreds of thousands of dollars and jumping through hoops to secure a mortgage, you can add a basket of the world’s best properties at the click of a button.
Two of my favourite REITs are top stocks priced below $15. Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) currently trades at just $13. A few months ago, the stock was worth $26.2.
The trust owns and operates some of the most iconic properties in the world. From Brookfield Place in Toronto to London’s Canary Wharf, the trust’s portfolio is absolutely peerless. However, with people confined to their homes and businesses shutting down, this stock has declined since the outbreak began.
I believe the stock’s 9.66% dividend yield could be in peril. But even if the company is forced to cut the dividend by half, the yield could still be an attractive 4.8% — that’s better than most Canadian top stocks even in the worst case scenario. Meanwhile, the underlying real estate isn’t likely to lose much value even if the economic downturn persists.
Essential top stocks
However, if you’re skeptical of commercial real estate, I’d suggest WPT Industrial Real Estate Investment Trust (TSX:WIR.U). Unlike Brookfield, WPT operates mundane but essential real estate such as warehouses and storage units. These non-descript buildings serve as the cornerstone of the booming e-commerce market.
As online shopping continues to consume traditional retail, WPT’s cash flows are secured for the foreseeable future. Those cash flows are delivered to investors in the form of a 7.11% dividend yield.
This top stock traded well below $15 in late March. Since then, it has surged nearly 46%. The stock is now worth just $15.33. I believe it deserves a spot on your watch list regardless of whether you’re a growth or income-oriented investor.
Telemedicine top stocks
The cheapest top stock on this list is also the most fascinating. Vancouver-based Well Health Technologies (TSX:WELL) is priced at just $2.98 at the time of writing. I added it to my portfolio when it was trading at $1.55 in March. I believe there’s plenty of room left to grow.
Well Health operates in the health tech space which is ripe for disruption. Medical professionals and clinicians need a data-driven digital way to manage patient data. Now that everyone is confined to their homes, these medical professionals also need a way to connect with patients online.
Well health’s medical records software platform and its VirtualClinic+ telemedicine service solve both problems. The company even owns and operates its own independent network of clinics, adding a real estate component to the valuation.
In its entirety, healthcare technology is an industry worth trillions of dollars. There are very few start-ups targeting this industry effectively. WELL Health certainly stands out as a noteworthy competitor.
If you’re looking for a speculative bet on a potential multi-bagger, I suggest adding this top stock to your list.
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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 Vishesh Raisinghani owns shares of WELL. The Motley Fool recommends Brookfield Property Partners LP.