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.
HEXO
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%.
