With the onset of new brokerage firms like Wealthsimple, investors in North America can now buy fractional shares. Suppose you want to invest in a stock trading at $1,300 per share but do not have more than $300 of investable income.
With typical trading, you cannot invest in the stock. By using Wealthsimple, you can purchase fractional shares of the stock worth $300. The whole goal is to make investing in high-quality stocks more accessible.
As the most popular investing platform for the modern Canadian investor, Wealthsimple is incredibly easy to use. Through its unique fractional investing feature, it is allowing Canadians with lower capital to invest in top-notch equity securities.
Today, we will look closely at three stocks Wealthsimple investors can invest in for the long haul.
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Constellation Software
Constellation Software Inc. (TSX: CSU) is a no-brainer to consider if you want to leverage fractional investing. As of this writing, CSU stock trades for $2,643 per share, making it the priciest stock on the TSX right now. The $56 billion market capitalization company headquartered in Toronto has delivered over 15,000% in returns to its shareholders since going public in 2006.
Using Wealthsimple, you can purchase fractional shares, letting you diversify your portfolio with relatively smaller investment capital. The underlying company offers critical software solutions to businesses across several verticals. With a proven strategy involving organic and acquisition-based growth, CSU stock is a rarity among Canadian tech stocks.
While most tech stocks are incredibly volatile, CSU stock has displayed impressive stability and resilience over the years. Up by 24.2% year to date, it can be a good addition to your portfolio at current levels.
TMX Group
TMX Group Ltd. (TSX: X) is not a stock with prohibitively expensive share prices. As of this writing, it trades for $29.60 per share, making it fairly accessible. The $8.3 billion market capitalization financial services company is headquartered in Toronto.
It offers equities, fixed income, derivatives, and energy market exchanges. The firm also offers depository services, tech solutions, clearing facilities, and several other services.
Since August 2013, the stock has outpaced the broader market by a significant margin. Between 2013 and the time of writing, it has delivered almost 233% in returns to shareholders. In the same period, the benchmark S&P/TSX Composite Index has grown by 55.6%. If you are looking for a consistent market-beating stock, TMX stock could be it.
Apple
Apple Inc. (NASDAQ: AAPL) is the largest publicly traded company worldwide. With a market cap over $2.7 trillion, it is arguably the biggest tech company in the world right now. While its iPhone sales still contribute to a majority of its revenue, the company has diversified into several other products and services over the years.
By creating its own ecosystem of different technologies, Apple has successfully placed itself in a position to fully capitalize on its offerings. As of this writing, Apple stock trades for US$174.49 per share. While that might not seem expensive, it is priced at 26.2 times forward earnings.
It means the stock is technically expensive. However, with immense growth potential still there, it can be an excellent addition to your self-directed portfolio as a buy-and-hold investment.
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Foolish takeaway
With Wealthsimple making investing easier, Canadian investors can now invest in otherwise prohibitively expensive big-ticket stocks. If you want to take advantage of fractional investing to gain exposure to some of the top publicly traded companies, Constellation Software, TMX Group, and Apple stock can be worthwhile assets to consider.
