Investing in stock markets doesn’t always require huge capital. If you are disciplined, even small but regular investments could create significant wealth over a long period. So, here are the three Canadian stocks you can buy for less than $50.
Northland Power
Northland Power (TSX: NPI) has benefited from the growing interest in clean energy amid concerns over rising pollution levels. Further, Joe Biden becoming 46th president has given a significant boost to the clean energy sector. After delivering impressive returns of around 70% last year, the company has continued its upward momentum, with its stock price rising 3.2% for this year.
The company currently operates 2.6 gigawatts of power-generating facilities. Meanwhile, 1.5 gigawatts of additional projects are still under construction, including its acquisition of three onshore wind developmental projects in New York during the third quarter. These acquisitions could also aid in expanding its footprint in the lucrative U.S. green energy market.
Further, the company agreed to a strategic partnership with PKN Orlen last week to acquire a 49% stake in Baltic Power projects, which can generate 1.2 gigawatts of power. These acquisitions could expand the company’s footprint in Europe. So, given the favorable environment and its growth initiatives and acquisitions, I am bullish on Northland Power.
Enbridge
After losing over 20% of its stock value last year, Enbridge (TSX: ENB)(NYSE: ENB) has made a healthy start to this year, with its stock rising close to 7%. The expectation of improvement in oil demand amid the expansion of vaccination programs has led the company’s stock price to rise. Higher oil demand would increase its asset utilization rate in its liquid pipeline segment, driving its financials.
Meanwhile, Enbridge runs a highly regulated business, with less than 2% of its cash flows are at risk due to adverse price movements. So, the company’s cash flows are mostly stable. Further, it is progressing with its $16 billion secured growth projects, which could increase its adjusted EBITDA by $2 billion from 2023. The company’s management had also reaffirmed its long-term DCF growth guidance of 5-7% in December. So, the company’s growth prospects look healthy.
Enbridge has been rewarding its shareholders by raising its dividends for 26 consecutive years. For 2021, the company expects to pay dividends of $3.34 per share, representing an attractive forward dividend yield of 7.7%.
Facedrive
Facedrive (TSXV:FD) had witnessed high volatility last week, with its stock rising to a high of $37.89 and reaching lows of $21.95. It was unclear whether retail traders on the social media platform Reddit had anything to do with these swings. Meanwhile, at the close of Monday, the company was trading at $30.79, representing a rise of around 90% for this year. Last year, the company had returned over 600%. However, I believe the rally has more legs, given its growth initiatives.
Amid the increased COVID-19 cases, the demand for food-delivery services has been rising. So, Facedrive expanded its food-delivery services to 19 cities across Canada to meet the increased demand by partnering with 4,425 restaurants. It has around 250,000 active users on its platform. The company’s environmentally friendly approach and implementation of health and safety features on its platform have been gaining traction with customers. The company has plans to expand the service to other Canadian cities and the U.S. also.
Meanwhile, the company’s other verticals, such as e-commerce, ride-hailing, and healthcare segments, are also delivering healthy growth. So, despite the volatility, I expect the company to post superior returns this year.
