5 Stocks You Can Confidently Invest $500 in Right Now

These Canadian corporations continue to perform well in all market conditions, making them attractive long-term bets.

| More on:
stock analysis

Image source: Getty Images

Investing in the shares of companies that continue to perform well regardless of market conditions is an excellent strategy to build wealth in the long term. Thankfully, the TSX has several fundamentally strong companies that deliver solid financials irrespective of the economic situation, making them attractive investments. 

So, if you have $500, consider investing in these five Canadian stocks to outperform the broader markets in the long term. 

goeasy 

goeasy (TSX:GSY) operates a non-prime consumer lending business with a solid track record of producing stellar growth in all market conditions. The company’s top line has increased at a CAGR (compound annual growth rate) of 17.7% between 2012 and 2022. During the same period, its adjusted earnings per share (EPS) grew at a CAGR of 29.5%. Further, it improved at a CAGR of 19.44% in the last five years (as of June 30, 2023). At the same time, its EPS had a CAGR of 31.91%. 

Its high-quality loan originations and expanded product base will drive its top line at a double-digit rate in the coming years. Meanwhile, steady credit performance and operating efficiency will cushion its bottom line. The company will further enhance its shareholders’ returns via higher dividend payments.

Brookfield Renewable Partners

Clean energy company Brookfield Renewable Partners (TSX:BEP.UN) is another top stock. The company’s large installed capacity of 31,600 megawatts, highly contracted business, and long-term agreements add stability to its revenue and cash flows and support its growth. 

Looking ahead, its diversified asset base and growing adoption of renewable energy sources augur well for growth. Moreover, its robust development pipeline and low operating costs will continue to drive its top- and bottom-line growth. Furthermore, the company could continue to enhance its shareholders’ returns through higher dividend payments (plans to increase the dividend by 5-9% in future years). 

Loblaw 

Loblaw (TSX:L) is Canada’s largest food and pharmacy retailer. The company’s low-risk business, large scale, broad product offerings, and value pricing continues to drive its top and bottom line growth regardless of the economic situation. 

The growing penetration of low-priced private-label brands, inflation-fighting price freeze, and attractive loyalty rewards program will likely support its top-line growth. Further, its strategic procurement, modernization and automation of its supply chain, and focus on optimizing its retail network are anticipated to drive its margins and improve productivity. 

Dollarama

Similar to Loblaw, Dollarama (TSX:DOL) is a reliable stock in the retail space. Dollarama offers a wide range of products at low fixed-price points, which drives consumers towards its stores in all economic situations. The company’s resilient business, solid growth, and ability to return cash to its shareholders make it a solid long-term bet. 

The company’s extensive network of stores in the domestic market and value pricing will continue to drive its revenue and EPS at a decent pace. Further, its growing international footprint bodes well for future growth. 

Aritzia 

Aritzia (TSX:ATZ) stock is an attractive investment near the current levels. The luxury fashion brand’s revenue and earnings sport a CAGR of 26% and 23%, respectively, between fiscal 2019 to fiscal 2023. While the near-term margin concerns have led to a correction in Aritzia stock, this presents a solid buying opportunity for long-term investors.

The company expects to grow its revenues by 15-17% annually through 2027. The opening of new boutiques, favourable store economics, expansion in the U.S., and strength in the e-commerce segment will drive its top and bottom lines. 

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 Aritzia. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Investing

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, July 24

In addition to the Bank of Canada’s rate decision and press conference, TSX investors will closely watch important economic data…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Here Are My Top 5 Dividend Aristocrats to Buy Right Now

Now is the time to buy these top five dividend aristocrats at their two-year low before they recover to 2021…

Read more »

Target. Stand out from the crowd
Stocks for Beginners

5 Stocks You Can Confidently Invest $500 in Right Now

Whether it's stocks making a comeback or proven investments over decades, these five belong in your portfolio.

Read more »

edit Businessman using calculator next to laptop
Investing

Unearthing Incredible Value: 2 Dirt-Cheap Commodity Stocks That Demand Attention Today

Barrick Gold (TSX:ABX) and another great mining stock look like huge value plays right here.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Investing

New Rules for Grocers: 1 Canadian Grocery Stock That Could Soar

Metro (TSX:MRU) stock looks poised to win as it signs onto the new grocery code of conduct.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Is NorthWest REIT Stock the Best High-Yield Dividend for You?

NorthWest REIT (TSX:NWH.UN) offers a substantial dividend, but exercise caution with this riskier stock.

Read more »

oil and gas pipeline
Energy Stocks

TC Energy Stock Is Starting to Get Ridiculously Oversold

TC Energy (TSX:TRP) stock is one of those deep-value dividend plays for the next decade and beyond.

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Investing

Want to Get Richer? Here Are the 3 Best Stocks to Buy Now and Hold Forever

These three stocks all have fantastic operations and years of growth potential, making them three of the best to buy…

Read more »