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.
