4 of the Best Under-$30 Canadian Stocks to Buy Right Now

Investing in stocks is easy and one of the cheaper ways to build wealth in the long run.

| More on:
money cash dividends

Image source: Getty Images

Investing in stocks is easy and one of the cheaper ways to build wealth in the long run. For instance, you do not need a large sum of money to start investing. A small but regular investment in top TSX stocks could help generate stellar returns in the long term. So, if you plan to start investing, here are four stocks that could deliver outsized returns in the coming years. Furthermore, these Canadian stocks are trading under $30. 

Air Canada

The persistence of the COVID-19 and uneven vaccine distribution continues to hurt advance ticket sales and indicates that Air Canada (TSX:AC) stock could have a bumpy ride in the short term. Despite the dip in demand and limited operating capacity, I am bullish on the long-term prospects of Air Canada. 

I believe the easing of travel restrictions could give a significant boost to Air Canada’s financials. Further, the wide availability of the vaccine in the latter part of the year is likely to lead to a solid sequential improvement in its financial and operating performance. I expect to see a sharp decline in its net cash burn and operating losses. Meanwhile, its top line is expected to improve, reflecting a revival in demand and strong momentum in the air cargo business.

Suncor Energy 

Shares of Suncor Energy (TSX:SU)(NYSE:SU) have witnessed a strong recovery in the last six months and have appreciated about 51%, reflecting a gradual pickup in demand. Despite the strong growth, I believe long-term investors should snap up Suncor Energy at the current levels, as economic expansion, recovery in energy demand, and higher average prices could significantly lift its stock.

Besides higher prices, increased production volumes, its integrated assets, lower cost base, and focus on a reduction in its debt position it well to deliver strong revenues and margins. Further, it is likely to enhance its shareholders’ returns through regular quarterly dividend payments and share buybacks. 


AltaGas (TSX:ALA) witnessed strong buying in its stock and is up about 43% in six months. The economic reopening, continued momentum in its regulated utility assets, and high-growth midstream business drove its cash flows and, in turn, its stock price. The utility company projects its 2021 EBITDA and EPS to grow by 12% and 20%, respectively, which indicates the strength of its business.

I believe the continued growth in its rate base, the addition of new customers, and cost efficiencies are likely to drive AltaGas’s profitability and its dividends. Furthermore, higher exports in the midstream business are likely to accelerate its growth rate. 

Algonquin Power & Utilities

Algonquin Power & Utilities‘s (TSX:AQN)(NYSE:AQN) low-risk and high-growth business helps it to deliver stellar returns consistently. The company’s regulated assets help it generate predictable and growing cash flows that support its growth initiatives and drive higher dividend payments. 

I believe the double-digit growth in its rate base, long-term contracts, and expense management are likely to drive solid growth in its adjusted EBITDA and earnings. Further, the company could continue to hike its dividends at a healthy pace, thanks to its high-quality earnings base and predictable cash flows. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD.

More on Dividend Stocks

Dividend Stocks

Enbridge Stock: This Dividend Aristocrat Looks Like a Steal in 2023

Here are some key factors that make ENB a great Canadian dividend stock to buy on the dip in 2023.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

U.S. Debt Ceiling: Is It Safe to Invest Right Now?

The U.S. debt ceiling is in the headlines again. You can play it safe by investing long term in wonderful…

Read more »

analyze data
Dividend Stocks

How to Invest $20,000 to Make Ultra-Safe Passive Income

Got $20,000 to invest for passive income? These three stocks are perfect for earning ultra-safe passive income for the long…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

For Passive Income: How to Turn $25,000 Into $158 Per Month

High-yield, monthly dividend stocks trading on the TSX such as Slate Grocery can help you earn a predictable stream of…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Canadian Dividend Stocks to Buy for Consistent Passive Income

These top dividend stocks have raised their distributions annually for more than two decades.

Read more »

Piggy bank next to a financial report
Dividend Stocks

Self-Directed RRSP: 2 Top Dividend Stocks to Buy in June 2023

These top TSX dividend stocks look cheap to buy today and offer attractive dividend yields.

Read more »

Dividend Stocks

Looking for Reliable Retirement Income? Consider These Dividend-paying Stocks

National Bank of Canada and another reliable income stock that could be a perfect fit for your retirement fund this…

Read more »

grow money, wealth build
Dividend Stocks

Are You Looking for High-Yield Investments? 3 TSX Stocks That Offer Excellent Payouts

These dividend stocks all offer solid payouts, as well as yields in the five to six percent range. So get…

Read more »