Got $1,000 to Invest? Buy These 3 Stocks for Under $10

$1,000 in seed capital can compound threefold in the stock market. Mogo stock, WELL Health stock, and Rogers Sugar stock trades at less than $10 but can potentially deliver superior returns.

Frugal investors have chances to earn big like their more moneyed counterparts. There are TSX stocks you can buy at less than $10 per share. Even a meagre $1,000 investment could deliver superior returns. One company is a low-risk, high-return choice, while two others have visible growth potentials.

Surging fintech

Vancouver-based Mogo (TSX:MOGO)(NASDAQ:MOGO) should be a top hit among tech-savvy millennials. Fintech companies have risen in popularity in the last decade. The finance app of this $412.11 million firm aims to empower consumers with simple solutions to control financial health better. Mogo’s goal is to become the go-to financial app of the next generation of Canadians.

This fintech stock is having a rip-roaring start this year. The price rose 141.7% on February 9, 2021, from $5.45 on the month’s first trading day. It has gone down to $8.93 on March 5, 2021, but is still 243.5% higher than it was a year ago. Analysts forecast the price to climb 79.2% to $16.

Mogo’s platform was purpose-built to deliver a best-in-class digital experience, with best-in-class products in one account. Mogo’s wholly owned subsidiary, Carta Worldwide, is expanding into the large U.S. largest payments market. The modern card-issuing platform will introduce innovative card products for pioneer clients in Q1 2021.

Accelerating demand

Expect the shares of WELL Health Technologies (TSX: WELL) to fly higher in 2021. This $1.23 billion company is an owner and operator of primary healthcare facilities. However, it’s also well known in the healthcare space stock for its digital electronic medical records software and telehealth services.

The health/tech stock currently trades at only $7.63, although it’s a far cry from the $1.68 price tag it had a year ago. Had you invested $1,000 in WELL then, your money would be worth $4,541.67 today. The capital gain is an astronomical 354.2%. The business should thrive further, as demand for telehealth services accelerates in the pandemic world.

WELL likewise eyes the lucrative U.S. healthcare market. Its recent acquisition of CRH Medical will pave the way for greater access. Analysts recommend a buy rating, predicting a nearly 77% appreciation to $13.50 in the next 12 months.

Must-own dividend stock

Rogers Sugar (TSX: RSI) is a perennial choice of thrifty dividend investors. The consumer-staple stock trades at $5.34, but the dividend offer is an incredible 6.74% dividend. Don’t expect much on the capital gain, as the price is usually flat. The business is low growth, although dividend payments should be stable and recurring. It’s a must-own, income-producing asset for long-term investors.

Rogers Sugar’s core business is refining, packaging, and marketing sugar. The secondary business segment produces and sells maple — a higher margin product. The $552.88 million company posted record-breaking sales volume across all business segments in Q4 fiscal 2020.

Total revenues from the full year increased 8.4%, resulting in $35.4 million net income versus the $8.1 million net loss in the previous year. Despite the prevailing market uncertainty, management expects to duplicate the company’s strong fiscal 2020 performance. The volumes in sugar and maple segments should grow in fiscal 2021.

Small capital, significant gains

Canadians with limited seed capital can still make their money work and earn superior returns. The three stocks in focus can deliver significant gains, even if you only have $1,000 to invest.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

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