Got $500? The Best Stocks to Buy Right Now

Even if you only have $500 to invest, these are the best stocks to buy right now to see your wealth grow for decades.

| More on:
Young woman sat at laptop by a window

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The TSX hit a milestone this week when it surpassed the 20,000-point mark. Over the last month alone, the Composite has risen 4.3% and 14.34% year to date. This tells us that despite the pullback in multiple sectors, the economy is recovering — so much so that it can feel hard to know the best stocks to buy right now.

What’s even worse is many investors feel they need to have a lot of cash on hand to even start investing. Not true. What you should do is first figure out how much you can afford after you put cash aside for your necessities like food, mortgage, car payments, etc. Then you can see how much of that you can put towards strong stocks — stocks that may be cheap but are still reliable.

So, if you have even $500 to invest, these are the best stocks to buy right now.

Insure your investments

Insurance companies sound boring, and that’s because they are. Boring really should read as reliable. These are safe investments where you can keep your cash for decades and see steady growth. And luckily, many are still trading below fair value. One such investment is Great-West Lifeco (TSX:GWO), which has seen steady share increases, even during the economic downturn.

The company made several acquisitions last year, bringing total assets up to $2.1 trillion — an increase of 5% since December 2020, making it one of the best stocks to buy right now from this growth. It also offers investors a 4.68% dividend yield that’s increased at a compound annual growth rate (CAGR) of 3.6% in the last decade. Shares are up 77% this year alone and 125% in the last decade for a CAGR of 8.44%.

Energize your stocks

There’s a reason that investors are flocking towards Enbridge (TSX:ENB)(NYSE:ENB) right now. It’s one of the best stocks to buy right now thanks to the rebound in the oil and gas sector. After about five years of downward trends, with usage in pipelines sinking, finally there is growth ahead.

As the economy rebounds, the usage of pipelines and Enbridge stock’s growth projects will increase. That increase in demand will lead to further cash flow, though the company is stabilized by long-term contracts for decades in the future. The company reaffirmed its 2021 guidance, expecting EBITDA between $13.9 and $14.3 billion and $10 billion of growth projects in service this year.

Shares of the stock are up 12.55% in the last year and 125% in the last decade for a CAGR of 8.48%. Meanwhile, Enbridge stock has a stellar dividend yield of 7.28% that’s grown at a CAGR of 14.32% in the last decade! This one definitely tops my list of buys.

Bottom line

Both of these stocks are stable investments that can see you through decades of growth. Even if you just have $500, you can invest that amount in both stocks and reinvest dividends to see substantial gains. Say you were to put $500 into both Enbridge stock and Great-West Lifeco stock for the next 30 years and only reinvest dividends. That could take your total to $738,489 based on current performance!

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 Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

More on Coronavirus

Business success with growing, rising charts and businessman in background
Coronavirus

1 Growth Stock Every Canadian Investor Should Consider Right Now

This growth stock saw shares pop 10% on June 20, as one analyst stated there is a significant opportunity to…

Read more »

Aircraft wing plane
Coronavirus

Bombardier Stock Merge: What it Means for Investors

Bombardier (TSX:BBD.B) stock went through a reverse stock split on June 13, turning 25 shares into one in one swift…

Read more »

Aircraft wing plane
Coronavirus

Air Canada (TSX:AC) Stock: Ready to Take Off?

While Air Canada is handling what it can control really well, there are many worsening macro headwinds that will likely…

Read more »

rail train
Coronavirus

Bull or Bear: Why Analysts Changed Their Tune on Aecon Stock

Analysts had been champing at the bit for the construction company, but the tides have turned.

Read more »

Biotech stocks
Coronavirus

Is Bellus Health Stock Still a Buy After 30% Earnings Jump?

The biotech continues to make progress on obtaining FDA approval for its chronic-cough therapy.

Read more »

grow dividends
Coronavirus

Goodfood Stock Likely to Double in 2022!

Goodfood (TSX:FOOD) stock has had a huge rise and fall in the last few years. But at $1.85 a share,…

Read more »

grow dividends
Coronavirus

Canfor Stock Pops 5% as Sales Climb 15% YOY

Canfor (TSX:CFP) stock remained positive about its future in the global lumber market after profits climb 15% year over year.

Read more »

edit Safety First illustration
Coronavirus

2 Crash-Proof TSX Stocks I’d Buy With $5,000

These two TSX stocks have proven they can handle this economic downturn and likely will continue to be safe far…

Read more »