5 Stocks You Can Confidently Invest $500 in Right Now

Consider putting your surplus cash in these stocks for stellar capital gains.

| More on:
Woman has an idea

Image source: Getty Images

The macroeconomic environment continues to remain challenging. However, investors shouldn’t worry much and should continue to put their surplus cash in stocks with prospects to deliver stellar capital gains in the long term. If you can invest $500, consider investing in these five Canadian stocks now.

goeasy

goeasy (TSX:GSY) is a must-have stock in any portfolio. The company’s ability to consistently grow its earnings at a solid double-digit rate and dividend hikes make it an attractive growth and income stock. It offers lending and leasing service to subprime customers in Canada and benefits from strong loan demand and a wide product range. 

Higher loan originations, omnichannel offerings, steady credit and payment volumes, and a large lending market will likely drive goeasy’s revenue and earnings at a double-digit rate. Moreover, the company could continue to maximize its shareholders’ returns through higher dividend payments. 

Dollarama 

Dollarama (TSX:DOL) could be a solid addition to your portfolio. This low-volatility stock is known for outperforming the broader markets and delivering stellar returns amid all market conditions. Dollarama’s value pricing and a wide variety of consumables continue to drive traffic and support its growth. 

Moreover, its extensive store base and presence across all 10 provinces give Dollarama a competitive advantage over its peers. Moreover, its growing footprint in the international market, lean operations, and focus on enhancing shareholders’ value through share buybacks and dividend increases act as a catalyst. 

Alimentation Couche-Tard 

Alimentation Couche-Tard (TSX:ATD) is another attractive stock investors could consider in the retail sector. Its defensive business and high growth drive its stock price higher. Couche-Tard’s large network of stores and growing presence in the U.S. augur well for growth. 

Moreover, its compelling pricing and focus on strategic acquisitions to expand its store base and accelerate growth are positives. It’s worth highlighting that Couche-Tard’s earnings have grown at a double-digit rate in the past several years, allowing it to consistently increase its dividend. Meanwhile, its low-cost debt and strong balance sheet position it well to capitalize on growth opportunities. 

Shopify 

Given the steep correction, investors can confidently invest in the shares of Shopify (TSX:SHOP). The ongoing digital shift and increase in e-commerce penetration provide a solid foundation for long-term growth for Shopify. Meanwhile, Shopify, through its aggressive investments in POS (point of sale) and fulfillment services, is well positioned to capitalize on the secular sector trends and drive its market share. 

The higher adoption of its payments and capital solutions augur well for growth. Moreover, the addition of new marketing and sales channels and expansion in new geographies will likely support its growth. This tech stock is also trading cheap, providing an opportunity to invest at current levels.

Aritzia

Aritzia (TSX:ATZ) is the final stock on this list. The strong demand for its offerings and ability to drive sales and earnings at a double-digit rate indicates that the company is poised to deliver stellar returns in the long term. 

Aritzia stock has outperformed the benchmark index in the past several years. Moreover, with full-price selling, momentum in the e-commerce business, new boutique openings, and expansion in the U.S., Aritzia expects to grow its top and bottom lines at a solid double-digit rate, which will drive its stock price higher. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard, Aritzia, and Shopify. The Motley Fool has a disclosure policy.

More on Investing

analyze data
Dividend Stocks

How Much Do You Need to Invest to Give Up Work and Live Only Off Dividend Income?

Here's an honest assessment of how difficult it is to achieve "quit-your-job" levels of passive income.

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

TFSA Investors: Make Your Recession Watchlist Now!

These long-term stocks offer immense value for TFSA investors looking to create immense returns coming out of a recession.

Read more »

Profit dial turned up to maximum
Dividend Stocks

2 TSX Dividend Stocks With Seriously Huge Payouts

The TSX telecom sector has some great high-yielding companies up for grabs.

Read more »

TFSA and coins
Dividend Stocks

Dividend Stocks With Yields TFSA Investors Should Lock In Now!

Are you looking to build a passive-income stream? Here are two top dividend stocks to load up on in your…

Read more »

Gas pipelines
Energy Stocks

Better Energy Stock to Buy: Suncor or Canadian Natural Resources?

Suncor and Canadian Natural Resources are off their recent highs. Are these stocks now good to buy?

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Thursday, March 23

TSX stocks may remain volatile, as investors continue to assess how the high interest rate environment could affect the economy…

Read more »

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

Is it a Trap? 3 TSX Stocks With Ultra-High Dividend Yields 

Who doesn’t love dividends? But the high-interest rate environment makes ultra-high dividends unsustainable. Are these stocks a value trap?

Read more »