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Where to Invest $1,000 in Canada

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Would you rather spend your $1,000 than invest in stocks because it’s too small? Investment amounts are relative in that you should focus more on returns. Newbie investors usually start with small capital to test the waters. Share accumulation can follow when the money compounds.

Also, you should invest not to lose money, regardless of the amount. The exercise is futile with the wrong investment choices. Today, TELUS (TSX:T)(NYSE:TU) and AcuityAds Holdings (TSX:AT)(NASDAQ:ATY) are the best value for your money. The duo offers income and growth over time. Likewise, the timing is perfect before their prices explode.

No hard sell

Canada’s second-largest telco needs no push, since communication needs are ever-growing. TELUS is a reliable income provider, because the business is revenue-generating, regardless of the economic environment. The payout ratio is high but defensible.

This $39.22 billion company spends billions of dollars annually to ensure Canadians receive excellent service 24/7. Management recently confirmed recently that TELUS had earmarked $54 billion in capital expenditures through 2024. This year, it estimates free cash flow to hover around $750 million. Expect TELUS to be at the front and centre of the next-generation 5G network rollout.

The efficient telecom operator targets a 70% coverage of the entire Canadian population by year-end 2021. Its president and CEO, Darren Entwistle, said the enormous investments in world-leading networks to expand the 5G footprint rapidly and PureFibre infrastructure will connect more Canadians to the people, resources, and critical information.

TELUS, through TELUS Health, is actively involved in improving the delivery of patient care in the country. The company has pumped more than $3 billion into the Canadian health ecosystem. Nearly all businesses, including TELUS International, create significant shareholder value.

You can purchase almost 18 TELUS shares ($28.82 per share) with your $500. Since the telco stock pays a 4.39% dividend, your investment will produce $21.95 in passive income. Imagine the dividends if your capital is 10 times more.

Pure growth play

AcuityAds is a pure growth play. The $632.76 million digital media solutions provider shows great promise following the stellar financial results in the first half of 2021. In the six months ended June 30, 2021, management reported a net income of $4.7 million. The company lost $1.4 million during the same period in 2020.

Illumin, AcuityAd’s new advertising automation platform, was the second-biggest growth driver in Q2 2021. Total revenue jumped 54.9% year over year. The net income for the quarter was $3.3 million compared to the $1.6 net loss in Q2 2020. Due to the strong pipeline growth, management expects Illumin to deliver strong sequential revenue growth in the second half of 2021.

Jonathan Pollack, AcuityAds’s chief financial officer, confirmed the significant financial strength to execute its growth strategy. He said its cash position rose to a record $93 million, thanks to robust cash flow generation and the NASDAQ listing. Market analysts recommend a strong buy rating for AcuityAds. They forecast a 93% upside from $10.47 to $20.19. The other half of your $1,000 could increase to $964.18 in the next 12 months.

Perfect stock combo

A $1,000 investment can grow big with the right mix of assets. TELUS and AcuityAds are excellent choices for growth, value, and income investors. The odds of losing are slim given the business performances and outlooks.

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 owns shares of and recommends AcuityAds Holdings Inc. The Motley Fool recommends TELUS CORPORATION and TELUS International (Cda) Inc.

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