4 Canadian Stocks to Buy Under $10 for Superior Returns

These Canadian stocks have high-growth potentials and could deliver superior returns.

analyze data

Image source: Getty Images

Investing at a young age is advantageous, as your investment gets more time to harness the power of compounding. Further, you can buy high-returning stocks, as your risk-taking ability will also be high. However, your investment capital could be a constraint, as you have just started your career.

Meanwhile, don’t get discouraged by a limited budget. Even with small but regular investments, one can create significant wealth in the long term. So, young investors, who are planning to invest, here are four Canadian stocks that you can buy with just $10.

WELL Health

After delivering an impressive 1,680% in the last two years, WELL Health Technologies (TSX:WELL) is trading 5.5% higher for this year. Meanwhile, I believe the upward momentum could continue, given its aggressive acquisition strategy and increased demand for telehealthcare services. Through technological infrastructure, patients can receive medical care anywhere, anytime, in a cost-efficient way. So, I believe the demand for telehealthcare services to sustain even in the post-pandemic world.

Meanwhile, WELL Health looks to expand its operations in the U.S. In November, it had acquired a significant stake in Circle Medical, which provides telehealth services in 35 U.S. states. Last month, it had signed an agreement to acquire CRH Medical for US$292.7 million. These acquisitions, along with the expansion of its other verticals, could drive its financials in the coming quarters.


The cannabis stocks have witnessed a strong buying this year, as Democrats took control of both House and Senate in the U.S. Investors are optimistic that pro-cannabis bills, such as the SAFE Banking Act and the MORE Act, could soon become laws. Amid investors’ optimism, Hexo (TSX:HEXO)(NYSE:HEXO) is trading 90% higher for this year. However, it is still down 80% from its April 2019 highs.

Meanwhile, HEXO’s management announced last month that it had signed an agreement to acquire Zenabis Global for $235 million in an all-stock deal. Through this transaction, HEXO could become one of the top three players in the Canadian recreational cannabis market. It also provides access to the European markets for HEXO.

Further, the transaction could deliver $20 million of savings within one year of closing the deal, given the two companies’ synergies. So, this acquisition, along with the expansion of its product offerings, could drive its fundamentals in the coming quarters.

Pizza Pizza

The pandemic-infused lockdown has deeply hurt the foodservice industry. However, Pizza Pizza (TSX:PZA) has fared better than its peers due to its highly franchised business model. Amid the pandemic, the company expanded its delivery, pick up, and digital ordering channels and also introduced contactless pickup and delivery transactions, which helped the company mitigate some of its sales declines due to restrictions on dine-in-services. Meanwhile, these initiatives could drive the company’s sales in the post-pandemic world as well.

The expansion of the vaccination program could prompt governments to lift restrictions in the second half of this year, which could boost Pizza Pizza’s financials. Further, the company pays monthly dividends, with its dividend yield currently standing at 6%. So, I believe Pizza Pizza would be an excellent buy right now.

Kinross Gold

Amid the expectation of recovery in economic activities, investors shunned gold, the safe-haven-asset, to move towards riskier assets for higher returns, leading gold prices to fall. Lower gold prices have dragged gold-mining companies’ stock prices, such as Kinross Gold (TSX:K)(NYSE:KGC), down. As of Wednesday, Kinross Gold was trading over 40% lower from its 52-week high.

Meanwhile, its management expects its production to increase by 20% over the next three years, while its production cost could go down due to increased production from its low-cost mines. Amid the decline in its stock price, Kinross Gold’s forward price-to-earnings multiple has fallen to attractive levels at 8.3. It also pays quarterly dividends of $0.03 per share, representing a forward dividend yield of 1.5%.

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.

The Motley Fool owns shares of PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends HEXO. and HEXO. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Tech Stocks

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »

Wireless technology
Tech Stocks

Predictions for the Top Canadian Tech Stocks in June 2024

Whether it's the growth of artificial intelligence or e-commerce, these three tech stocks offer massive growth in June and beyond.

Read more »

Golden crown on a red velvet background
Dividend Stocks

These 5 Stocks Have Unstoppable Dividend Growth

These five stocks can form a diversified stock portfolio of dividend aristocrats from the TSX.

Read more »

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »