Got $1,000? 3 Top Canadian Stocks to Buy With it

Canadians with $1,000 to spare can use the money to buy top stocks than keep it idle. Extendicare stock, Dexterra stock, and Enerplus stock trades at less than $10 but pay decent dividends.

| More on:
Profit dial turned up to maximum

Image source: Getty Images

If you want your $1,000 to multiply, don’t leave it idle. Invest the money in the stock market. Canada’s main stock index keeps posting new records, as crude prices trend higher. The investing ground is very fertile. In time, your harvest from the meagre seed capital could be significant.

Frugal investors can purchase dividend stocks that trade at less than $10 but pay decent yields. The attractive options today are Extendicare (TSX:EXE), Dexterra Group (TSX:DXT), and Enerplus (TSX:ERF)(NYSE:ERF). All three are also steady performers in 2021.

Enduring the pandemic

The long-term-care (LTC) industry suffered severely in 2020 due to the global pandemic. Extendicare is a known provider of quality care and services for seniors across Canada. The $748.74 million company offers services such as LTC, retirement living, and home health care. It operates 69 LTC homes and retirement communities.

Extendicare had to overcome serious challenges in 2020 and continues to feel the ill effects of COVID-19. However, notwithstanding the extensive outbreaks in the second wave, revenue, and net operating income (NOI) increased 28% and 33% in Q1 2021 (quarter March 31, 2021) versus in Q1 2020.

However, the 82.9% occupancy rate during the quarter is far lower than the 97% from a year ago. The share price fell below $6 in mid-January but has recovered since. As of June 17, 2021, Extendicare trades at $8.96 (+39% year to date) and pays a generous 5.74% dividend.

Business resiliency

Dexterra, which is in the engineering and construction industry, engages in facilities management and operations. The $433.36 million company also helps resource and construction companies operate. Thus far, in 2021, the industrial stock is up 4% year to date. At $6.66 per share, the dividend yield is 4.44%.

Despite the economic downturn in 2020, Dexterra reported solid numbers for the full year (year ended December 31, 2021). Total revenue increased by 83% compared to 2019, while net earnings soared 593%. In Q1 2021 (quarter ended Mach 31, 2021), the financial results were equally impressive.

Management reported revenue and net earnings growth of 157% and 367% versus Q1 2020. Dexterra’s financial results reflect business resiliency in the face of adversities. The company caters to 10 vital industries from aviation and energy and resources to education and social housing.

High flyer

Enerplus has risen by 120% since the start of 2021. At $8.86 per share, the energy stock pays a 1.49% dividend. Market analysts recommend a buy rating and forecast a potential upside of 59% to $14 in the next 12 months. The modest payout plus the capital gain should increase the overall return.

The $2.11 billion independent oil and gas company develops high-quality assets in North America. Enerplus also benefits from the increasing oil demand this year, as evidenced by stellar results in Q1 2021 (quarter ended March 31, 2021). As a result, its adjusted net income increased by 167% versus Q1 2020.

Ian C. Dundas, Enerplus president and CEO, describes the quarter as a constructive start to the year for the company. He also mentions two strategic acquisitions that should support continued operational efficiencies. Management estimates average annual production this year to be between 111,000 and 115,000 BOE/day.

Noteworthy investments

The three dividend stocks are worthy of consideration by income investors. Their respective business outlooks in the recovery phase are bright. Your $1,000 investment will go a long way and multiply over time.

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 has no position in any of the stocks mentioned.

More on Dividend Stocks

growing plant shoots on stacked coins
Dividend Stocks

4 Ways to Grow $100,000 Into $1 Million in Retirement Savings

Anyone can build a million-dollar retirement portfolio. Here are four ways you could practically grow $100,000 to $1 million.

Read more »

A shopper makes purchases from an online store.
Dividend Stocks

3 Reasons to Buy TFI Stock Like There’s No Tomorrow

TFI stock (TSX:TFII) had a hard 2023, but now it's set up for a solid 2024, with an acquisition that…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

5 Secrets of TFSA Millionaires

These lesser-known secrets can help you set up the perfect long-term portfolio and achieve a million-dollar TFSA!

Read more »

analyze data
Dividend Stocks

How to Build a Powerful Passive-Income Portfolio With Just $20,000

These fundamentally strong TSX stocks have paid and increased their dividend in all market conditions. Add these stocks to build…

Read more »

Canadian stocks are rising
Dividend Stocks

iShares S&P/TSX Capped REIT Index ETF (TSX:XRE): Why I Like this ETF Better Than a Rental Property

XRE is a great ETF for gaining exposure to the Canadian real estate sector.

Read more »

Payday ringed on a calendar
Dividend Stocks

3 High-Yield Dividend Stocks That Pay Cash Every Month

These three dividend stocks all offer high yields and have sustainable dividends, making them some of the best investments to…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

3 Stocks That Could Create Lasting Generational Wealth

If you want to start transferring over your wealth, you'll need to actually have some! And these are three stocks…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

Down by 25%: Is Canadian Tire Stock a Buy in February 2024?

Take a closer look at this Canadian retail stock if you are looking for low-cost additions to your self-directed portfolio…

Read more »