Canadian investors seeking out stocks these days may be a bit stressed if they’re considering putting thousands down on a stock or two. However, when it comes to investing, length of time is far more important than planning on when to buy.
That’s why today I’m going to go over five stocks that investors can confidently put a $500 stake into. Each has proven over time to be a strong investment that you won’t come to regret.
Over the last decade, investors have seen the strength of Canadian Pacific Kansas City (TSX:CP). The company brought its costs down and started saving. It all culminated in the acquisition of Kansas City Southern, which is now up and running.
So while there’s been growth of 317% in the last decade as of writing, there’s likely to be even more coming. This means I wouldn’t be disappointed that you’re not getting the higher dividend yield offered a few years ago. Instead, returns are coming your way from investing in this railway stock now offering revenue from every corner of North America.
Another strong choice is Loblaw Companies (TSX:L), which has also seen a lot of growth in the last few years. This came during a period of growth that saw Loblaw stock purchase Shoppers Drug Mart along with other acquisitions. Further, it expanded its PC Optimum program and President’s Choice Financial to bring on new clientele.
The pandemic didn’t slow down Loblaw stock, and the company continues to expand even today. So again, while shares are up 139% in the last 10 years, they could soar even higher, making a $500 investment easily double in that time.
If you’re looking for safety, go with a Big Six Bank. Among the batch, Royal Bank of Canada (TSX:RY) is the largest by market cap at this point. Furthermore, it hasn’t fallen as drastically as some of its peers. That’s thanks to its wealth and commercial management, as well as capital market sectors. These have been lucrative revenue streams, keeping it on top.
Royal Bank stock is now up about 105% in the last decade. As well, that $500 would also bring in a dividend yield of 4.37% as of writing. It trades at just 12.2 times earnings, so I would grab that value before it’s gone.
While Hydro One (TSX:H) doesn’t have as much history, it certainly has a future. Hydro One stock is currently the most used utility provider in Ontario. The Province of Ontario also has a 47% stake in the company, so there’s certainly stability there as well.
So even though it doesn’t have a decade of growth behind it, it has still grown an impressive 72% since coming on the market in 2015. And again, you can also bring in a dividend yield at 3.18% as of writing. Overall, you get a solid investment, with even more stable growth thanks to the company’s focus on utilities.
Finally, we have Waste Connections (TSX:WCN), a stock that never disappoints. Waste Connections stock deals with, well, waste! And that’s something the world over isn’t going to be short on anytime soon. However, Waste stock has an advantage as it continues to acquire smaller waste management operations. Now, its operations are spread across Canada and into the United States.
Shares of Waste stock are up about 200% in the last decade alone, with a sure strategy of growing both organically and through acquisitions. It’s also a great buy as a defensive strategy during a recession. So definitely consider putting your $500 towards this stock as well.