Canadian Investors: Where to Put $100 Right Now

Canadians with only $100 to invest can put the money in a top growth stock or a great value stock for capital growth.

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Seed capital of $100 is enough to start investing in the stock market. The amount appears insignificant, but it could grow into a considerable amount if you buy low and sell at a higher price. However, price appreciation is just one of the many ways to grow your capital.

Dividend investing is an income-generating strategy. Apart from capital gains, investors earn recurring income streams from dividend-paying stocks. Assuming you can only afford $100 to purchase your first stock, you have a choice between Verde Agritech (TSX:NPK) and Corus Entertainment (TSX:CJR.B).

The former isn’t a dividend payer, although it’s one of the top performers in 2022. The latter trades at a deep discount but pays an incredibly high dividend.

Growth stock

Verde Agritech is a winning and profitable stock this year. At only $7.42 per share, the trailing one-year price return is an eye-popping 552%. A $1,000 investment a year ago would be worth $6,524.59 today. Also, current investors enjoy a 184% year-to-date gain.

The $410.17 million agricultural technology company is a producer of potash fertilizers with a strong focus on research and development. Verde Agritech is also fully integrated and owns mineral properties where it mines and processes the main feedstock for selling and distribution. It operates in Brazil, which is the single-largest importer of potash.

Verde’s excellent financial results reflect in the stock performance. In the second quarter (Q2) of 2022, the top line (revenue) increased 362% to $24.86 million versus Q2 2021. The quarter’s highlight was the enormous 3,426% year-over-year growth in net profit to $9.62 million.

Its founder, president, and chief executive officer (CEO) Cristiano Veloso credits the exponential growth to increased productivity and the market’s growing demand for Verde’s product. Veloso said, “We trust that our expanding production and market presence will lead us to meet our goals for the year and continue to create sustainable long-term value for Verde’s stakeholders.”   

For the full-year 2022, the target is to produce one million tons and achieve a revenue of $109 million. The upward revisions are 43% and 51%, respectively, higher than management’s original guidance. Verde Agritech’s sales target in 2023 is double the goal this year, or two million tons.

Value stock

The business of Corus Entertainment is easy to understand. This $759.22 million media and content company has two core business segments: Television and Radio. The first consists of specialty and conventional television networks, while the second has radio stations in Canada and abroad.

The communications services stock is down 19% year to date. However, market analysts covering Corus recommend a buy rating. Their 12-month average price target is $5.79, or a 54% appreciation from its current share price of $3.75. The overall return should be higher if you factor in the generous 6.40% dividend.

In the nine months ended May 31, 2022, consolidated revenue increased 6%, while net income plunged 20% versus the same period in fiscal 2021. Still, Doug Murphy, CEO of Corus, said the business portfolio is designed to be more resilient to withstand potential recessionary pressures. He looks forward to the fall, when demand for content usually increases.         

Hefty gains

Verde Agritech is a top growth stock right now, although Corus Entertainment is a great value stock that could stage a comeback. Either way, your $100 investment could produce hefty gains.

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.

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