Canadian Investors: Where to Put $100 Right Now

A $100 capital is enough to purchase shares of top-performing TSX stocks or a cheap, high-yield dividend stock.

| More on:
Canadian Dollars

Image source: Getty Images

Canadians with limited capital shouldn’t be hesitant to invest in the stock market. The overall return counts more than the investment amount. Your $100 can grow substantially whether through price appreciation or dividend payments. For investors with limited capital who are looking for meaningful growth, Verde Agritech (TSX:NPK) or Rogers Sugar (TSX:RSI) are two of the best options right now.

Agricultural technology company Verde Agritech is the TSX’s top performer so far in 2022 with its 210.7% year-to-date gain. Had you invested $100 in the company at year-end 2021, your money would be worth $310.71 today.

Current investors of Rogers Sugar enjoy an 11.9% year-to-date gain on top of the healthy 5.56% dividend. Thus, the same investment amount in this consumer staple stock should compound to $111.93 plus dividends of $1.39 every quarter.

Superb revenue growth

Verde Agritech will report its Q2 2022 earnings results on August 15, 2022. Investors are curious as to whether the $472.6 million company will report spectacular figures like in the preceding quarter. In Q1 2022, revenue increased 1,260% to $11.3 million versus Q1 2021. Net profit reached $3.03 million compared to the $1.81 net loss from a year ago.

The 17-year-old fully-integrated company is a producer of potash fertilizer. Verde Agritech owns mineral properties in Brazil where it mines and processes the main feedstock. Management’s ultimate goal is to be the country’s largest potash producer by the end of this year. Potash demand in Brazil is the second-largest in the world.

Cristiano Veloso, Founder, President, and CEO of Verde, said, “2022 has started in a very shaky manner for the agricultural market globally. In Brazil, which depends on imports for over 96% of its potash supplies, the concern with fertilizers has been at the forethought of most farmers.”

The company delivered substantial volume in the first quarter despite record rainfalls that caused the postponement of an additional 25,133 tons. Verde volume targets by year-end 2022 and full-year 2023 are one million tons and two million tons, respectively.

Verde Agritech expects its newest technology, Bio Revolution, to drive growth. This technology utilizes innovative methods to incorporate microorganisms into mineral fertilizers. The company is also laser-focused on research and development. It has one patent, eight pending patents, and an array of proprietary technologies, including Bio Revolution.

The current share price of $8.70 could more than double if Verde Agritech continues to report impressive results in the coming quarters.

Positive outlook

Rogers Sugar is a cheap ($6.47 per share) but mean dividend machine. The $666.85 million company operates cane sugar refineries that produce sugar. It also supplies maple syrup and derived maple syrup products in more than 50 countries. In the first half of 2022, consolidated revenue and net earnings increased 10.1% and 5.1% versus the same period in 2021.

President and CEO of Rogers Sugar and Lantic Inc., Mike Walton, said, “The demand for refined sugar was very strong in the second quarter of 2022, following the volatility and unforeseen events that negatively impacted our first quarter sales volume.”

Management maintains a positive outlook for the sugar segment in 2022. Walton said, “We expect this will more than compensate for the challenges we are currently experiencing in our maple segment relating to inflationary costs pressures.”

No capital is too small

No capital is too small as long as you realize the desired returns. A $100 capital is enough to purchase 11.5 shares of Verde Agritech or 15.5 shares of Rogers Sugar.   

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 has no position in any of the stocks mentioned.

More on Dividend Stocks

edit Woman calculating figures next to a laptop
Dividend Stocks

Should You Invest in BCE Stock for its Dividend?

BCE stock is not yet out of the woods. But this article could change your perspective about the stock and…

Read more »

sale discount best price
Dividend Stocks

Bargain Hunting for Dividends: 3 High-Yield Stocks Haven’t Been This Cheap in Years

Enbridge (TSX:ENB) stock's key enterprise value multiple reached a new multi-year low recently. BCE remains a high-yield dividend play while…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Cash in Your Pocket: 3 TSX Dividend Stocks That Pay Out Monthly

Bolster your monthly income with these three dividends stocks that act like regular paycheques.

Read more »

A plant grows from coins.
Dividend Stocks

Beat the TSX Index With These Cash-Gushing Dividend Stocks

These cash flow-rich stocks are more likely to gush passive dividend income streams long into the future.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Here Are My Top 5 Dividend Aristocrats to Buy Right Now

Canadian National Railway (TSX:CNR) is a Dividend Aristocrat with 27 years of dividend growth.

Read more »

Woman has an idea
Dividend Stocks

The Smartest Canadian Dividend Stocks to Buy With $500 Right Now

Besides their years-long dividend-growth track record, the strong fundamentals of these Canadian dividend stocks make them really attractive to buy…

Read more »

retirees and finances
Dividend Stocks

No, the CPP Didn’t Squander $46 Billion of Taxpayer Money

The Globe and Mail claimed that the CPP Board mismanaged Canadians' money, but it beat the returns earned by the…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

Better Buy: Telus or BCE Stock

BCE (TSX:BCE) has a higher dividend yield than Telus (TSX:T). Is it a better buy?

Read more »