2 Growth Stocks to Buy With Just $500

Are you looking for some stellar growth stocks to buy right now? Here are two great options that can provide decades of growth.

| More on:
Money growing in soil , Business success concept.

Image source: Getty Images

Investors often focus on investing in stocks that can provide a suitable retirement income. Unfortunately, this means that growth stocks are neglected or completely ignored. That’s a shame, because there are some stellar growth stocks to buy right now.

And you don’t need a lot of money to start, either. Here are two growth stocks to buy starting with just $500.

Don’t miss the bus (again) on this growth stock

Shopify (TSX:SHOP) is one of the biggest growth stories of the past decade. In the years before the pandemic, the e-commerce platform was one of the best growth investments on the market.

When the pandemic hit, Shopify’s growth when into overdrive as in-person retail was shuttered in lieu of mobile commerce.

Now that stores are open again, some of that growth has leveled off. An environment of rampant inflation and rising interest rates also has Shopify come under pressure to post profits.

As a result, the stock is trading down 40% over the trailing 12-month period.

So, what makes Shopify one of the growth stocks to buy now? That comes down to long-term growth potential, which Shopify has plenty to spare.

Nevertheless, to answer its profitability problem, Shopify has announced a series of price increases.

This represents the first bump in a decade for the company. Incredibly, over that time, Shopify has continued to invest in its growing platform, bolting on new capabilities and add-ons.

Another key point is market share. Prospective investors should keep in mind that Shopify has a growing presence in over 170 countries around the world. In fact, the platform is responsible for over US$440 billion in global economic activity.

In other words, Shopify is a great growth stock to buy right now at a discounted rate. And what a discount it is!

A $500 investment right now will get just over seven shares of Shopify. To put that discount into perspective, at this point last year, that same $500 investment would only fetch four shares. And if we look further back, $500 was enough for just two whole shares two years ago.

Buy this stock irrespective of which way the market goes

When market volatility hits, investors gravitate to more defensive stocks. Consumers exhibit similar behaviour. Specifically, consumers will seek out more frugal options at other retailers and trading down on some items.

This is part of the reason why Dollar stores are such appealing investments. Chief among those dollar stores to consider is Dollarama (TSX:DOL). Dollarama operates the largest network of dollar stores in Canada, boasting a presence in every province.

The company also has a growing international presence through Dollar City brand. Dollarama’s presence there spreads across several Latin American countries.

Part of the appeal of Dollarama comes in the form of its unique pricing model. The company prices goods at various fixed price points. This also allows the company to bundle several items together at a single price, which caters to value-seeking shoppers.

The result is a stable business model that thrives during times of volatility as we saw in 2022.

In fact, Dollarama is one of the few companies on the market that came out of 2022 well into the black. Turning to this year, that stellar performance continues. As of the time of writing, the stock is up over 23% in the trailing 12-month period.

A $500 investment in Dollarama today will start investors off with six shares. That’s not enough to retire on, but it’s a good start to building your portfolio.

Growth stocks to buy now or later?

No investment is without risk, and that includes both Dollarama and Shopify. Fortunately, both stocks have significant long-term potential. Prospective investors should look at both stocks as long-term holdings and should form part of a larger, well-diversified portfolio.

Buy them, hold them, and watch them grow.

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 Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Dots over the earth connecting the world
Stocks for Beginners

Emerging Markets: Opportunities for High Returns in 2024

Are you looking for growth this year? Emerging markets could be one of the best areas to seek out high…

Read more »

Canada national flag waving in wind on clear day
Stocks for Beginners

Top Canadian Stocks to Buy in July 2024

These three Canadian stocks are set up for success if the past is any indication, and future favourites are correct.

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

1 Magnificent TSX Dividend Stock Down 13% to Buy and Hold Forever

This dividend stock is down 13% as of writing, marking a significant opportunity for those seeking out income and value…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Stocks for Beginners

The Top 3 Long-Term TSX Growth Stocks to Buy Today

These three growth stocks might be some of the best-performing stocks of the last year, but according to analysts so…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

A person builds a rock tower on a beach.
Stocks for Beginners

How to Start Investing With Just $1,000

Even just $1,000 can turn into retirement income with the right investment strategy. So, here's how to get started.

Read more »