3 Simple TSX Stocks to Buy With $25 Right Now

These three TSX stocks offer a no-brainer choice when it comes to investing, even just a small amount over time.

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

Canadian investors starting out may have come across the investment method of dollar-cost averaging. In this method, investors put money aside on a consistent basis towards their chosen TSX stocks. Over time, this reduces volatility from investing a huge chunk all at once. But it also allows you to make smaller investments as well.

The problem is, if you can only afford around $25 per month, you want to find TSX stocks that you can buy right away. And right now is a great time, with the market rebounding, yet with stocks still undervalued in this bear market.

So, with that in mind, here are three TSX stocks you can buy, even with just $25, right now.

Extendicare

The Canadian population is aging, and companies like Extendicare (TSX:EXE) are becoming more and more necessary. That’s especially true as the baby boomers age, soon to enter their 80s, when many need more care.

That’s what makes Extendicare one of the simplest TSX stocks to buy, especially at a share price of $7.50 as of writing. And it’s making more strides, moving away from retirement living and towards home care and long-term care. With a 6.4% dividend yield on top of that, it’s one of the best TSX stocks to consider.

Shares in Extendicare are up 7% year to date and 6% in the last month.

Martinrea

Martinrea International (TSX:MRE) is a simple choice because it creates simple products. It’s one of the TSX stocks offering stability, as it provides metal parts and products across North America for everything from oil coolers to hoses. And yet shares are still so cheap, trading at just $11.34 among TSX stocks.

But this simple model will remain a great buy among your other TSX stocks. It offers investors entry into the sector of commodities, because these products are simply not going to disappear anytime soon. No matter what the market is doing. So, you can lock in a 1.8% dividend yield, and look forward to protection during further market downturns.

Shares of Martinrea stock are stable year to date and up 38% in the last month alone.

NorthWest Healthcare

Finally, if you want some strong passive income, then choose TSX stocks in the real estate sector. If you want that income to be incredibly stable, choose NorthWest Healthcare Properties REIT (TSX:NHW.UN). This real estate investment trust (REIT) remains one of the best out there, offering up a high dividend yield at 6.1%, while in the stable healthcare industry.

NorthWest is one of the best TSX stocks, though, because it’s been expanding rapidly. That includes organically and through acquisitions, where it buys up properties within the healthcare sector around the world. And yet it trades at just 7.5 times earnings, even with shares performing so well in the last few years.

Shares are down just 1.5% year to date and up 7% in the last month.

Bottom line

These three TSX stocks may be cheap, but they’re no less stable and strong. You could put $25 towards each of them or split it up each month and end up with a portfolio that could last you decades — all while collecting stellar passive income through dividends.

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 Amy Legate-Wolfe has positions in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Stocks for Beginners

grow money, wealth build
Dividend Stocks

3 TSX Stocks to Make the Perfect Passive Income Portfolio

If you're an investor who wants to set it and forget it, these three TSX stocks are ideal for your…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Stocks for Beginners

Why Dye & Durham (TSX:DND) Is Rallying Despite its Worse-Than-Expected Q4 Earnings

Here are the main reasons why DND stock has seen a sharp rally in the last few sessions.

Read more »

consider the options
Stocks for Beginners

3 Recession-Resistant Stocks to Buy Right Now

Are you worried about a recession? Here are three recession-resistant stocks that can help you ride out the storm.

Read more »

TSX Today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Wednesday, September 28

Growing concerns about slowing global economic growth could keep TSX stocks volatile in the near term.

Read more »

A golden egg in a nest
Dividend Stocks

How to Turn $5 Into $50,000 for Retirement

Can you invest in your retirement goals even in this volatile market? The answer is yes, and an investment amount…

Read more »

Glass piggy bank
Dividend Stocks

Compound Interest: 3 Dividend Stocks That Can Make You Rich

If you're looking to maximize the incredible powers of compound interest while investing for the long haul, here are three…

Read more »

money cash dividends
Stocks for Beginners

New Investors: The 2 Best Options to Earn Regular Passive Income

The stock market is heading into a new downturn, allowing investors to buy quality stocks for a bargain. Here are…

Read more »

financial freedom sign
Stocks for Beginners

1 U.S. Stock to Buy That Could Make You a Millionaire

Keep investing in this gloomy market in great stocks like Mastercard to quicken your path to become a millionaire!

Read more »