What does it mean to choose stable TSX stocks? Stability means there will be little volatility at times like these, when the market starts to fall. While this might lead to slower returns year to year, it can end up meaning huge returns in the long run.
Even if you’re a Motley Fool investor who doesn’t have much to invest, choosing stable TSX stocks means you can sleep well knowing your small investment is growing. And by adding to it when you can, that investment will grow higher and higher in the decades to come. So, today, I’m looking at three TSX stocks under $10 that fall right into this category.
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Storage Vault
Storage Vault Canada (TSX: SVI) trades at about $6 as of writing. Shares are down 17.5% year-to-date, and honestly it hasn’t had that much of a drop in a long time. It managed to see some growth as the storage company increased in popularity with the rise in e-commerce. Small businesses use storage for their products, and so we’ve seen an increase in the company’s use.
Storage Vault continues to see its business expand, so the recent drop is unwarranted. Now you can bring in this stable company that’s up 132% in the last five years. That’s a compound annual growth rate (CAGR) of 18.3%! We’ll always need storage, so that makes this company a stable stock I would absolutely consider.
A $500 investment in Storage Vault five years ago would be worth $1,200 today.
Kinross
Kinross Gold (TSX: K)(NYSE: KGC) is another of the TSX stocks I would explore right now, currently trade at about $4.34 as of writing. Shares are down 40% year to date, as it continues to work at receiving those 2008 highs once more. Gold has always been a strong buy during a recession, so it could be that this company is due for a boost.
Furthermore, Kinross has a diversified portfolio of assets around the world. That no longer includes Russia, where the company divested all of its assets. Still, during its recent earnings report the company achieved record production for some of its mines, brought in cash from its Russian and Ghana sales, and remained confident it can achieve its annual guidance.
A $500 investment in Kinross Gold five years ago would be worth $422 today.
Ballard Power Systems
Finally, Motley Fool investors would do well to consider Ballard Power Systems (TSX: BLDP)(NASDAQ: BLDP), trading at $8.80 as of writing. This company is primed to soar thanks to the world shifting to clean energy uses. And that doesn’t just mean solar and wind power, or even just electric vehicles. Ballard powers everything else. That includes trains, marine vehicles and buses all around the world with its hydrogen-fuel cell technology.
The company continues to find new partnerships in new locations, creating a diversified global portfolio that will set you up for years. And yet it trades down 45% year to date. That’s a great time to jump in on this stock among your TSX stocks. Shares are still up 140% in the last five years alone, offering a CAGR of 19%.
A $500 investment in Ballard Power five years ago would be worth $1,125 today.
