Canadians learned to save during the pandemic. We paid down debt and hoarded cash, and in the next decade, analysts believe we’re going to spend it. But don’t believe everything you read! Canadians learned to be financially responsible during the pandemic, and those lessons aren’t about to go out the window. That’s why I’m here to help with four Canadian stocks to buy, each under $25. So, even if you only want to start out with a small stake, you can be responsible knowing it’s not going to cost you all that much.
One of the best Canadian stocks to buy right now continues to be Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). The utility and energy producer has seen stable revenue growth during the pandemic but is likely to see an increase when it comes to an end. This comes from its strong growth both organically and through its acquisition strategies.
Shares of the company are up just 13% in the last year, experiencing a pullback like the rest of the energy sector. However, this means it’s a steal at a trading price of just $19.35 as of writing. It currently offers a price-to-earnings (P/E) ratio of 10.53, right before it announces its earnings report on August 12. Motley Fool investors would be wise to consider this stock before another boost and lock in a 4.44% dividend yield.
Suncor Energy (TSX:SU)(NYSE:SU) trades just above $25 per share as of writing, so I apologize if it’s now above the threshold. But even still, it’s one of the most solid Canadian stocks to buy in the rebound. As commodity prices increase, Suncor stock is likely to continue seeing its revenue rise, as it has for the last two quarters. It’s now moved up from over $3 billion in losses in the first quarter of 2020; these gains not only cover operating expenses but its dividend, too. It looks like Suncor stock learned to save, too!
This could mean Motley Fool investors get treated to a dividend increase, especially as the company slashed it by more than half back in 2020. Shares are up 20% in the last year, but it remains a steal with a price-to-book (P/B) ratio of just 1.1! And you can still get a dividend yield of 3.21% as of writing.
It’s not just energy that’s seeing growth in a rebound but construction and infrastructure as well. That’s why Motley Fool investors can’t find a better deal than with Aecon Group (TSX:ARE). The company currently trades at just over $20 per share, climbing 43% in the last year. The stock’s amazing quarterly results led to a 13% jump in share price, leading to a trading halt. And it wasn’t just from making cash.
Aecon is one of the best Canadian stocks to buy right now, as it has both major projects in the works and billions of cash in backlog projects. It’s this future growth that investors should lock into, and yet it’s still super cheap with a P/E ratio of 13.28 as of writing. Plus, you can lock in a dividend yield of 3.48% to add to your growing portfolio.
Just because we’re seeing growth in post-pandemic areas doesn’t mean there won’t be growth in others. Healthcare is likely to continue seeing growth in the foreseeable future, but in the case of NorthWest Healthcare Property (TSX:NWH.UN), it’s not just growth alone. The company has been on a spending spree, spending over $2.5 billion in acquisition investments.
Shares of NorthWest cost just $13 per share and are up 28% in the last year. However, it remains a steal with a P/E ratio of 9.72 — especially considering future growth. The best part? Motley Fool investors also receive a whopping 6.17% dividend yield. So, this is also one of the strongest (and cheapest) Canadian stocks to buy during the market rebound.
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 NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.