The stock market is one way of building wealth for your retirement. It can be intimating at the beginning of your investing journey, but the earlier you start, the earlier you can begin planning your retirement.
When it comes to investing in the stock market, there are a few ways of putting your money to work. If you’re willing to spend the time researching public companies, owning individual stocks might be just the route for you. For others, investing in a low-maintenance exchange-traded fund (ETF) may be of more interest.
There’s also absolutely nothing wrong with owning both individual stocks and a few different ETFs. In fact, it’s a great strategy for anyone starting out. An ETF can provide your portfolio with much-needed diversification as you slowly build up your portfolio of individual stocks.
Investing in the Canadian stock market isn’t always cheap. Buying just one share of some companies on the TSX could cost upward of $1,000. So if you don’t have the option of buying fractional shares, you might want to look at lower-priced stocks to start.
With that in mind, here’s a list of three top Canadian stocks trading below $100 a share right now. I’ve got all three on my radar this month.
Brookfield Renewable Partners
Any new investor would be wise to have exposure to the growing renewable energy sector in their portfolio. The green energy sector’s growth has outpaced the market in recent years and I’m betting that the growth is just getting started.
At a market cap of $12 billion, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a top renewable energy provider in the country. The company offers its customers a range of different green energy options.
The Canadian stock has more than doubled the returns of the market over the past five years. On top of that, its annual dividend of $1.51 per share yields more than 3% at today’s stock price.
Not only are shares priced below $50, but they’re also trading at a discount. The stock is down close to 30% from all-time highs.
This top pick should be on your watch list this month.
The Canadian banks aren’t the most exciting stocks on the TSX, but that doesn’t mean they don’t belong in a long-term investor’s portfolio.
Even though TD Bank is trading at near all-time highs, it’s still trading at a bargain price. And I’m not only talking about its stock price, either. The bank stock is trading at a forward price-to-earnings ratio of just over 10.
Dye & Durham
This tech stock is by far the most expensive of the three on this list. Shares of Dye & Durham (TSX:DND) may be priced below $50 but it’s trading at a price-to-sales ratio of 15. While it’s not cheap, it’s nowhere near where some other Canadian growth stocks are trading.
The Canadian stock is up 75% over the past year, which explains the high price tag. It’s down 20% from all-time highs, though, which is one of the reasons I’ve got it on my watch list this month.
If you’re looking to add some growth to your portfolio, Dye & Durham is a solid choice. It’s reasonably priced and still has plenty of market-beating growth potential left in the tank. The growth stock is also trading at a rare discount.