Got $300? 2 Simple TSX Stocks to Buy Right Now

A $300 investment can grow 10-fold if used to purchase two simple, yet profitable TSX stocks right now.

| More on:
data analytics, chart and graph icons with female hands typing on laptop in background

Image source: Getty Images

An investment of $300 on stocks could grow 10-fold with the right stock choices. Despite its underperformance year to date, the TSX has simple yet profitable options for Canadians with limited capital to invest. Two smart buys right now belong to the 2022 TSX30 List.

Aura Minerals (TSX:ORA) ranked number one in 2021 and is the top growth stock once more in 2022. Obsidian Energy (TSX:OBE) is no longer an obscure name following its number two ranking in the fourth edition of the annual program that showcases the top 30 TSX growth stocks.

The mining stock trades at only $8.20 per share, while the share price of the energy stock is $10.94.

Back-to-back TSX30 winner

Aura Minerals engages in the development and operation of gold and base metal projects in the Americas. The $596.83 million mid-tier gold and copper production company has producing assets in Honduras, Brazil, and Mexico plus one gold project in Colombia.

The mining stock topped the 2022 TSX30 List for its 683% price appreciation (adjusted by dividends) in the last three years. Had you invested $300 in September 2019, your money would be worth $2,411.96 today. As of this writing, Aura is down 20.41% year to date. However, it should attract more investors after the back-to-back wins in 2021 and 2022.

Its president and chief executive officer (CEO) Rodrigo Barbosa said, “It is with great pride that we receive this award, now for the second time. Since our IPO [initial public offering] in Brazil, we have announced a clear pipeline for growth to exceed 400,000 ounces of production through our greenfield projects and new acquisitions.”

Barbosa added the award recognizes Aura’s potential to deliver shareholder value in a volatile environment with the pandemic and high inflation. In the first half of 2022, production (10.1%) and sales (12.3%) fell versus the same period in 2021.

Profit declined 13.5% year over year to $43.86 million. Management expects production for the full-year 2022 to be between 260,000 and 275,000 gold equivalent ounces.

Since Aura Minerals is a dividend payer, you can also earn recurring passive income. In the first half of 2022, the company paid more than $15 million in semi-annual dividends. If you invest today, the dividend yield is 7.69%.

High flyer

The energy sector is having a banner year because of rising crude prices. Obsidian Energy is one of 14 energy producers that made it to the TSX30 List in 2022. Loui Anastasopoulos, the TSX’s CEO, said. “We’re seeing an interest in the sector that we haven’t seen in years.”

Obsidian Energy placed second this year owing to its +537% three-year performance. Like most energy companies, the $898.73 million mid-size oil and gas company is flush with cash. Because of higher production and commodity prices, free funds flow from operations (FFO) in the second quarter (Q2) of 2022 soared 271% to $157 million versus Q2 2021. Management also reduced net debt by 21% to $343 million.

This TSX30 winner is up nearly 110% year to date and should sustain the upward trajectory if oil prices remain elevated. Obsidian Energy is a non-dividend payer, but the massive capital gains should compensate for that.

Awesome picks     

Aura Minerals and Obsidian Energy are awesome picks if you only have $300 to invest. Furthermore, both stocks should be on the radars of growth investors.

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. The Motley Fool has a disclosure policy.

More on Investing

A bull and bear face off.
Investing

Got $3,000? 1 Simple Stock to Buy Before the Bear Market Ends

Leon's Furniture (TSX:LNF) stock looks too cheap to ignore for investors looking to play the post-recession world.

Read more »

Growth from coins
Investing

2 TSX Stocks That Could Grow Your Portfolio Over the Next Decade

Do you want to invest for 10 years? Here are two stocks that could significantly lift your portfolio.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

TFSA Investors: 2 TSX Stocks With Unbelievable Staying Power

Invest in solid businesses with unbelievable staying power that also pay you a nice dividend. Consider these dividend stocks on…

Read more »

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

TFSA Passive Income: 3 Incredible Stocks That Earn $365 Every Month

Are you looking to raise the passive income in your TFSA? Here are three oversold stocks that could easily earn…

Read more »

man slides
Investing

3 UNDERVALUED TSX Stocks You’ll Regret Not Buying at These Prices

Long-term investors would be wise to take advantage of these three TSX stocks trading at massive discounts.

Read more »

A worker uses a double monitor computer screen in an office.
Dividend Stocks

2 Top Commodity Stocks to Hedge Your Portfolio Against Inflation

Consider investing in these two commodity-backed stocks to hedge your portfolio against the inflationary environment.

Read more »

Meeting handshake
Bank Stocks

TD Bank (TSX:TD): Massive U.S. Deal Could Close Soon

The Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is about to close a $13.4 billion U.S. deal, sources say.

Read more »

TSX Today
Investing

TSX Today: What to Watch for in Stocks on Monday, September 26

Rising fears of a looming recession could continue to keep TSX stocks highly volatile today.

Read more »