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.
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 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.
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.
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.