Don’t have the budget to buy Amazon at +US$3,000 per share? Wish you could one day purchase an A Class share of Berkshire for +US$380,000 per share?
Fear not. In this article, I’ve got three picks Canadian investors can pick up for less than $50 a pop.
These three companies are among my top picks for any investor type. Those looking for growth, income, and a decent margin of safety are covered with these three top picks.
For nearly five decades (that’s decades, not years), Fortis has hiked its annual dividend. The company has been able to do this mainly because of a rock-solid business model. The vast majority of Fortis’s cash flows are generated via its regulated utilities business. This is important for long-term investors to consider. Indeed, unless Fortis’s customers all decide to stop turning the heat on and leave the lights off, Fortis will continue to generate long-term cash flow growth.
Accordingly, Fortis provides a safe, defensive equity option for income investors today.
However, Algonquin’s unique among its utilities-oriented peers. That’s because this company has an excellent renewable energy portfolio. In fact, the company has been acquiring assets in recent years at a pretty impressive pace. Algonquin’s now earning roughly 35% of its revenue from its renewable power segment, making this a perfect investment for those with a long-term time horizon.
Accordingly, for those who believe the electrification secular trend isn’t likely to end soon, Algonquin is a stock to keep an eye on right now.
Another one of my top picks for some time has been Alimentation Couche-Tard (TSX:ATD.B).
Couche-Tard is a unique growth-at-a-reasonable-price play. The historical growth Couche-Tard has provided investors has been discounted due to a lack of deal flow of late, and a large $20 billion failed bid for French grocery retailer Carrefour that has spooked investors.
That said, I think this is a company with a valuation that is simply too cheap to ignore right now. Currently, Couche-Tard trades at only 16 times earnings. Given where valuations are in the market today, investors would be remiss to avoid looking at this investment opportunity right now.
Like these top picks? Here are a few more to consider right now:
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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.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC, Amazon, and Berkshire Hathaway (B shares). The Motley Fool recommends FORTIS INC and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares).