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.
