Canadians with investment appetites but limited capital can buy three Canadian stocks for less than $10 per share. You can earn recurring passive income from two and realize fat capital gains from one high-growth stock.
Specialized services
Secure Energy Services (TSX:SES) isn’t a popular name in the red-hot energy sector, but it has been a winning stock in the last two years (75.6% average return). If you’d invested $5,000 at year-end 2020 and still hold the stock, your money would be worth $16,833.33 today. As of this writing, the share price is $8.08, which is suitable for a 14.94% year-to-date gain.
The $2.5 billion energy services firm provides solutions to upstream oil and natural gas companies. Its customer-driven solutions include Midstream Infrastructure, Waste Management, Project and Environmental Services, Landfills, and Fluids Management.
The impressive financial results in the first three quarters of 2022 make SES an attractive investment prospect for 2023. In the nine months that ended September 30, 2022, net income reached $152 million compared to the $38 million net loss a year ago. The net cash flow from operating activities jumped 576.1% year over year to $152 million.
With a strong balance sheet and increased discretionary free cash flow-generation capabilities, management commits to delivering meaningful returns to shareholders. Besides potential outsized capital gains, SES pays a generous 5% dividend.
Low-risk lending policy
Timbercreek Financial (TSX:TF) is an appealing option for its low price and high yield. At only $7.76 per share (+9.94%), you can partake of the mouth-watering 8.82% dividend. Also, the stock pays monthly dividends, and 1,000 shares ($7,760 investment) will generate $57.03 in passive income every month.
The $651.65 million non-bank mortgage lender is distinct from commercial banks because of its shorter duration (not more than five years) and structured financing solutions. Timbercreek’s clients are real estate investors, and it lends against income-producing real estate such as multi-residential, retail, and office properties.
Its chief executive officer (CEO) Blair Tamblyn said the durability of the mortgage portfolio through market cycles is the hallmark of Timbercreek’s income-focused investment philosophy. The company also benefits from the rising-rate environment and generates strong distributable income, because rates in the portfolio are primarily variable.
Niche player
Payfare (TSX:PAY) is a non-dividend payer but is a potential multi-bagger. The rebound is on because at $6.80 per share, investors are already winning by 58.51% year to date. Market analysts’ 12-month average price target is $13 (+91.2%).
The $318.27 million global fintech company caters to the gig economy, both for the workforce and businesses, marketplaces or gig platforms. Gig workers gain instant access to their earnings via Payfare while enjoying a full-featured digital banking experience.
Meanwhile, the payout system for gig platforms and marketplaces prioritizes the needs of the gig workers. Large gig platforms like DoorDash, Lyft, and Uber avail of Payfare’s services.
The good news in Q3 2022 was the 183% year-over-year increase in revenue to $35.9 million and a record $3.9 million in operating cash flow. Its net loss improved to $0.8 million compared to $4 million in Q3 2021. For Q4 2022, the revenue-growth guidance versus Q4 2021 is 125% ($39 million).
Price-friendly stocks
You don’t need much capital to earn passive income or realize profits from the price-friendly stocks in focus.
