The federal government in Canada averted a catastrophe in the early days of the pandemic. It introduced aggressive income and credit support programs in 2020 to keep businesses and households afloat. While there were mass job losses, something good came out from the coronavirus breakout.
According to Statistics Canada, household net worth rose significantly in the first six months of COVID-19. Canadians were shoring up finances instead of spending. People had extra cash to buy income-producing assets. Those with limited resources can even invest in the TSX. In Q2 2021, you can purchase good stocks for $10 or below.
ARC Resources Ltd. (TSX:ARX) should be the choice of frugal investors. The current share price is $7.83, and the energy stock pays a 3.03% dividend. Market analysts recommend a buy rating due to recent developments. The price could soar 92% to $15 in the next 12 months.
The $5.66 billion company will soon merge with Seven Generations Energy. Expect the business combination to result in Canada’s sixth-largest oil and gas company. This merger is a foregone conclusion because shareholders in both companies approved the deal unanimously.
Furthermore, the new company will be the country’s largest condensate producer and third-largest natural gas producer. ARC Resources will be the surviving entity, and its current CEO, Terry Anderson, will assume the same role. The synergy will also generate $110 million in annual cost savings by 2022.
OrganiGram Holdings (TSX:OGI)(NASDAQ:OGI) is an exciting pick if you want to gain access to the cannabis space. The weed stock is on a roll in 2021 with its 93.5% year-to-date gain. You can purchase it for only $3.27 per share. Market analysts are bullish and see a potential 88% jump to $6.15 within a year.
The $975.22 million company from Moncton, Canada, produces and sells cannabis and cannabis-derived products. Investors’ interest in weed stocks is returning due to the anticipated federal legalization of marijuana in the United States. However, in Q2 2021, OrganiGram reported a 29% drop in revenue versus Q2 2020. Its net loss was $66.4 million.
Organigram’s CEO Greg Engel cites industry dynamics, COVID-19, and workforce limitations as the reasons for the not-so-good financial results. Still, Engel expects to generate higher revenue in Q3 2021. Organigram’s new product portfolio continues to gain traction. The recent acquisition of The Edibles & Infusions Corporation should bump up its cannabis edibles revenue.
B2Gold (TSX:BTO) shares are cheap at $6.21 and an excellent entry point. The gold stock is down 12.13% year-to-date, although analysts forecast a 61% rebound to $9.97 in the next 12 months. You’re also investing in an income stock because it pays a decent 3.19% dividend.
The $6.53 billion company from Vancouver, Canada has operating mines in Mali, Namibia, and the Philippines. Management is upbeat and expects B2Gold’s operational and financial performance in 2021 to be strong. In Q1 2021, all three operating mines exceeded budgeted production. Total consolidated gold production reached 220,644 ounces.
B2Gold projects total gold production for the full year 2021 to be between 970,000 and 1,030,000 ounces. Based on current assumptions ($1,800 gold price per ounce), the company should generate roughly $630 million in cash flows from operating activities.
Let your money grow
If you’re asking what you can do with your extra cash, let the money grow. It doesn’t require substantial capital to produce investment income in 2021.
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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.
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends OrganiGram Holdings.