2 Top TSX Stocks Under $50 to Buy for the Long term

Here’s why Spin Master (TSX:TOY) and Enbridge (TSX:ENB)(NYSE:ENB) are among my top picks in Canada right now for long-term investors.

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For investors who are on a tight budget, there are some excellent options on the TSX today. Plenty of stocks under $50 exist to help diversify one’s portfolio and provide excellent long-term returns.

However, some stocks are better than others.

These two stocks have been on my top picks list for some time. And now is as good a time as any to consider these top names.

Let’s dive in.

Spin Master

Although Spin Master Corp. (TSX:TOY) is primarily a toy company, this company also has a very intriguing growth thesis to consider.

Spin Master’s digital gaming segment has a tonne of momentum right now. In the latest quarter, this segment generated revenue of $32 million. While that’s nothing to write home about, it’s the growth rate that has investors excited. This segment delivered a whopping year-over-year growth rate of 400%.

Yes, you read that right.

The reason for this? The growing popularity of Spin Master’s Toca Life World App.

This application is free to download, but like many free-to-play games, in-app purchases are where Spin master makes its money. The company’s Sago Mini kid’s app has also made significant contributions to the company’s revenue growth.

Accordingly, Spin Master represents a unique growth play in an established, mature business. Accordingly, the company’s relatively high valuation multiple is justified. For those looking for a real long-term growth gem, Spin Master remains an excellent choice.

Enbridge

For those looking for a long-term core portfolio holding, few companies are as highly-qualified as Enbridge Inc. (TSX:ENB)(NYSE:ENB).

This pipelines player is a massive one, with some of the best assets in the industry. Additionally, this Calgary-based company has favourable long-term contracts with some of the largest oil producers in this country, enabling Enbridge to provide long-term cash flow stability and consistently increase its dividend over time.

At the time of writing, Enbridge has a dividend yield of 7.2%, which is quite substantial.  I believe there’s ample room for this company to increase its dividend wants its new pipeline projects are fully operational. Indeed, the company’s committed to dividend increases of roughly 3% a year over the medium-term.

Enbridge has a valuation multiple of 31-times earnings which is quite reasonable given this stock’s quality. Yes, the company has been on a relatively rocky trajectory of late due to geopolitical headwinds tied to the Biden Administration. However, I still think this is a stock that has staying power and long-term upside for investors.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge and Spin Master.

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