What’s the first number that catches your eye when you are looking for stocks to invest in? If you are a dividend investor, that’s probably the yield. For value investors, metrics like price to earnings or price to book might catch your eye. Growth investors might look for YTD, one-year, or three-year growth. But in the end, the number you end up “paying” is the price of the share.
Ironically, the price by itself rarely tells you whether it’s the right price or not. Still, if you have a specific price range in mind, and if that price range is $8 or under, there are three companies that you should look into.
A crypto stock
Crypto assets, including crypto stocks, can be considered unpredictable long shots. If they pay off, they can make you rich. But when they sink, they sink fast and hard. Take the example of HIVE Blockchain (TSXV:HIVE). Between the Jan. 2020 and Feb. 2021 peak, the stock rose more than 6,000%.
If you had invested $1,000 in the company and got out at precisely the right time, you’d have grown it to $60,000, which is enough to buy a Bitcoin at its current price.
HIVE has the distinction of being the first publicly listed crypto miner in the country and has one data centre here, two in Iceland, and three in Sweden. The company focuses on more than just Bitcoin and mines Ethereum as well.
Currently, this tech stock is not reflecting the recent spike in Bitcoin price, but it might soon catch up. And if you buy now, when the stock is trading at $3.4 per share, you can more than double your money if it rises to double digits.
If you are looking for a comical combination of a price that’s over 40% lower than its yield, the BTB REIT (TSX:BTB.UN) is the stock for you. The commercial REIT based in eastern Canada is still trading at a 25% discount to its pre-pandemic peak at a price of about $4 per share. And this generous dividend-paying REIT is currently offering a yield of 7.3%.
So, if you want to start a $100 a month passive income with this dividend stock, you will just need to invest $17,000 in it. The REIT has a portfolio of over 65 properties with an asset value of $924 million, which is more than thrice its current market cap. Yet its revenue seems to be recovering, and its payout ratio is flat at 100%.
A growth stock
Wildcard growth like what HIVE offers might not be your cup of tea, and if you are looking to invest in some reliable growth, StorageVault Canada (TSXV:SVI) might be what you are looking for. The company is trading at $5.4 per share, and it’s pretty expensive at its current price, but if you consider the stock’s capital growth potential, the price seems justified.
StorageVault offers a 10-year CAGR of 37.5% and has returned over 500% in the last five years alone. At this rate, it’s enough to grow your $1,000 to a sizeable, five-digit nest egg in fewer than 13 years. Another thing that makes StorageVault a powerful buy is its leadership position in a niche industry (self-storage spaces).
If you are planning to invest in stocks that are trading at a low price of $8 or less, even if the stock is overvalued, these three companies should be on your radar. Collectively, they offer a decent combination of dividend and growth — both predictable and unpredictable.