Many investors have their own metrics and personal guidelines to assess and buy and stocks. Some prefer only buying undervalued stocks; others prefer fast-moving stocks, even when they are typically always overvalued. Dividend investors are comfortable with slow to no capital growth. They are happy as long as their dividends are safe and (ideally) growing.
If the current stock price is important to you, then the range of available stocks that you can buy depends quite heavily upon your price extremes. If you want to buy stocks under $10 or $15, your choices would be quite limited (especially if you don’t want to buy a venture capital stock). But if you want to buy something under $100, you will have access to a wide range of TSX stocks.
It can get tricky to choose from such a wide variety. So, we’ve picked out two great stocks that you may want to look into.
Killam Apartment REIT (TSX:KMP) is a very consistently growing stock. This Nova Scotia-based REIT has a portfolio that leans quite heavily on apartment buildings. About 89% of the company’s net operating income came from apartments as of September 2020. The rest comes from its mobile home communities and other commercial assets.
Killam is one of the most sizeable and well-performing apartment landlords in the regions it operates in. The company has about $3.5 billion in real estate assets. Over 63% of its properties are located in Nova Scotia and New Brunswick.
Killam has a robust balance sheet and a dependable revenue stream, which didn’t dwindle much, even in the last three quarters. It’s offering a decent 3.77% yield and is a bit underpriced right now. Its capital growth might not be very rapid, but it’s steady and consistent. It can be a fantastic long-term holding.
A financial aristocrat
Another stock that you can buy for just $100 is iA Financial (TSX:IAG). This Quebec-based company has a market capitalization of about $6.37 billion right now. The company is also a dividend aristocrat and has grown its dividends for six consecutive years — currently, the company offers a modest yield of 3.39%.
iA Financial is one of the most extensive insurance and wealth management groups in the country. It caters to over four million clients and has $181 billion worth of assets under management.
For investors, a more impressive number would be its 10-year CAGR of 9.6%. It’s not a lot, but this is one of the companies that can keep a steady growth going for a very long time. It has a consistent clientele, and if it can keep up with the evolving market, the company can become a dependable driving source that moves your portfolio forward.
When it comes to investing, starting early and picking up good companies might be more important than the capital you have to invest. In the right stocks, even smaller amounts can grow up to sizeable nest eggs (given enough time). You may want to consider putting your long-term holdings in an RRSP. This would get you a deduction and contribute towards your retirement funds.
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Fool contributor Adam Othman has no position in any of the stocks mentioned.